Super Fast Growing FEDEX Routes Bundle, All NEW TrucksListing: #SV00100
About this Business for sale in Greater San Francisco Bay AreaSuper Fast Growing FEDEX Routes Bundle, All NEW Trucks
This fast-growing FEDEX delivery business comes with 40 routes and 45 Trucks. Most of the trucks are relatively newer model years ranging from 2014 to 2018. The new contract that started in April is for 2 years and it’s showing significant increase in FEDEX settlements averaging $120,000 per week so the expected revenue for 2020 is 5.5M+. The increase in revenue is primarily due to 100% overlap mandate for all FEDEX Contractors to have 100% overlap of home delivery and ground routes. The owners have 20+ years of experience in FEDEX routes and that has helped to negotiate a very good new contract starting April 2020. The buyer needs to have about $750+ cash to make this deal work. The trucks have about loan $2.3M in loan balances and they can be assumed by the new owner. The business has routes from 2 FEDEX Terminals.
Digital eCommerce growth accelerates the growth of this business as the retailers want to deliver more products to customers faster. These routes are exclusive to the business so there is no competition within FEDEX. However, the business success depends on the financial strength of FEDEX Corp. Estimated market value of the truck is about $2.3M+ with each of the trucks averaging about $60K. Well-trained staff with one full-time managers make it easier for the new owner to make this transition a smoother experience.
The business has 40 routes with zip codes that are prime technology hubs with primarily residential homes. The delivery is from warehouse to resident homes and businesses within these zip codes. All trucks are parked in a terminal with free rent, so the major expenses are only driver salary, fuel, workers compensation, repairs and maintenance.
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.