What is the current yearly gross for this route?
Currently this route grosses $160,000 per year. Income documentation will be provided to all serious buyers. Please be advised that the seller will not be able to provide income tax returns as he has not filed them for the business yet. However gross income can be verified through reports generated by FedEx and seller keeps a log of expenses.
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, and insurance. The current owner estimates $100,000 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. Both vehicles are 2005 Chevy Workhorses P-500’s that are paid for in full. Estimated $40,000 value! 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 $160,000 per year, minus $110,000 estimated yearly expenses as mentioned above gives you the net of $60,000 per year as an owner 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 2-3 multiple of their yearly cash flow/net income, plus assets. In most cases this equates to 1 year of the gross revenue. This route is under priced!
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.
Where is the Terminal/pickup location?
Located in Baton Rouge, Louisiana.
How long has the business been established?
The current seller has owned the business for less than 1 year. The routes have been established throug FedEx for years prior.
How many stops does the route driver do a day?
All routes combined average 200 stops per day and work an average of 8-9 hours.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week Tuesday through Saturday with Sunday and Monday’s off. Hours of operation are between 8am – 4pm. 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. This FedEx Home Delivery Route is a turnkey business that inlcudes 2 routes, with 2 vehicles, and 2 employees in place willing to transfer with the business if given the opportunity. Seller has communicated that the possibility that more routes may open up in the area in the near future. Priced to sell at $110,000! 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!