What is the current yearly gross for this route?
Currently this route grosses $465,595 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: fuel, repairs, payroll, and insurance. The current owner estimates $347,424 per year in expenses/overhead.
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 6 vehicles, a 2001 International P-1200 (410k miles), 2002 International 3500 (317k miles), 2005 Freighliner P-1200 (160k miles), 2006 Dodge Sprinter Van (300k miles), 2008 Freightliner P-1000 (200k miles), and a 1992 International P-1000 (657k miles) that are paid for in full and included with the route. Estimated $88,000 value! 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 $465,595 per year, minus $347,424 estimated yearly expenses as mentioned above gives you the net of $118,171 per year as just an owner/manager 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 2-3 year multiple of their yearly cash flow/net income, plus assets. In a lot of cases this equates to rougly 1 year of the gross revenue.
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 health issues.
Where is the Terminal/pickup location?
Located in Nashville, Tennessee.
How long has the business been established?
The current seller has owned the business 2 years.
How many stops does the route driver do a day?
Routes combined average 300+ stops per day.
How many days a week, and what hours do distributors work?
Employees work 5 days a week Monday through Friday with weekends off! Hours of operation on average are between 7am – 5pm. Drivers work on average 10 hours a day.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. Additionally, you can network and hire distributors with previous route experience at RouteReliefDrivers.com. Route Relief Drivers is a nationwide network that allows independent route distributors and vacation relief drivers to connect with each other. Each party negotiates its own terms and compensation.
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?
The transportation industry has a long history of working successfully with independent contractors, and it’s no different at FedEx. FedEx has enjoyed a successful working relationship with independent contractors for nearly 25 years. This FedEx Business consist of all Ground Routes The current owner simply manages this business 5 days a week a few hours in the morning. Business revenue and pricing are based on 2011 documentation. 2012 will be higher based on the current year to date revenue reports. Established & Turnkey! Start making income the day you take it over. 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 Request A Consultation Here!
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