People, I am looking to enter in fedex business by buying routes. I would be very interested in get in contact with sellers and evaluate the options. I am interest routes from usd 200k to 600k asking price, reasonable profit regarding the gross incomes. Financing options like SBA loans or sellers financing are welcome. Any help or recommendation will be very appreciated
Buying fedex P&D routes - wanted to contact sellers.
- Thread starter Elcanario
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- buying fedex routes
Operational needs
Virescit Vulnere Virtus
Buying a Fedex Ground Route | FedEx Discussions
Looking to buy a fedex home delivery route as a new biz opportunity. Trying to get my head around a few things here. I would be willing to work in the biz as needed and probably drive a route for the first year so I could learn the work end, then just be a backup with a manager. Naturally, my...
www.browncafe.com
Start here.
Operational needs
Virescit Vulnere Virtus
Why? Because he wants someone else to do all his legwork?
dezguy
Well-Known Member
Well there's that...
I'm just waiting for this thread to devolve into a pissing match about politics.
If there is any place on the internet for that to happen, the FedEx section of BC would be the place.
burrheadd
KING Of GIFS
Lol
@It will be fine can help you out....
Tks! I just sent him a message.
You're welcome
"What A Fool Believes"... The Doobie Brothers. Let's put it this way kid. Just make certain that you're using somebody else's money and someone else's collateral and not your own. Just remember you're buying that route and it's 1 year contract with the expectation that it's going to go up in value. Trouble is you're buying from somebody who is equally convinced that it's going to go down in value. And the fate of every dollar you've got tied up in the venture whether it's yours or your dad's is entirely in the hands of somebody else.
Operational needs
Virescit Vulnere Virtus
Annnnd just like clockwork.....
McFeely
Huge Member
We haven’t gotten to the smelter bait, stolen motor freight, or 3 drivers for every route bit yet.
Operational needs
Virescit Vulnere Virtus
We haven’t gotten to the smelter bait, stolen motor freight, or 3 drivers for every route bit yet.
You might not even be getting one year of contract. All the purchase actually buys you is a right to servive a cetain area, with no guarantee of renewal even if you are perfect. If the terminal manager has a daughter marrying a lazy bum who needs something to do, the manager can wait until your contract expires and literally give it to his son-in-law if the manager is in tight with the regional manager. You would have zero recourse, except to maybe sel the physical assets- the trucks- to the proud new owner. All the drivers you paid, trained, and relied won't have any problem moving to the new owner, and fedex can literally cancel your contract any time they want. If they cancel without cause(expiration is valid cause) you are only entitled to the amount of lost profit- not lost revenue- from the time they fire you until whne the contract was due to expire. Say you make $4000 a month in profit based on your tax return.. And say they cancel your contract 6 weeks early. You would be entitled to pay about $4000 for arbitration to win back $6000. And you would need to make payments for insurance and purchase of the vehicles at least. And because of taxes, you might actually take home $6000 a month, but your taxes only show $4000 a month. Fedex didn't used to allow you to have a lawyer in arbitration, or in negotiations of your contract. If you do buy, DO NOT make any of the purchase in your personal name. Create a corporation, become a shareholder, and buy the contract, trucks, etc all in the name of the business. Do not invest personally more than you can afford to lose. If the contract expires in 2 months, you do have a good chance at 2 months profit, but if it expires in less than a year, you need to inquire about extending it before you buy. Knowing if the trucks have been fully depreciated already can be important. If possible, buy the seller's corporation if the contract is in the name of the corporation. Maybe break the sale into buying 25% at a time, over a couple yearsIf you buy 25%, make sure you have the right to control, and thec right to purchase the remaining % later at a set price. Much better than paying interest on a complete purchase with the seller carrying back a loan. You can reduce your risk greatly while you learn, and can walk away only losing a tiny part. You can even get a loan to purchase the 25%, or maybe 80% of the 25%, and risk almost nothing.
How about the titanium golf club hip replacement?We haven’t gotten to the smelter bait, stolen motor freight, or 3 drivers for every route bit yet.
It will be fine
Well-Known Member
Purchasing the existing corporation is a terrible idea. You’d be purchasing any outstanding liabilities of that corporation. I wouldn’t trust my fate to whatever the previous owner did.
An outstanding job explaining to the prospective buyer just how treacherous the venture can be due entirely to the matter by which Ground constructed it. And one thing has never changed over the years and not likely to ever change as long as Fat Freddy can get away with it. .......... NOTHING"S BINDING !. That fact cannot be emphasized strongly enough.
Here's a decent example. We had this kid come in at the terminal. He was a T/T owner operator (not RPS/FXG) tired of getting his rates cut. There was a route opening up and we all told him ..."don't do it", because we knew what was coming.. Walmart Dist. was opening up 35 miles down the road He wouldn't listen he took that P&D route. Starts out with a P1000 then when WM opened up he buys a huge pull behind trailer. The biggest one I ever saw. So he starts hauling WM down from the terminal. Well, what happens? He gets his CZ cut in half. A few months later WM starts going in a trailer for LH to take down . So there he was , a trailer he was making payments on but no longer had use for and a core zone that was cut in half and never did go back up despite him being a world class kiss up. All we could say to was..... "nothing's binding". He was out of there soon afterward. Fat Freddy has and will continue to whatever best serves him and the fact that you were required to invest money means nothing to him.
McFeely
Huge Member
But that’s not what you told the guy you sold your route to, right?
Fred's Myth
Nonhyphenated American
I was referring to new people who were coming in off the street. The individual you're talking about said this: "I don't really want any additional routes but I have to have them just to keep the one route I drive myself and all I ask is that the additional routes can cover their own expenses".
