What is the current yearly gross for this route?
Currently this route grosses $920,794 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 $599,000 (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 industry, or some type of previous management experience from another industry. Some seller financing may also be available. 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, workers compensation, vehicle maintenance, and insurance. The current owner estimates $736,783 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 10 box trucks and 14 cargo vans that are included with the sale of the business. 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 $920,794 per year, minus $736,783 estimated yearly expenses as mentioned above gives you the net $184,011 as an owner 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 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. Access Accelerated Driver Training Program Here. 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 focusing on other businesses.
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 3 1/2 years.
How many stops does the route driver do a day?
Routes average 900 stops per day combined.
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?
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 6 full time and 5 supplemental routes and 24 vehicles. Full time manager in place. Priced at $799,000! 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!