What is the current yearly gross for this route?
Currently this route grosses $490,000 per year. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor you are paid per stop, per package, and through bonuses.
Can I finance the route?
There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons. However if you need money, you can review additional Financing Options Here
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), gas, repairs, employee payroll, vehicles, insurance for your vehicles, and liability insurance for your business (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates 290,000 per year in expenses/overhead.
What type of vehicle do I need?
The current owner runs this business with 7 vehicles that are included with the route. 3 P-1000’s, 2 P-500’s, and 2 cargo vans. 4 of the vehicles are paid for, and 3 still have a loan (estimated $100k in vehicle assets). Note: The vehicle loans have already been subtracted from the net.
Does the company provide a fuel incentive?
Yes, FedEx provides a fuel supplement based on current prices.
What is the Gross vs the Net income?
The gross income for the route is $490,000 per year, minus $290,000 estimated yearly expenses as mentioned above gives you the net of $200,000 per year!
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their route by using the yearly gross income, plus assets. This route is under priced!
What are the company requirements?
FedEx requires a third party background check, you must have no felonies and a decent driving record. Additionally 1 year of driving experience of a similar delivery vehicle you intend to drive within the last 3 years, or 5 years within the last 10 years if operating as an owner/driver of the business. If you do not meet these requirements, owners can now bypass the required experience by taking an approved FedEx course to qualify as drivers. Owners do not need to meet this requirement if they don’t intend to drive.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent FedEx. The contract is to protect both the company and its distributors.
Is this a viable business model for growth?
Yes! Route values can be increased by new account openings, and additional growth in the area. FedEx uses sales reps to expand and develop the routes. In fact CNBC recently did a documentary called “Inside The Package Wars” showing the growth over the years of FedEx and it’s competitor UPS. View The Video Here.
Why is the distributor selling?
Owner is investing in other business interest.
Where is the Terminal/pickup location?
Located in Kennesaw, Georgia.
How long has the business been established?
The current owner has owned the business for 2 year.
How many stops does the route driver do a day?
Routes average 100 stops per day and employees work an average of 8-9 hours.
How many days a week, and what hours do distributors work?
owner works 5 days a week Tuesday through Saturday with Sunday and Monday off. On average from 7am – 5pm.
How many employees are there?
There are 5 full time employees and 1 part time. Employees are willing to transfer with the business if given the opportunity.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. Terminal offers a program for vacation time. Additionally there are currently independent drivers who have FedEx experience that can cover for time needed off.
What is required in order to qualify for purchase?
Typically, most company routes or distributorships will require you to attend an interview for approval from the company, background check, and in most cases require the buyer to form some type of entity such as an LLC or Corporation. This not only protects the company, but also ensures protection of your business. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
HUGE FedEx business with multipler zip codes! Business averages $9,423 in weekly commissions and bonuses… This business is for the true investor with cash or assets to borrow againt! Includes 3 ground routes and 2 home deliveries routes. Truly positioned for more growth opportunity! Priced to sell at $499,000. Contact Us About This Route Here!
How can I learn more about these type of routes?
In order to provide New Buyers with as much information as possible we have put together a quick overview of the industry. Learn More About FedEx Routes Here! For additional consulting services with one of our FedEx route specialists Contact Us Here!