FedEx P&D freight Route - FedEx Route For Sale Ottowa and Topeka Kansas
2 FedEx P&D freight Routes for sale $162,000! Protected territories are purchased through independent distributor and contracted through FedEx. Current combined gross for all routes in 2010 was $255,000. The routes require the operation of 2 vehicles and 1-2 employees. This business does NOT require a Class A or CDL License as the owner. The current employees are willing to transfer with the sale if given the opportunity. Territory for this route includes multiple zip codes and cities in the Ottowa and Topeka, Kansas area.
What is the current yearly gross for this route? The routes grossed $255,000 in 2010. 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? 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: route payment (if you finance), gas, repairs, employee payroll, insurance for your vehicles, and liability insurance for your business. The current owner estimates $172,000 per year in expenses/overhead as an owner (non driver).
What type of vehicle do I need? The current owner runs this route business with 2 tractors. A 2005 International 8100 (600k miles), a 2001 Freightliner (700k miles). Additionally the owner will include a 99 Volvo VNT 60 to use as a backup. All vehicles will transfer and are INCLUDED with the purchase of the route (valued at $35,000).
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 routes is $255,000 per year, minus $172,000 estimated yearly expenses as mentioned above gives you the net of $83,000 per year as just an owner. As an owner/operator your net will increase to $123,000 by eliminating payroll for 1 route!
How does the selling price of the route get determined? All FedEx routes determine the selling price of their route by using the yearly gross income, plus assets. Given the $35,000 in vehicle assets included free with this business, these routes are an incredible price at $162,000 (2 year ROI)!
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. Access Accelerated Driver Training Program Here. 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 to the right!
Why is the distributor selling? Owner has other business interest.
Where are the territories located? 1 route is located in Ottowa and Kansas City, and 1 is in Topeka, Kansas.
Where is the terminal location? The Ottowa route delivers from the Lenexa, KS terminal and the Topeka delivers from a Topeka, Kansas terminal.
How long has the business been established? Owner has had the routes 16 years.
How many days a week, and what hours do distributors work? Distributors work 5 days a week Monday through Friday with weekends off. Ottowa route delivery hours are from 1pm - 8:30pm, and Topeka's are 10am - 6pm.
What about vacation time or personal days? Yes FedEx has a vacation program that offers 2 weeks per year. As an independent distributor/business owner you are responsible for the route being serviced. There are currently independent swing drivers who have FedEx experience that can cover for time needed off.
What else should I know? This FedEx P&D freight route is priced to sell! As the owner you simply run the business and manage the 2 employees. Become an owner/operator and the cash flow will have a substantial increase! FedEx P&D freight Routes are the money makers, and are in demand! Hurry these routes have growth potential, and are a steal at $162,000 (2 year ROI)! Hesitate and this opportunity will be gone! 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!
Disclaimer: Routes For Sale is a Broker that brings buyers and sellers together. Routes For Sale does not represent, or is not affiliated with the company the distributorship is being offered. All agreements are made between the buyer and seller and not Routes For Sale. It is the prospective Buyer's duty and obligation to verify the accuracy of the Sellerís representations and if necessary retain attorneys, accountants, business appraisers, or other professionals. The representation of income is based on the most recent years sales revenue generated by the efforts of the current owner. As with any business you can make more or less.