FedEx Ground and Home Delivery Routes For Sale – Central Arkansas
FedEx Ground and Home Delivery Routes for sale in the Central Arkansas region for $719,000! Pre-approved for SBA financing with an estimated $110,000 down! Currently routes are grossing $1,002,406 and net $159,764 as an owner/operator. Includes 7 routes – 5 Home Delivery PSA’s and 2 Ground Delivery PSA’s, 13 vehicles paid in full and 12 employees. 2 managers are in place, 1 full time manager and 1 manager/driver. Territory is purchased through independent distributor and contracted through FedEx. Well established route with plenty of growth opportunity. Growing business backed by a publicly traded company on the NYSE!
Frequently Asked Questions:
What is the current yearly gross for this route?
Currently this route grosses $1,002,406 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, this business has been pre-approved for financing of up to $609,000 (amount needed down is variable depending on buyer’s liquidity and credit score). Buyer must also meet the minimum SBA requirements for lending to include: a minimum credit score of 680 and relevant experience in the restaurant industry, or some type of previous management experience from another industry. View SBA loans or more Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, repairs, payroll, scanners, uniforms, vehicle rentals, vehicle maintenance, tags, office expenses, and insurance. The current owner estimates $842,642 per year in expenses/overhead for the business (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase).
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 current owner operates this business with the following vehicles that are included with the sale of the business: 2011 Ford Cargo (487,715 miles), 2012 Chevy Cargo (394,600 miles), 2012 Chevy 12′ Box Truck (404,539 miles), 2013 Chevy Cargo (442,090 miles), 2013 Nissan High Top (352,804 miles), 2013 Chevy Cargo (439,853 miles), 2013 Ford 14′ Box Truck (317,501 miles), 2014 Nissan High Top, 2016 Ford 12′ Box Truck (225,171 miles), 2017 Ford 16′ Box Truck (46,844 miles), 2017 Ford 16′ Box Truck (41,877 miles), 2017 Chevy 12′ Box Truck (64,101 miles), 2017 Nissan Low Top (140,832 miles). When considering additional vehicle lease or purchases for FedEx Routes, Routes For Sale recommends Bush 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 $1,002,406 per year, minus $842,642 estimated yearly expenses as mentioned above gives you the net $159,764 as an owner/operator.
How does the selling price of the route get determined?
FedEx owners determine the selling price of their route by using a multiple of their yearly cash flow/net income. Routes that are turnkey with a full time manager in place sell for a higher 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?
Owner is retiring.
Where is the Terminal/pickup location?
Terminal will be disclosed upon execution of an NDA.
How long has the business been established?
This business has been established for 9 years.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday through Friday with Saturday and Sunday off for Ground Routes. Drivers of the Home Delivery Routes work Tuesday through Saturday with Sunday and Monday off. Hours of operation are between 7:30am – 4:00pm.
What about vacation time or personal days for drivers?
As an independent operator/business owner you are responsible for the route being serviced. In addition there are independent drivers who have FedEx experience that can cover for driver 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 Ground and Home Delivery have enjoyed a successful working relationship with independent contractors for nearly 25 years. Includes 7 Home Delivery routes and Ground routes and 13 vehicles. Priced at $719,000! 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!
Disclaimer: Routes For Sale is a Broker that brings buyers and sellers together. Routes For Sale does not represent, or is not affiliated with the company the distributorship is being offered. All agreements are made between the buyer and seller and not Routes For Sale. It is the prospective Buyer’s duty and obligation to verify the accuracy of the Seller’s representations and if necessary retain attorneys, accountants, business appraisers, or other professionals. The representation of income is based on a current 52 week sales average generated by the efforts of the current owner. As with any business you can make more or less.