What is the current yearly gross for this route?
Currently this route grosses $130,000 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?
Yes, seller financing with $100,000 down for 5 years at 7.9%. If more financing is needed 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 $30,000 in expenses as a owner/driver, and $30,000 in expenses if operating with an employee.
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 a 2003 International P-1200 Box Truck (225k miles) that is included with the route. Owner estimates its value to be $10,000. 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 $130,000 per year, minus $30,000 estimated yearly expenses as mentioned above gives you the net of $100,000 per year as an owner/driver. Become owner with an employee an net $60,000 per year.
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their route by using a 2-3 multiple of their yearly cash flow/net income, plus assets.
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 is involved with another business.
Where is the Terminal/pickup location?
Located in Barrington, New Jersey. New terminal opening in August 2013 that is 1 mile from the current route. Incredible logistics!
How long has the business been established?
The current owner has owned the business for 9 years.
How many stops does the route driver do a day?
Routes average 130-140 stops per day.
How many days a week, and what hours do distributors work?
Owner works 5 days a week Monday through Friday with weekends off. On average from 7am – 5pm.
How many employees are there?
This business is currently being run as an owner/operator.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. Terminal offers a program for vacation time (2 weeks off per year) Additional weeks can be purchased! 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?
HUGE FedEx Ground Route with great logistics once the new terminal opens! Includes vehicle! Truly positioned for more growth opportunity! Seller admits to having to give away stops to other drivers because his truck is full! This won’t last long! Bring your own driver and just manage the business as an owner! Priced to sell at $159,000 with Seller financing! Motivated Seller bring all cash offers! 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
