What is the current yearly gross for this route?
Currently this route grosses $207,811 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, payroll, scanners, worker’s compensation, vehicle repair and maintenance, and insurance. The current owner estimates a total of $129,904 in expenses and overhead per year.
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 4 vehicles that are paid in full and will be included with the business purchase. Vehicles include: 2012 E350 (132k miles), 2012 Chevy Express 3500 (171k miles, new engine), 2008 Chevy 1500 Van (338k miles) and 1997 Freightliner P700 (502k miles). Total estimated value of these vehicles is $32,000. 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 $207,811 per year, minus $129,904 estimated yearly expenses as mentioned above gives you the net of $77,907 per year!
How does the selling price of the route get determined?
FedEx owners determine the selling price of their route by using a 3 multiple of their yearly cash flow/net income. Routes that are turnkey with a full time manager in place sell for a 4 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?
The owner has other business interests.
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 owner has owned the business for 4 years.
How many stops does the route driver do a day?
The routes combined average 160 stops per day.
How many days a week, and what hours do distributors work?
Drivers work 5 days a week – Monday through Friday for the Ground route and Tuesday through Saturday for the Home Delivery route.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for the route being serviced. Most owners network through the terminal for independent drivers who have FedEx experience that can cover for more 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. Includes 1 full time Ground Route and 1 Home Delivery Route, 2 employees willing to transfer with the business, and 4 vehicles paid in full! Great investment backed by a NYSE company! Priced to sell at $169,000! 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!