What is the current yearly gross for this route?
Currently the route grosses $2,143,340 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?
Yes, this business has been pre-approved for financing of up to $2,055,000 (amount needed down is variable depending on buyer’s liquidity and credit score). Buyer must also meet the minimum SBA requirements for lending to include: a minimum credit score of 680 and relevant experience in the industry, or some type of previous management experience from another industry. View SBA loans or more Financing Options Here
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, repairs, Workers’ Compensation, taxes/licenses, vehicle expenses, and insurance. The current owner estimates $1,643,627 per year in expenses/overhead to operate the business (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase).
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 this business with the following vehicles that are included with the sale of the business: (3) 2015 Volvo VNL Sleeper, 2011 Volvo VNL Day Cab, (4) 2017 Volvo VNL Sleeper and (4) 2015 Volvo Day Cab. Estimated value is $600,000. 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 routes is $2,143,340 per year, minus $1,643,627 estimated yearly expenses as mentioned above gives you the net of $499,713.
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 its competitor UPS. View The Video Here.
Why is the distributor selling?
Owner is retiring.
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 11 years.
How many days a week, and what hours do distributors work?
FedEx operates 7 days per week. Route owner’s hours will be based on what is required to oversee the operation.
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?
FedEx Ground Line Haul has enjoyed a successful working relationship with independent contractors for nearly 25 years. This business is turnkey! Includes 6 routes and 12 vehicles. Priced at $2,300,000! Contact Us About This Route Here!
How can I learn more about these types 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!