What is the current yearly gross for this route?
Currently this route grosses $1,050,000 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 There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, payroll, workers compensation, repairs, vehicle maintenance, scanners, uniforms, and insurance. The current owner estimates $774,460 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 12 vehicles that are paid for in full. Vehicles include: 2001 International 24′ Box Truck (270k miles), 2008 Freightliner P1200 (183k miles), 2013 Freightliner P1200 (108k miles), 2013 Freightliner P1200 (112k miles), 2013 Freightliner P1200 (116k miles), 2013 Freightliner P1200 (126k miles), 2013 Freightliner P1200 (133k miles), 2013 International P1200 (114k miles), 2007 International (329k miles – engine was replaced at 245k miles), 2007 Freightliner P1000 (348k miles), (2) 2017 Freightliner P1000 (12k miles). Estimated value is $582,500! 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 $1,050,000 per year, minus $774,460 estimated yearly expenses as mentioned above gives you the net $275,540 as an owner 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?
Seller is pursuing other business opportunities.
Where is the Terminal/pickup location?
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 4 years.
How many stops does the route driver do a day?
All routes combined average 800 stops per day.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week Monday through Friday with Saturday and Sunday off. Hours of operation are between 8:00am – 5:30pm.
What about vacation time or personal days?
As an independent operator/business owner you are responsible for the route being serviced. In addition there are independent drivers who have FedEx experience that can cover for driver 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. Established and turnkey business, start receiving income the week you take over! Includes 11 full time ground routes. Also included are 12 vehicles that are paid in full, and 14 employees willing to transfer if given the opportunity. Priced to sell at $1,200,000. 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!