What is the current yearly gross for this route?
Currently this route grosses $405,871 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?
Need money? You can review additional Financing Options Here There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, payroll, workers compensation, repairs, vehicle maintenance, scanners, uniforms, and insurance. The current owner estimates $308,998 per year in expenses/overhead for the business.
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 owners operate this business with 3 vehicles that are paid for in full. Vehicles include: 2006 Freightliner (183k miles), 2003 GMC Savana (187k miles), 1995 International (286k miles), 2006 Dodge Sprinter (200k miles), 2002 Chevy Box Truck (290k miles), 2007 International P1000 (90k miles), 1998 International P1000 (230k miles), and a 1998 Ford Box truck (175k miles). Estimated value is $80,000! 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 $405,871 per year, minus $308,998 estimated yearly expenses as mentioned above gives you the net $96,873 as a driver/manager 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 is investing in another business opportunity.
Where is the Terminal/pickup location?
Located in Norfolk, Virginia.
How long has the business been established?
The current seller has owned the business for 20 years. Routes have been established years prior.
How many stops does the route driver do a day?
All routes combined average 450-500 stops per day and the driver works on 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 Saturday and Sunday’s off. Hours of operation are between 8:00am – 5:30pm.
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?
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 3 full time PSA’s and 3 supplementals. Note: This package meet the new FedEx ISP business model requirments of 500 stops per day expected to begin between 2018-2019. Also included are 8 vehicles that will transfer free and clear and paid in full, and 4-5 employees willing to transfer if given the opportunity. Priced to sell at $290,000! 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 Request A Consultation Here!
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