Why Sell Your FedEx Routes?
As a FedEx contractor, there’s a good chance you remember the exciting experience of buying your routes.
Fast forward to today, however, and you might be thinking about letting them go. If this sounds familiar, start by considering why you want to sell your FedEx routes, to begin with. By getting clear on your reasons, you can feel confident as you move forward.
Here are some of the most common reasons why FedEx route owners sell their businesses.
1. You are relocating.
Life is full of changes, and sometimes, those changes involve relocation. But fortunately, FedEx Ground delivers throughout the country. This means you can sell your existing route business and buy a new one elsewhere.
If you plan to relocate, KR Capital can assist you. We have an extensive database of nearly 10,000 qualified FedEx buyers nationwide. Concurrent with the sale of your current set of routes, we can also help you find a route in the area where you are locating. Our team will ensure that your transition is seamless and efficient.
2. You want to retire.
Another common reason is retirement. If you’re ready to retire, you may want to sell your FedEx route to someone who has more energy and stamina for the job. Not only will this allow you to focus on other areas of life, but the sale of your FedEx business may provide the retirement nest egg you’ve been working towards.
3. You want to focus on something else.
It’s normal for your interests and goals to change over time. Therefore, you might want to sell your FedEx route in order to pursue other endeavors. This might entail personal projects, traveling, or starting a different business entirely. Whatever the reason, selling your route will allow you to move on accordingly.
4. You don’t want to adapt to the new model.
FedEx has historically used the Independent Contractor (IC) model. However, business models naturally come and go, and the IC is no exception. In 2016, FedEx started moving contractors to an Independent Service Provider (ISP) model. This transition, which changes how each route is operated and organized, is set to be fully completed by May 2020. Moreover, by 2023, FedEx will require all contractor fleet vehicles to be 2018 models or newer.
Because these changes call for time and money, some contractors might be reluctant to complete the transition. If you’re in this boat, selling your FedEx route is an ideal choice.
5. Your business isn’t performing well.
In reality, owning a business isn’t for everyone. Perhaps you’re having trouble retaining employees or properly maintaining your vehicles. Or, maybe you’re finding it difficult to run daily operations, or the experience isn’t what you expected. The result of these scenarios may manifest itself in poor business performance. In this case, there’s nothing wrong with passing on your route to a buyer who may be a bit more business savvy.
6. You don’t want to scale.
As ISPs grow alongside FedEx, route owners must manage more employees and purchase more vehicles. This rapid growth also calls for higher levels of responsibility and deeper financial commitment. Handling this type of growth isn’t suitable for everyone, though. You can sell your FedEx route if you are unwilling to take on these business challenges.
Of course, There Isn’t a Right or Wrong Reason to Sell Your FedEx Route
When you ultimately decide that it’s time to form an exit plan, contact KR Capital at (503) 664-0753. Our firm can help you take the proper steps to ensure an efficient and confidential transaction. We look forward to hearing from you!