What is the current yearly gross for this route?
Currently this route grosses $821,237 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: fuel, payroll, workers compensation, repairs, vehicle maintenance, scanners, uniforms, insurance for your vehicles, and liability insurance for your business. The current owner estimates $667,859 per year in expenses/overhead for the business.
What type of vehicle do I need?
The current owner operates this business with 14 vehicles. Vehicles include: 2015 Mercedes Benz Van, 2009 Chevrolet Van, 2006 Ford Van, 2004 Ford Van, 2004 Ford Van, 2003 Freightliner, 2003, GMC Van, 2000 GMC Van, 2000 Ford Van, 2001 Chevorlet Van, 2000 Dodge Van, 2000 Ford Van, 1999 Freightliner, 1997 Freightliner which is a total estimated value of $188,500.
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 $821,237 per year, minus $667,859 estimated yearly expenses as mentioned above gives you the net $153,378 as an owner of the business.
How does the selling price of the route get determined?
FedEx owners determine the selling price of their route by using a 3 multiple of their yearly cash flow/net income. Routes that are turnkey with a full time manager in place sell for up to a 4 multiple.
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?
Seller has another business that he wants to grow.
Where is the Terminal/pickup location?
Seller will disclose location once an NDA has been executed.
How long has the business been established?
The current seller has owned the business for 2 years. The routes have been established for years prior.
How many stops does the route driver do a day?
All routes combined average 2700 stops per week.
How many days a week, and what hours do distributors work?
Ground Route Drivers work 5 days a week Monday – Friday with Saturday and Sunday off . Hours of operation are between 8am – 5pm. Home Delivery drivers work 5 days a week Tuesday through Saturday with Sunday, Monday off. Hours of operation are between 6am – 5pm. Full time manager in place!
What about vacation time or personal days?
As an independent operator/business owner you are responsible for the route being serviced. In addition there are independent drivers who have FedEx experience that can cover for driver 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?
FedEx Ground has enjoyed a successful working relationship with independent contractors for nearly 25 years. Established and turnkey business, start receiving income the week you take over! Includes 5 full time ground routes. Also included are 14 vehicles that are paid in full, and 10 employees willing to transfer if given the opportunity. Full time manager in place. Priced to sell at $599,000! 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!