What is the current yearly gross for this route?
Currently this route grosses $681,010 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?
Need Money? You can review additional Financing Options Here for small business startup loans based on your personal credit history. Please be advised that owner will not entertain seller financing, SBA loans. If seeking financing buyer must be able to borrow against personal assets.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle maintenance and repairs, scanner, uniforms, payroll, workers compensation, and insurance. The current owner estimates $557,368 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 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 9 vehicles that include: 2009 Chevy Express 1500, 2007 Dodge Sprinter, 2008 Ford E350, 2009 GMC C3500, (2) 2009 GMC Savana 1500, 2011 Chevy Express 1500, 2005 Chevy Express 1500, 2006 Ford E350. All vehicles convey with the purchase and will be paid for free and clear. Estimated value is $72,000. 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 $681,010 per year, minus $557,368 estimated yearly expenses as mentioned above gives you the net of $123,642 per year as the owner/manager of the business.
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?
Owner is pursuing new business opportunity.
Where is the Terminal/pickup location?
The FedEx terminal is centralized to the current routes. Seller will disclose location once an NDA has been executed.
How long has the business been established?
The current seller has owned the business for 3 years. Routes have been established years prior.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday through Friday with Saturday and Sunday’s off for Ground Routes. Hours of operation are between 8am – 5pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. Additionally there are currently independent drivers who have FedEx experience that can cover for 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. These FedEx Ground Routes are turnkey with a full time manager in place! Includes 5 full time PSA Routes, 9 vehicles, and 7 employees in place willing to transfer with the business if given the opportunity. New owner may employ an additional employee of hire relief drivers to cover for employees who need time off if they do not intend to drive. Priced to sell at $349,900! 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!