What is the current yearly gross for this route?
Currently this route grosses $901,146 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, repairs, payroll, workers compensation scanners, uniforms, and insurance. The current owners estimate $780,494 per year in expenses/overhead.
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 workers’ 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 the business with 9 vehicles that include: (7) 1998 Freightliner Step Vans (approximately 450k – 500k miles), (1) 2002 Dodge Sprinter and (1) 2006 Dodge Sprinter. All vehicles are paid in full. 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 $901,146 per year, minus $780,494 estimated yearly expenses as mentioned above gives you the net of $120,652 per year as just an owner!
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 up to 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?
Owner is retiring.
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 12 years.
How many stops does the route driver do a day?
Routes average 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. Hours of operation are between 9am – 5pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. Additionally, you can network and hire distributors with previous route experience at RouteReliefDrivers.com. Route Relief Drivers is a nationwide network that allows independent route distributors and vacation relief drivers to connect with each other. Each party negotiates its own terms and compensation.
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 form an entity (must be an INC.). 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 consists of all Home Delivery Routes which require NO back tracking to pick up packages at the end of the day. Established & turnkey with full time manager in place! Start making income the week you take it over. Includes 4 Full Time Routes and 4 Supplemental Routes, 9 vehicles and 9 employees willing to transfer if given the opportunity. Priced to sell at $469,000! 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!