What is the current yearly gross for this route?
Currently this route grosses $897,466 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. Please be advised that owner will not entertain seller financing or an SBA loan.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle repairs and maintenance, payroll, workers compensation, scanners, and insurance. The current owner estimates $716,175 per year in expenses/overhead for the business.
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 operates this business with 12 vehicles that are included with the sale of the business. All vehicles will be paid for free and clear. Vehicles include: 2011 GMC Sierra (110k miles), 2009 Chevy Silverado 4×4 box truck (180k miles), 2000 Ford Box Van (80k miles), 2003 Chevy P550 (65k miles), 1996 ford 4×4 van (120k miles), 2001 Ford Utilimaster (130k miles), 2002 Ford Utilimaster (120k miles), 2006 Chevy AWD van (240k miles), 2004 Chevy Box Van (180k miles), 2005 GMC 4×4 Van (171k miles), 2004 GMC P550 (45k miles), and a 2003 GMC Box Van (90k miles). Estimated $100,000 value! 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 route is $897,466 per year, minus $716,175 estimated yearly expenses as mentioned above gives you the net of $181,291 per year as the owner of the business! Manger in place!
How does the selling price of the route get determined?
FedEx routes 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?
Owner is pursuing other business interest.
Where is the Terminal/pickup location?
The FedEx terminal is located in Burlington, Vermont region.
How long has the business been established?
The current seller has owned the business for 10 years.
How many stops does the route driver do a day?
All routes combined average 780 stops per day. Drivers work an average of 10 hours per day.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday – Friday with Saturday and Sunday’s off for ground Routes and Tuesday – Saturday for Home Delivery routes. Hours of operation are between 8am – 6pm.
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?
FedEx Ground and Home Delivery has enjoyed a successful working relationship with independent contractors for nearly 25 years. Routes are established and a turnkey with a total of 9 routes (7 Home Delivery and 2 Ground), 11 employees, and 12 vehicles in place willing to transfer with the business if given the opportunity. Priced to sell at $600,000! 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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