looking to purchase one route as a owner/operator

[2350]

Iam looking to buy one route and be owner/operator. I kow you need a CDL and have a buisness licencse, and be registered as a corporation, and that you can apply to buy a route at a local terminal or find them online.
I need to know more about the details about purchasing routes, Iam not looking to purchase multiple routes, just a single one. So what should I be looking for as a owner/operator when purchasing my first route with fedex.

 

[bbsam]

Iam looking to buy one route and be owner/operator. I kow you need a CDL and have a buisness licencse, and be registered as a corporation, and that you can apply to buy a route at a local terminal or find them online.
I need to know more about the details about purchasing routes, Iam not looking to purchase multiple routes, just a single one. So what should I be looking for as a owner/operator when purchasing my first route with fedex.

First thing I would do is find a local contractor and sit down and talk to him, preferably not one selling his route. There are significant differences state to state.

second, get a copy of the contract and take it to a lawyer and pay him to interpret it for you and advise. This is an investment so view the lawyer as part of that investment.

 

[White Line]

Iam looking to buy one route and be owner/operator. I kow you need a CDL and have a buisness licencse, and be registered as a corporation, and that you can apply to buy a route at a local terminal or find them online.
I need to know more about the details about purchasing routes, Iam not looking to purchase multiple routes, just a single one. So what should I be looking for as a owner/operator when purchasing my first route with fedex.

You mentioned the need for a CDL, so is this a local P&D tractor trailer route, or a linehaul run that you are looking at, if not and it's a P&D package van route or straight truck route you shouldn't need a CDL for those types of routes unless the straight truck exceeds a certain gross weight and has air brakes requiring a class B license.

 

[HomeDelivery]

Y...and it's a P&D package van route or straight truck route you shouldn't need a CDL for those types of routes unless the straight truck exceeds a certain gross weight and has air brakes requiring a class B license.

does that include the yellow air parking brake switch?

i had to drive a Ground straight truck 26' one monday & it had that switch... ugh, that wasn't fun driving around residential suburbia to deliver out of that. non-CDL here

as long as it's under 26,000 lbs, you don't have to carry one

 

[White Line]

does that include the yellow air parking brake switch?

i had to drive a Ground straight truck 26' one monday & it had that switch... ugh, that wasn't fun driving around residential suburbia to deliver out of that. non-CDL here

as long as it's under 26,000 lbs, you don't have to carry one

Well that's a good question HD because I am not even really sure, what is for certain is the 26001 lbs and over with air brakes does require a class b, but the air brake question even has me stumped, I have heard some people say that if the vehicle has air brakes or air over hydraulic brakes and is 26000lbs and under weight rating that a air brake endorsement is required on the license even if the driver license is class c, but other people claim that endorsements for class c licenses don't exist, so who knows, I would say as long as that straight truck you are driving is a rated for 26000lbs and under you should be good, but you may want to check on it to be sure.

 

[Operational needs]

Well that's a good question HD because I am not even really sure, what is for certain is the 26001 lbs and over with air brakes does require a class b, but the air brake question even has me stumped, I have heard some people say that if the vehicle has air brakes or air over hydraulic brakes and is 26000lbs and under weight rating that a air brake endorsement is required on the license even if the driver license is class c, but other people claim that endorsements for class c licenses don't exist, so who knows, I would say as long as that straight truck you are driving is a rated for 26000lbs and under you should be good, but you may want to check on it to be sure.

There are hazmat endorsements for a class c.

 

[HomeDelivery]

... I would say as long as that straight truck you are driving is a rated for 26000lbs and under you should be good, but you may want to check on it to be sure.

yea, most of Ground's P&D workforce doesn't need a CDL... however, some transport Hazmats... but only express vehicles have those safety placards on the sides of their vans <shrugs>

it was common sense for me to use that parking brake though

not that hard to read it, eh?

glad i wasn't that other HD guy who forgot to pull the parking brake handle

 

[White Line]

There are hazmat endorsements for a class c.

Yes and that makes sense because like HD pointed out the Express vans have placard carriers on them which I have noticed also, so I don't doubt that there is a hazmat endorsement for class c, although on my home states DMV website if you go to the hazmat endorsement section it states in bold lettering that prior to TSA finger printing to attain a hazmat endorsement you must have a CDL or a permit for a CDL so it's kind of misleading, but hey when comes to the DMV anything is possible.

 

[White Line]

yea, most of Ground's P&D workforce doesn't need a CDL... however, some transport Hazmats... but only express vehicles have those safety placards on the sides of their vans <shrugs>

it was common sense for me to use that parking brake though

not that hard to read it, eh?

glad i wasn't that other HD guy who forgot to pull the parking brake handle

Yeah I saw that ha ha, look I am not going to say that I haven't screwed up in my career because if I did I would be a lie, but that guy sure has me beat by a long shot, glad no one was hurt in that one.

