What is the current yearly gross for this route?
Currently this route grosses $363,198 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?
Yes, seller financing with $175k down! If you need more money, you can review additional Financing Options Here
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle maintenance, payroll, scanners, uniforms, workers compensation, insurance for your vehicles, and liability insurance for your business. The current owner estimates $239,007 per year in expenses/overhead for the business.
What type of vehicle do I need?
The current sellers operates 7 vehicles that are included with the sale of the business: 2007 Ford Cutaway P550, 2003 International, 2000 Ford 650, 2003 International P1000, 1998 International P1000, 1995 International, and a 1993 International. Total estimated value of $50,000! All vehicles will be paid in full at closing.
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 $363,198 per year, minus $239,007 estimated yearly expenses as mentioned above gives you the net of $124,191 per year as an absentee owner of the business!
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. Recent comparable sales with managers in place use a 3-4 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?
Owner is retiring.
Where is the Terminal/pickup location?
Located within the mentioned description and will be disclosed by seller upon execution of an NDA.
How long has the business been established?
The current seller has owned routes through FedEx for 28 years.
How many days a week, and what hours do distributors work?
Drivers and managers work 5 days a week Monday Through Friday with weekends off for ground Routes. Hours of operation are between 8am-5pm.
What about vacation time or personal days?
As the owner you are responsible for the routes being serviced. Additionally there are currently independent drivers who have FedEx experience that can cover for time needed off. Current owner covers employees while on vacation.
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 28 years. These FedEx Ground Routes are close to the terminal reducing operating expenses, includes: 3 Routes, 7 vehicles, and 5 employees in place willing to transfer with the business if given the opportunity. Seller financing with $175k down! Priced to sell at $349,000! 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!