Anyone familiar w/ Fedex ground route ownership? (owning, mileage, income)

[ModernHomeNow]

Currently helping a friend review an offer for two routes, two trucks, and two drivers. Offering price is 275k for 100% ownership of routes and equipment. Trying to determine a value on the route. If anyone knows anything about owning transportation routes, your seasoned experience could be helpful.


Thanks....

[Tampaite]

Originally Posted by ModernHomeNow

Currently helping a friend review an offer for two routes, two trucks, and two drivers. Offering price is 275k for 100% ownership of routes and equipment. Trying to determine a value on the route. If anyone knows anything about owning transportation routes, your seasoned experience could be helpful.


Thanks....

What is the annual income from this route? expenses?

[bachgab]

My Husband and I are FXG route owners in another area of the country. Are you reviewing an offer that your friend is making to sell a route or is your friend possibly buying a route? I can't speak to the market value of those specific routes because I don't know the area but a few things to consider in determining value:

- 1099 forms showing income for the last two years
- Settlement statements showing net income after fuel expenses and other business expenses
- Year, Make, Model of vehicles
- Mileage, condition, maintenance records of the vehicles
- Growth in the goegraphic area you are buying

As you can imagine, fuel and truck maintenance and repairs are the major expenses in this business. Also, the route is only as successful as the driver who is servicing the route so buying a route with an existing trained driver helps a lot.

If you have other questions, you can feel free to DM me