It’s a question we receive almost daily. FedEx contractors contemplating the sale of their routes often first want to understand the timeline that goes along with a successful sale. The process of selling a set of FedEx routes has a wide number of variables that contribute to the timeline – both controllable and non-controllable.
For many FedEx contractors, the news of the impending ISP transition has likely been at the forefront of your mind – particularly if your routes fall below the imposed ISP minimums. As most contractors know by now, FedEx has implemented a nationwide ISP rollout that is slated to transition all states to ISP by 2020. For those contractors whose routes fall below the 5 PSA/500 stop minimum, this announcement is even more significant – and perhaps a little unsettling. It should be noted that certain states and terminals have minimums that take exception to this rule. However, the majority of contractors around the country are faced with a very important question to ask: What do I do if my routes aren’t ISP compliant?
With an average of 150+ routes sold each year, we have aggregated a considerable list of buyers for FedEx routes across over 70 transactions. With every transaction, we take note of each buyer’s search parameters in an effort to ultimately find them the exact set of routes they are looking for. Over the years, we have collected data from over 3,000 buyers who are specifically interested in purchasing FedEx routes all across the country. Our database contains the buyer’s financial capability, geographic preference, ground/home/linehaul preference, etc. Continue reading Buyer Demand (by State) For Your FedEx Routes
There’s a lot of work that goes into preparing a set of FedEx routes for sale; compiling financials, valuing the business, marketing to and qualifying buyers, etc. But what happens once the deal is negotiated and the buyer is ready to start FedEx approval? Continue reading FedEx Sale & Transition Checklist
Each quarter, our firm takes inventory of the reported FedEx route sales across the country in an effort to better understand the buyer market and comparable route sales data. Continue reading FedEx Route Sales – Updated Market Comparables
Our firm was selected to be interviewed by www.FitSmallBusiness.com to discuss the different aspects of what it means to be a FedEx contractor. The article touches on the following points:
- Where to find FedEx Routes for Sale
- The minimum requirements you need in order to become a FedEx contractor
- Types of routes you can purchase
- Expected costs and earnings for FedEx route contractors
- Financing options that are available to you to purchase a route
To read the full text of the article, please follow the link below:
As previously noted, FedEx is currently undergoing a nationwide transition to an “ISP” model and contract. Over the next 4 years, FedEx IC contractors will be gradually transitioning to this new contract according to the timeline FedEx has set forth. FedEx contractors who are unfamiliar with the new ISP contract will naturally have many questions about what this new contract will mean for their business. FedEx has put forth a comprehensive workbook which details the the new ISP Agreement and corresponding differences from the old contract.
FedEx announced last month that all contractors would be transitioning to the ISP model by 2020. At the time of the announcement, the details for the transition had not yet been disclosed. Those contractors who were not already operating under the ISP model were made aware that at some point over the next four years, they too would be given a new contract. While these contractors won’t know the details of their contracts until such time as they enter negotiations with FedEx, they now know when their transition window will take place.
Today FedEx announced that it will be rolling out the ISP model nationwide with the goal of converting all states by 2020. We’ll be keeping a close eye on things as FedEx moves forward in the process and will be posting updates as they become available.
If you’ve decided that investing in a FedEx delivery route is a sound option for your career and lifestyle, congratulations! You may have just made the most important financial decision of your life. However, there is still a lot of work to be done before you can begin profiting from this business model. For starters, you may need to secure financing for the routes.