What is the current yearly gross for this route?
Currently the route grosses an estimated $865,800 – $1,346,800 per year. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent contractor you are paid by mileage.
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 are To Be Determined. Each individual’s expenses will vary and will include, but are not limited to: fuel, repairs, payroll, office expenses, supplies, taxes/licenses, and insurance.
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?
There are no vehicles included in the purchase. FedEx requires these 2 spots be filled with tractor units that have a sleeper berth and are equipped with Forward Collision Avoidance technology. When considering a 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.
How does the selling price of the route get determined?
FedEx routes determine the selling price of their route by using a 3 multiple of their yearly cash flow/net income, with no manager in place. Recent comparable sales with managers in place use a 3-4 multiple. This business is underpriced!
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 leaving the industry.
Where is the terminal location?
The location of the terminal will be disclosed upon execution of an NDA.
How long has the business been established?
The current owner has owned the routes for 1 year.
How many days a week, and what hours do distributors work?
Distributors work approximately 70 hours a week, typically Tuesday through Sunday.
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 Line Haul has enjoyed a successful working relationship with independent contractors for nearly 25 years. This business is turnkey! Includes 2 unassigned team runs. Priced at $89,000! 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!