What is the current yearly gross for this route?
The routes grossed $115,000 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), gas, repairs, employee payroll, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $53,000 per year in expenses/overhead as an owner/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 2 vehicles. A 2006 E-450 (62k miles), and a 2002 Chevy 2500 10′ box truck. All vehicles will transfer and are INCLUDED with the purchase of the route (valued at $20,000). If you are considering purchasing, leasing or financing a vehicle you can review additional information here.
What is the Gross vs the Net income?
The gross income for the routes is $115,000 per year, minus $53,000 estimated yearly expenses as mentioned above gives you the net of $62,000 per year as an owner/operator, or $25,608 as just an owner and 2 employees (assuming an additional $700 per week in payroll).
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their route by using the yearly gross income, plus assets. Given the 2010 gross and $20,000 in vehicle assets, this route is a steal at $79,800!
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?
Distributor wants to relocate.
Where is the warehouse/pickup location?
Located in Santa Fe, New Mexico 4700 Hart Road.
How long has the business been established?
The current seller has owned the business for 3 years.
How many hours does the route driver work per day?
There is 1 full time route, and 1 supplemental route that are operated part time. The employees work an average of 8 hours a day.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week Monday through Friday with weekends off on the ground routes, and Tuesday – Saturday on the home delivery routes. On average from 7:30 am – 4:30 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 2 employees. Become an owner/operator and the cash flow will have a substantial increase to $62,000 per year! 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 $79,800! 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!
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