What is the current yearly gross for this route?
Currently this route grosses $1,088,264 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?
Unfortunately banks will NOT write business loans against route based businesses for several reasons. However if you need funds you can review additional Financing Options Here
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle, repairs, payroll, insurance for your vehicles, and liability insurance for your business. The current owner estimates a total of $878,958 in expenses and overhead per year.
What type of vehicle do I need?
The business is operated with 19 vehicles: 2001 International P1000, (2) 1999 Freightliner P700, 1998 Freightliner P700, 1997 Freightliner P700, 1996 Freightliner P700, 2007 Ford Cargo, 2006 Ford E450, (2) 2005 Freightliner P1000, (2) 1997 Freightliner P1000, 2005 Freightliner P1200, 2005 Mack Straight Truck, 2005 GMC Straight Truck, 2002 Ford Cutaway P1200, 2001 International Straight Truck, 2014 Mercedes Sprinter and 1997 International P1000. These vehicles are all paid in full and are included in the purchase. Estimated value is $350,000.
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 $1,088,264 per year, minus $878,958 estimated yearly expenses as mentioned above gives you the net of $209,306 per year!
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 a 4 multiple or more.
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. Access Accelerated Driver Training Program Here. 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 pursuing other business opportunities.
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 owner has owned the business for 3 years.
How many stops does the route driver do a day?
Routes combined average 1000 stops per day.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday through Friday with Saturday and Sunday off for Ground Routes. Drivers of the Home Delivery Routes work Tuesday through Saturday with Sunday and Monday off. Hours of operation are between 7:30am – 4:00pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. Additionally there are currently independent drivers who have FedEx experience that can cover for more 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 and Home Delivery have enjoyed a successful working relationship with independent contractors for nearly 25 years. Includes 12 full time Ground and Home Delivery routes, 13 employees willing to transfer with the business, and 19 vehicles paid in full! Great investment backed by a NYSE company! Priced to sell at $880,000! 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 with a current FedEx contractor Contact A Specialist Here! For additional consulting services with one of our FedEx route specialists Contact Us Here!