What is the current yearly gross for this route?
Currently this route grosses $517,205 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
What are my expenses and overhead?
Expenses include, but are not limited to: Fuel, vehicle maintenance and repairs, payroll, scanners, and insurance. The current owner estimates $403,580 per year in expenses/overhead.
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 the business with 7 vehicles that are included with the purchase of the business. Vehicles include: (3) 2003 International, 2001 International, 1986 International, 2004 Freightliner, and a 2003 GMC Box truck. All vehicles will be paid in full, free and clear for the new owner. Estimated total value is $110,000! 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 $517,205 per year, minus $403,580 estimated yearly expenses as mentioned above gives you the net of $113,625 per year as an owner of the business with a full time manager in place.
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, with no manager in place. Recent comparable sales with managers in place use a 3-4 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 investing in another business opportunity.
Where is the Terminal/pickup location?
Located in Greenville, North Carolina.
How long has the business been established?
The current seller has owned the business for 12 years.
How many days a week, and what hours do distributors work?
Employees work 5 days a week Monday through Friday with Saturday and Sunday’s off on the Ground Routes. Drivers work on average are 9-10 hours per day.
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?
These FedEx Ground routes are turnkey with a full time manager in place! Start making income the week you take it over. Business currently operates 4 full time PSA’s with 1 supplemental. Currently there are 8 employees, and 7 vehicles willing to transfer with the business. Great opportunity for investors! Priced at $395,000! 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!
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