What is the current yearly gross for this route?
Currently the route grosses $728,295 per year. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent contractor you are paid by mileage.
Can I finance the route?
If seeking financing buyer must be able to borrow against personal assets. Seller will not entertain SBA loans. There is no seller financing for this route. 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, repairs, payroll, scanners, workers compensation, insurance for your vehicles, vehicle loan payments and liability insurance for your business. The current owner estimates $579,733 per year in expenses/overhead to operate the business.
What type of vehicle do I need?
The purchase includes 3 vehicles/tractors ranging from 2012- 2015. All vehicles are paid in full. Estimated value is $250k.
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 routes is $728,295 per year, minus $579,733 estimated yearly expenses as mentioned above gives you the net of $148,562.
How does the selling price of the route get determined?
FedEx routes determine the selling price of their route by using a 3 multiple of their yearly cash flow/net income, with no manager in place. FedEx Routes with managers in place use up to a 4 multiple of the cash flow.
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 relocating.
Where is the terminal location?
The location of the terminal will be disclosed upon execution of an NDA.
How long has the business been established?
The current owner has owned the route for 1.5 years.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Tuesday through Saturday with Sunday and Monday off.
What about vacation time or personal days?
As an independent operator/business owner you are responsible for the route being serviced. There are currently 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 Line Haul has enjoyed a successful working relationship with independent contractors for nearly 25 years. This business is turnkey with a manager in place! Consist of 3 routes, 3 vehicles and several employees with driving requirements willing to transfer if given the opportunity. Priced to sell at $650,000! 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!