What is the current yearly gross for this route?
Currently this route grosses $1,313,188 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?
If seeking financing buyer must be able to borrow against personal assets. Seller will not entertain SBA loans. There is no seller financing for this route. 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, vehicle repairs, payroll, workers compensation, and insurance. The current owner estimates $868,332 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 14 newer vehicles that are included with the sale of the business. All vehicles will be paid for free and clear. Vehicles include: 2008 Freightliner P-700 (85k miles), 2007 Freightliner P-500 (136k miles), 2008 Freightliner P-500 (70k miles), 2008 Chevy Van 3500 (144k miles), 2012 Nissan NV3500 (25k miles), 2012 Ford P-700 (7k miles), 2013 Ford P-700 (2k miles), 2005 Freightliner P-500 (154k miles), 2006 Freightliner P-500 (110k miles), 2005 Freightliner P-500 (123k miles), 2007 Freightliner P-700 (162k miles), 2012 Ford P-1200 (22k miles), 2013 Ford P-700 (2k miles), 2003 26 Ford 650 (126k miles). Estimated $425,000 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 $1,313,188 per year, minus $868,332 estimated yearly expenses as mentioned above gives you the net of $444,856 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 3 multiple of their yearly cash flow/net income, plus assets.
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 investing in another business opportunity.
Where is the Terminal/pickup location?
The FedEx terminal is located in Maryland.
How long has the business been established?
The current seller has owned the business for 11 years.
How many stops does the route driver do a day?
All routes combined average 8,430 stops per week and deliver over 11,000 packages. Drivers work an average of 10 hours per day.
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 for Home Delivery Routes and Monday through Friday with Saturday and Sunday’s off for Ground Routes. Hours of operation are between 8am – 5pm. 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 and Home Delivery has enjoyed a successful working relationship with independent contractors for nearly 25 years. These FedEx Home Delivery and Ground Routes are a turnkey business with a total of 13 routes, 15 employees, and 14 newer vehicles in place willing to transfer with the business if given the opportunity. Owner is the process of acquiring 2 more full time routes and an additional vehicle that will be included and has not yet been factored into the above mentioned gross revenue or cash flow. This route currently has a manger in place, seller operates as an absentee owner. Large and rare opportunity priced at $1,400,000! 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!