What is the current yearly gross for this route?
Currently this route grosses $250,000 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), fuel, repairs, employee payroll, vehicles, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $210,000 per year in expenses/overhead with the manager in place.
What type of insurance do I need?
Typically a single owner operator of a route distributorship will need commercial insurance for their delivery vehicle and business liability insurance. Owners with multiple employees will need a multiple vehicle policy and workers’ compensation. Routes For Sale now offers discounts on insurance! Through our size and volume, we have partnered with some of the largest insurance brokers in the nation to offer the best rates. Request Your Free Insurance Quote Here.
What type of vehicle do I need?
The current owner runs this business with 3 vehicles that are included with the route. They include a 2009 E450 17′ Box Truck (90k miles), a 2008 E450 17′ Box Truck (150k miles), and a 2006 GMC 16′ Box Truck (145k miles). Two of the vehicles have an assumable lease and payments have already been subtracted to depict an accurate cash flow. Note: One vehicle needs an estimated $3000 transmission repair. FedEx requires it to be repaired before the transfer/closing of the business. Total estimated value in vehicle assets is $38,000! If you are considering purchasing, leasing or financing a vehicle you can review additional information here.
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 $250,000 per year, minus $210,000 estimated yearly expenses as mentioned above gives you the net of $40,000 per year!
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their route by using two methods. 1) A 2-3 year multiple of their yearly cash flow/net income, plus assets 2) 1 year of the gross revenue. This route is extremely 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 has to relocate.
Where is the Terminal/pickup location?
Located in El Dorado, Arkansas.
What type of routes are these?
The routes are classified as ground routes with 70% of the deliveries commercial and 30% residential.
How long has the business been established?
The current owner has owned the business for 1 year.
How many stops does the route driver do a day?
Routes average 70 stops per day and employees work an average of 8-9 hours.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday through Friday with weekends off. On average from 7am – 5pm.
How many employees are there?
There are 3 full time employees and a manager in place. Employees are willing to transfer with the business if given the opportunity.
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 form an entity (must be an INC.). 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?
Turn Key FedEx business with multiple zip codes and plenty of growth opportunity! Aggressively priced to sell at $59,000. Motivated seller, with only a 1 year ROI! Increase the net by $30k + by becoming an owner/manager of the business! Buyer’s who want to secure this business will be required to place a $3900 good faith deposit in an escrow account and sign a contract for purchase. Escrow deposit will be protected with a 15 day inspection period of the business. If you have further questions 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!
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