What is the current yearly gross for this route?
Currently this route grosses $901,661 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?
If seeking financing buyer must be able to borrow against personal assets. Seller will not entertain SBA loans. There is no seller financing for this route. 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, vehicle repairs, payroll, scanners, uniforms, and insurance. The current owner spends $748,627 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 18 vehicles that are included with the purchase of the business. Estimated total value of vehicle assets is $168,000! Owner has 3 additional new vehicles available for purchase if desired. 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 $901,661 per year, minus $748,627 yearly expenses as mentioned above gives you the net of $153,034 per year as just an owner/investor 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 acquired these routes to turn them around, and has now completed the turn-around process to make this business healthy and profitable. Seller owns multiple routes in multiple US States, which he will continue to operate and grow.
Where is the Terminal/pickup location?
Trucks are picked up and dropped off at two terminals located in Murfreesboro, and Lawrenceburg, Tennessee. There are generally 6 routes out of Murfreesboro and 5 routes out of Lawrenceburg, TN
How long has the business been established?
The current seller has owned the business 1.5 years.
How many stops does the route driver do a day?
Routes average plus or minus 1000 stops per day between all 11 routes.
How many days a week, and what hours do distributors work?
Employees work 5 days a week Tuesday through Saturday with Sunday, Monday off. Hours of operation are between 7am – 5pm.
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?
This FedEx Business consist of all Home Delivery Routes which require NO back tracking to pick up packages at the end of the day. The current owner simply manages this business 5 days a week. Large territory, which will allow for plenty of future growth! Established & Turn-key! Start making income the week you take it over. Great opportunity for investors! Routes have showed a 30% uptrend per year and owner has solid employees in place! Priced to sell at $599,000. 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!
Chat
