What is the current yearly gross for this route?
Currently this route grosses $589,753 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, payroll, workers compensation, scanners, uniforms, insurance for your vehicles, and liability insurance for your business. The current owners estimate $406,014 per year in expenses/overhead.
What type of vehicle do I need?
The current owner operates the business with 9 vehicles: 2017 GMC 16ft Box truck (brand new); 2016 Ford 14′ Box E350 (13,600mi); 2015 Chevrolet 14′ Box 3500 (54,355mi); 2014 Chevrolet 14′ Box 3500 (71,154mi); 2014 Chevrolet 14′ Box 3500 (37,500mi); 2013 Ford 12′ Box E350 (121,764mi); 2012 Nissan Hightop Cargo Van (111,643mi); 2008 Ford 12′ Box E350 (250,000mi); 2006 Ford 12′ Box E350 (271,068mi). All vehicles are paid in full. Estimated total value is $201,000. 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 $589,753 per year, minus $406,014 estimated yearly expenses as mentioned above gives you the net of $183,739 per year!
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.
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 relocating due to other business ventures.
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 16 years.
How many stops does the route driver do a day?
Routes average 1100-1200 stops per day combined.
How many days a week, and what hours do distributors work?
Employees work 5 days a week Tuesday through Saturday with Sunday, Monday off.
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?
This FedEx Business consist of all Home Delivery Routes which require NO back tracking to pick up packages at the end of the day. Established & Turnkey! Start making income the week you take it over. Includes 5 Full Time Routes and one supplemental route, 9 vehicles and 8 employees willing to transfer if given the opportunity. Full time manager in place. This route will be ISP compliant when this is introduced to the area within the next year. Priced to sell at $750,000! 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!