Common FedEx Buyer Questions
Below are actual questions posed by a number of different buyers looking to purchase FedEx routes. For FedEx contractors who are looking to sell, these are some very common buyer questions you should be ready to address…
Can you send me the weekly settlement (revenue) information — at least route revenue by month so I can assess growth?
Is the business absentee, or does the owner operate parts of the business? If so, how many hours per week on average?
I can see how the drivers are compensated, but what is the basis of payment from Fed Ex to the business?
Will the manager stay with the business after the sale?
Will the vehicles be provided free and clear at closing?
For a typical truck, how many miles will it accumulate in a given year?
Are full sized delivery trucks needed for each route?
Where are the vehicles stored?
Is there an office?
What does the manager do?
What does the owner do?
(ISP-specific) What’s involved in a FedEx contract renewal?
What does FedEx do in the purchase process?
Why is the owner selling? Is owner financing available?
Does a prospective buyer need a class A license, or the ability to get a class A license?
What happens if a driver calls in sick, vacation, etc.?
Can the buyer be assured that the contract he receives from FedEx will compensate him at least as much as the seller is being compensated?
Is there a cost associated with transferring routes to a new owner?
Do any of the employees receive benefits; health insurance, vacation, etc.?
Is there Training at FedEx Ground Corp that Buyer is responsible for?
(ISP-specific) Describe the contract negotiation with FedEx. How did your previous negotiations go in years past?
(ISP-specific) With regard to contract negotiations, if you negotiate a longer (say 5-year) contract do they expect that your negotiated rates will be less competitive because the term is longer? Or is this not really an issue?
Can you explain the geography of the routes?
Has it been hard finding and keeping good drivers for these routes? What kind of driver turn-over has there been with drivers?
Have there been any accidents or workman comp claims over the last 3 to 4 years?
Estimated value of vehicles?