What is the current yearly gross for this route?
Currently this route grosses $480,409 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, payroll, workers compensation, and insurance. The current owner estimates $343,866 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 8 vehicles that are included with the sale of the business. All vehicles will be paid for free and clear. Vehicles include: 2005 Chevy Unicel (118k miles), 2004 Dodge Sprinter ($163k miles), 2005 Chevy Express Van 2500 (248k miles), 2005 Workhorse P700 (114k miles), 2003 Freightliner MT55 (49k miles), 2001 International P1000 (168k miles), 1996 International P1000 (384k miles), and a 1991 International P1000 (168k 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 $480,409 per year, minus $353,366 estimated yearly expenses as mentioned above gives you the net of $127,043 per year as the manager of the business!
How does the selling price of the route get determined?
All FedEx routes determine the selling price of their route by using a 3 multiple of their yearly cash flow/net income, plus assets.
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’s son is going to college… Owner cannot commit to purchasing additional vehicles in the future due to continued growth of the area.
Where is the Terminal/pickup location?
The FedEx terminal is centralized to the current routes located in Nashville, Tennessee. 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 14 years.
How many stops does the route driver do a day?
All routes combined average 600 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. Hours of operation are between 8am – 5pm. Owner simply manages the business and drives from time to time to fill in for employees.
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 has enjoyed a successful working relationship with independent contractors for nearly 25 years. These Ground Routes are a turnkey business with a total of 4 routes, 8 employees, and 8 vehicles in place willing to transfer with the business if given the opportunity. Large and rare opportunity showing a consistent uptrend in growth… Business has a driver/manager in place. Additionally driver/manager is able to work on vehicles to save owner repair expenses. Priced at $389,900! 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!
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