FedEx’s success is based on the business owners who independently own the routes. They deliver and pick up packages which helps the FedEx machines to keep running smoothly. This guide provides you with all you need to know about FedEx route for sale.
FedEx routes for sale are found though business brokerage sites and FedEx. However, recommendations is the easiest way to find FedEx route for sale. You can look for contacts in the shopping or logistics industry to find out if there are FedEx routes for sale in the areas that interest you. Alternatively, you can go online and view brokerage sites to check FedEx lists of routes for sale. You will get a lot of routes listed. There are top sites that have listings of routes for sale.
It is advisable not to purchase a route without riding it. There are some issues that can arise such as vehicles that are not well maintained and employees that are unhappy. Research is vital, you should not just rely on the information provided by the current owner. Majority of people who purchase FedEx routes lack the trucking or driving experience. However, that is fine. Experience is not needed for one to own a FedEx route.
It is best if you have a background in management, shipping and logistics. For you to be an independent FedEx route, it is necessary you sign a contract with FedEx. What this means is that you will not get benefits from FedEx such as retirement plans and health insurance. The primary requirement of working with FedEx is setting up a business as a corporation.
It is important to know the different types of routes you can purchase. Having this knowledge in advance will help you narrow your search. Majority of people opt to purchase multiple FedEx routes. It depends with the circumstances and terminal size. There are rules and pay schedules put in place by FedEx that you have to adhere to in the contractor agreement.
Consider the revenues and profits. Payment for FedEx contractors is in three ways; flat annual rate, payment per load and bonuses for things such as safety and customer service. The profits will depend on the location of the route, the number of loads, the number of employees as well as other factors.
There are different financing options to purchase FedEx routes. In most cases, you will require to take a loan so that you can cover for working capital, storage fees, the cost of equipment and other costs. An SBA loan is preferred by most people who buy FedEx route. You need to have a good credit score, provide collateral and the existing route needs to have potential for cash flow for you to qualify to get a loan.
Purchasing FedEx routes for sale is a great way to get into business. There are a lot of opportunities to help you get the FedEx route that you want. There are also a lot of financing options to help you get started.