What is the current yearly gross for this route?
The routes grossed $195,000 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. The current owner estimates $85,000 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 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 runs this route business with 2 vehicles. A 2004 Freightliner (240k miles), a 1998 Inter P-1000 (161k miles). All vehicles will transfer and are INCLUDED with the purchase of the route (valued at $29,000). When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the routes is $195,000 per year, minus $85,000 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 $142,000 per year!
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 low overhead and high net, plus vehicle assets, this route is a steal at $195,000!
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 is transitioning to a new career.
Where are the territories located?
The routes are located in Farburg Marigny and the Garden District, in uptown New Orleans, LA.
Where is the terminal location?
Located in St. Rose, LA.
How long has the business been established?
The current seller has owned the business for 6 years.
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 7:30 am – 4:30 pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. There are currently independent drivers who have FedEx experience that can cover for time needed off, or you can opt for 1 week off per year through the company at a nominal weekly fee (estimate $30 per week).
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?
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! 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 $195,000! 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!