With the Recent Surge In Fuel Costs, Is it Time to Sell Your Routes?
Drivers in the United States, as in many other countries across the globe, were hit hard by the recent surge in fuel prices. In March, Americans saw record-high prices at the pump, and although those numbers have come down slightly, many are worried that gas prices could rise again.
Not surprisingly, transportation and shipping companies were hit especially hard, in particular smaller and midsize operations whose cash flow felt the impact of the price hikes. As a result, some FedEx contractors may be considering selling their routes and getting a fresh start.
Is selling your route business the right decision?
If you are thinking about selling your FedEx routes because of higher prices at the pump, keep in mind that historically, fuel prices have a tendency to return to normal after periods of instability. That said, if you enjoy being a contractor and are able to weather the storm, your business can still have a profitable year.
However, if you have been considering selling your route business for a while now, whether because you are ready to retire, relocate, or try something new, now may be a good time to get the ball rolling. Because FedEx is typically hesitant to welcome new contractors into the business during the busy peak season (October through December), we recommend starting the sales process by August at the very latest to ensure you find the right buyer and secure the best price for your routes.
From start to finish, the transfer of your FedEx route business may take three to six months to complete. Therefore, the optimal time to initiate your sale is three to six months prior to your ideal closing time frame. The earlier you begin, the less stressful the process will be for you and prospective buyers.
Why work with a qualified broker to sell FedEx routes?
The FedEx route sales process is both complex and extensive. For this reason, it benefits contractors to work with an experienced FedEx brokerage firm that can help to expedite the process by making sure you fulfill the specific requirements at each step to guarantee a smooth and successful sale.
Without the guidance of a professional FedEx broker, you may be at risk of:
- Selling your routes for less than they are worth
- Failing to find the most qualified buyers for your routes
- Poorly presenting your business to potential buyers
- Not having the required documents needed to sell
- Becoming overwhelmed or confused by the process
Call KR Capital and take the stress out of selling your routes.
Rising fuel prices aside, there are many reasons why FedEx contractors may choose to sell their routes. If you have decided the time is right to begin the sales process, contact the team at KR Capital for a free comprehensive route valuation. As the leading FedEx brokerage firm in the nation, we have the resources and expertise necessary to coordinate a smooth and efficient FedEx sale.