FedEx Ground Routes For Sale – Central South Dakota

FedEx Ground Routes for sale in the Central South Dakota region for $2,000,000! Currently routes are grossing $2,100,356 and net $572,577. Includes 23 routes that are ISP compliant and 28 vehicles. There are 29 employees willing to transfer with the business. A full-time manager is in place. Territory is purchased through independent distributor and contracted through FedEx. Well established route with plenty of growth opportunity. Growing business backed by a publicly traded company on the NYSE!

Frequently Asked Questions:

Price:

$ $2,000,000

Per Month

Cash Flow:

$ $572,577

Per Month

Financing:

$ No

Per Month

Listing:

$ Active

Per Month

FedEx Routes

What is the current yearly gross for this route?

Currently the routes grosses $2,100,356 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, repairs and maintenance, auto and truck expenses, payroll, taxes and licenses, supplies, DOT physicals, accounting and office expenses, legal and professional services, and insurance. The current owner estimates $1,527,779 per year in expenses/overhead for the business (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase).

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 the following vehicles that are included with the sale of the business: 2012 Chevrolet Cutaway P500, 2011 Chevrolet Pick-Up P350, 2011 GMC Cargo P350, 2008 Chevrolet Pick-Up P350, 2014 Nissan Cargo P300, 1999 Chevrolet Pick-Up P350, 2006 Chevrolet Pick-Up P350, 2017 Dodge Cargo P350, 2017 Dodge Cargo P350 Bubble Top, 2019 Dodge Cargo P350, 2018 Dodge Cargo P350, 2009 Chevrolet Pick-Up P350, 2009 GMC Box P400, 2017 Ford Sprinter P300, 2017 Chevrolet Cargo P300, 2019 Dodge Sprinter P350, 2019 Ford Cargo P350, 2009 Chevrolet Pick-Up P350, 2006 Ford Cargo P350, 2019 Ford Cargo P350, 2015 Dodge Pick-Up P350, 2018 Chevrolet Pick-Up P350, (2) 2013 Chevrolet Cargo P250, (2) 2014 Chevrolet Cargo P350, 2019 Ford Cargo P350 Bubble Top, 2020 Chevrolet Cargo P350.  Estimated total value is $348,000. 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 $2,100,356 per year, minus $1,527,779 estimated yearly expenses as mentioned above gives you the net $572,577.

How does the selling price of the route get determined?

FedEx owners determine the selling price of their route by using a multiple of their yearly cash flow/net income. Routes that are turnkey with a full time manager in place sell for a higher 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.

FedEx Routes

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 retiring.

Where is the Terminal/pickup location?

Terminal will be disclosed upon execution of an NDA.

How long has the business been established?

This business has been established for 10 years.

How many days a week, and what hours do distributors work?

Drivers work 6 days a week, taking off Sunday.

What about vacation time or personal days for drivers?

As an independent operator/business owner you are responsible for the route being serviced.  For this business the managers cover routes if drivers need time 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. Includes 23 Ground routes and 28 vehicles. Priced at $2,000,000! 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!

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.

FedEx Ground & Home Delivery
South Dakota
Central South Dakota South Dakota United States
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