What is the current yearly gross for this route?
Currently this route grosses $190,000 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: fuel, vehicle, repairs, payroll, and insurance. The current owner estimates a total of $115,000 in expenses and overhead per year.
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 worker’s 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 business is operated with a 1999 International (estimated 370k miles), and a 1997 International (estimated 388k miles). Owner estimates total value of vehicles to be $24,000. When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
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 $190,000 per year, minus $115,000 estimated yearly expenses as mentioned above gives you the net of $75,000 per year!
How does the selling price of the route get determined?
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) and/or a 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 wants to explore a new business opportunity.
Where is the Terminal/pickup location?
Located in Cocoa, Florida.
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?
Both routes combined average 200 stops per day.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday-Friday with Saturday with Sunday’s off. On average from 7am – 6pm.
How many employees are there?
This business has two employees who are willing to transfer with the business if given the opportunity.
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 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 has enjoyed a successful working relationship with independent contractors for nearly 25 years. Large route territory with multiple zip codes and two full time routes. Routes continue to show growth year over year. New Bonus structure in place starting September to increase annual income by a projected $9,000. Turnkey! Husband and wife owners both have jobs and manage the business only 5-10 hours per week. Priced to sell at $198,000!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!