What is the current yearly gross for this route?
The routes grossed $360,000 in 2010. 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: route payment (if you finance), fuel, repairs, employee payroll, and insurance. The current owner estimates $250,000 per year in expenses/overhead as an owner not an operator.
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 route business with 5 vehicles. A 2006 GMC 15′ box truck (125k miles), 2010 Chevy 12′ box truck (65k miles), 2010 Ford EXT Van (26k miles), 2012 Chevy 15′ box truck (5k miles), and a 2007 GMC 15′ box truck (110k miles) that can be used as a spare. All vehicles will transfer and are INCLUDED with the purchase of the route (valued at $100,000). 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 routes is $360,000 per year, minus $250,000 estimated yearly expenses as mentioned above gives you the net of $110,000 per year as just an owner. As an owner/operator your net will increase to $140,000 by eliminating payroll for 1 route!
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their routes by using a standard multiple of 2 times the yearly net, plus assets. Given the $100,000 in vehicle assets included free with this business, this route is a priced to sell at $360,000!
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 has other business interest.
Where is the warehouse/pickup location?
Located in Topeka, Kansas.
How long has the business been established?
Routes have been established for 18 years.
How many stops does the route driver do a day?
Routes average 65-75 stops per day and work an average of 9-10 hours.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week Monday through Friday with weekends off. On average hours of operation are from 7 am – 5 pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. 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?
This FedEx route is priced to sell! As the owner you simply run the business and manage the 4 employees. The current owner considers his employees he best in the terminal. Become an owner/operator and the cash flow will have a substantial increase to $140,000! FedEx Ground includes commercial accounts, home delivery, and are in demand! Limited territory is available. Hurry this route has a HUGE territory, and is a steal at $360,000! 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!
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