What is the current yearly gross for this route?
Currently this route grosses an estimated $998,000 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, payroll, scanners, woker’s compensation, vehicle repair and maintenance, and insurance. The current owner estimates a total of $693,914 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 current owner operates this business with a 13 vehicles that are paid in full and will be included with the business purchase. 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 $998,000 per year, minus $693,914 estimated yearly expenses as mentioned above gives you the net of $304,086 per year!
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 owns multiple businesses in multiple states and needs to downsize.
Where is the Terminal/pickup location?
Located in Jacksonville, Florida.
How long has the business been established?
The current owner has owned the business for less than 1 year. Seller is unable to provide tax returns and has based the gross income conservetly using proforma from last year’s peak season. FedEx reports will be provided to validate earnings.
How many stops does the route driver do a day?
All routes combined average 1100+ stops per day.
How many days a week, and what hours do distributors work?
Drivers works 5 days a week Monday through Friday with weekends off. On average from 7am – 5pm.
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 (1 week off per year). Additionally there are currently independent drivers who have FedEx experience that can cover for more 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 has enjoyed a successful working relationship with independent contractors for nearly 25 years. Includes 7 full time PSA and 4 supplemental routes, 12 employees willing to transfer with the business, and 13 vehicles paid in full! Turnkey with a full time manager in place! Priced to sell at $1,200,000! 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!