FedEx Ground Routes For Sale South Nashville, Tennessee
FedEx Ground Routes for sale $383,000! Currently grossing $413,515 and nets $141,121 per year as a manager of the business. This route is priced accordingly and is a unique opportunity for the person who can lead and manage employees (great opportunity for current FedEx contractors). Owner has agreed to stay on as a manger if needed (this cost will have to be subtracted from the cash flow if new buyer chooses to hire). Route will need 1-2 employees… Owner agrees to train new employees from the terminal during the transition period to assist new buyer. Includes 4 Routes, 2 vehicles worth an estimated $35k, and some employees in place willing to transfer. Route requires 4 vehicles to operate. Owner has chosen to lease vehicles rather than purchase additional ones. New owner may continue to operate the business as is or purchase new vehicles. Expenses and price have been adjusted accordingly to reflect this option. Territory for this route includes the South Nashville, Tennessee area. Routes numbers are based on 2013 and are already showing an uptrend this year. Also owner just signed a new 5 year contract with increased bonuses!
Frequently Asked Questions:
What is the current yearly gross for this route?
Currently this route grosses $413,515 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 $272,394 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 2 vehicles that are included with the sale of the business. All vehicles will be paid for free and clear. Vehicles include: 2001 International P-1000 (estimated 278k miles), and a 2001 International Box Truck (estimated 250k miles). Estimated $35,000 value! Other owners choose to lease vehicles rather than owning. When considering additional vehicle lease or purchases for FedEx Routes, Routes For Sale recommends Bush 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 $413,515 per year, minus $272,394 estimated yearly expenses as mentioned above gives you the net of $141,121 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. Given the circumstances with owners leaving and 2 new vehicles that need to purchased, this route is priced at a 2.7 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 opportunities.
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 just under 4 years. Route has been established years prior.
How many stops does the route driver do a day?
All routes combined average 320 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 – 5:30pm. Owner simply manages the business.
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. Routes numbers are based on 2013 and are already showing an uptrend this year. Also owner just signed a new 5 year contract with increased bonuses! Priced appropriately at $383,000!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!
Disclaimer: Routes For Sale is a Broker that brings buyers and sellers together. Routes For Sale does not represent, or is not affiliated with the company the distributorship is being offered. All agreements are made between the buyer and seller and not Routes For Sale. It is the prospective Buyer’s duty and obligation to verify the accuracy of the Seller’s representations and if necessary retain attorneys, accountants, business appraisers, or other professionals. The representation of income is based on a current 52 week sales average generated by the efforts of the current owner. As with any business you can make more or less.