 

[Route 66]

Yeah I saw that ha ha, look I am not going to say that I haven't screwed up in my career because if I did I would be a lie, but that guy sure has me beat by a long shot, glad no one was hurt in that one.

yes, it's just a shame the most recent highly-publicized incident involving a FedEx vehicle didn't result in little more than a slightly banged-up van, an embarrassed courier and a few excited dogs.

 

[White Line]

yes, it's just a shame the most recent highly-publicized incident involving a FedEx vehicle didn't result in little more than a slightly banged-up van, an embarrassed courier and a few excited dogs.

Yeah I saw that on the thread by Don't Throw and I just watched the 11 o clock news, horrible to say the least, looks like it was one of FedEx Freights rigs.

 

[UpstateNYUPSer(Ret)]

yes, it's just a shame the most recent highly-publicized incident involving a FedEx vehicle didn't result in little more than a slightly banged-up van, an embarrassed courier and a few excited dogs.

Obviously you have yet to hear about this one:

 

[oldngray]

Obviously you have yet to hear about this one:

http://www.washingtontimes.com/news/2014/apr/11/5-students-5-adults-killed-fiery-fedex-truck-crash/

 

[Route 66]

Obviously you have yet to hear about this one:

What did you think I was referring to?..obviously you didn't comprehend my meaning.

 

[HomeDelivery]

yes, that 's tragic (on another thread) but, back on topic:

did you verify that you're in a IC state or can your contractors tell you if they're going to be shifted to become ISP?

http://www.buildagroundbiz.com/Inde...x_Ground_Independent_Contractor_Business.aspx

read all those links on that page


& decide if the extra headaches of maintaining your own vehicle, renting the scanner/powerpad, paying for weekly car washes, forsee a breakdown & have the # for the local Budget/Avis/Enterprise/Ryder rental just in case... etc.

i didn't want to do so because i thought there was going to be a shift to ISP in my state & i am starting to see some of the takeaways from contractors nowadays

 

[HomeDelivery]

soooooooooo, here's an example of a craiglist posting in FL (they posted it in the northeast for some reason...)
-----------------------------------------------------------
**** Fed Ex Routes for sale in warm sunny Florida**** - $315000 (Orlando)

Two very profitable routes and one supplemental route out of the Orlando hub. This is a perfect opportunity for a current or former FedEx owner/driver or investor. Areas are fast growing. Excellent drivers and current equipment.

2013 Gross: $292K. Estimated 2014 Gross: $325K.

2013 Net for Owner/Driver: $145 K.
Owner/Manager + three drivers: Nets $110K.
Absentee Owner + Manager and three drivers: Nets $70K.

Estimated 10% -15% increase for 2014.

Earn $$ from the first week. Earn 20% - 40% per year on your investment. No down side. Asking $315K. Inquire now.

------------------------------------------------------------

so is that asking too much for 2 routes & 1 supplemental?

 

[M I Indy]

soooooooooo, here's an example of a craiglist posting in FL (they posted it in the northeast for some reason...)
-----------------------------------------------------------
**** Fed Ex Routes for sale in warm sunny Florida**** - $315000 (Orlando)

Two very profitable routes and one supplemental route out of the Orlando hub. This is a perfect opportunity for a current or former FedEx owner/driver or investor. Areas are fast growing. Excellent drivers and current equipment.

2013 Gross: $292K. Estimated 2014 Gross: $325K.

2013 Net for Owner/Driver: $145 K.
Owner/Manager + three drivers: Nets $110K.
Absentee Owner + Manager and three drivers: Nets $70K.

Estimated 10% -15% increase for 2014.

Earn $$ from the first week. Earn 20% - 40% per year on your investment. No down side. Asking $315K. Inquire now.

------------------------------------------------------------

so is that asking too much for 2 routes & 1 supplemental?

Forget the amount, I like the "No down side" statement. Then why sell? Just be an absentee and collect the residual. Areas are fast growing? Or growing fast? If so, why isn't supplemental a route? Even the pro scammers, like bbsam, admit there are no guarantees. Any astute business person would see thru this Bull, guess seller is looking for someone with an IQ as low as theirs, not smart enough to sell the "control" they were sold. Guess they figure current/former is dumb enough to do it again, now that's perfect.

 

[STFXG]

so is that asking too much for 2 routes & 1 supplemental?

315k for a route that GROSSES 292k... yeah. A bit much. 3 trucks on two routes. My guess is he NETed around 130k last year. Depending on trucks and with completely guessing on numbers I'd say his business is worth around 150k.

 

[HomeDelivery]

he posted his net earnings though that ranges from $70 - $145 K...

anyways, here's another craigslist posting:

FEDEX GROUND ROUTE FOR SALE - $95000

Currently selling 1 FEDEX GROUND route servicing the xxx area, with truck included.
Gross $ 87,000

why are they all selling at a higher cost than their gross/net earnings?

 

[STFXG]

Start high. Fishing for a sucker. They come down when they get serious about selling.


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