Does FedEx require new contractors to have a background in logistics or similar industry in order to qualify?

FedEx personnel approves new contractors on a case by case basis. We often see new contractors approved that have no logistics or similar industry experience.

How long does it take for FedEx to give final approval for a new contractor?

There are several steps in the process to complete the final approval to transfer routes from the seller to the buyer. The process will likely take a minimum of 30 days.

What does ISP represent within FedEx?

Independent Service Provider

What is the term of a FedEx contract?

Typically FedEx contracts are 3-year term.

Is it possible to acquire SBA financing for the purchase of FedEx Routes?

It is possible to acquire SBA financing for the purchase of FedEx Routes, however the process typically requires a minimum of 8 weeks for approval. Sellers often are not willing to entertain a buyer that requires SBA financing. This is determined on a case by case basis.

Is it possible to acquire Non-SBA financing for the purchase of FedEx routes?

Traditional lending channels will often not finance the purchase of FedEx routes. US Route Sales does have a number of financing options available to qualified buyers and often can assist buyers in acquiring financing.

How are FedEx contractors paid?

FedEx contractors are paid as a 1099 contractor on a weekly basis based on the activity for the previous week, plus any period or quarterly bonuses due.

Do FedEx contractors own their vehicles?

Yes, all FedEx contractor vehicles are owned by the contract entity. All service, operating and maintenance cost of the vehicles is also the responsibility of the contractor.

How do you determine the fair value of a FedEx operation?

Determining the value of a FedEx operation is very similar to valuing any other business. It is important to take into consideration cash flow, asset value, market comps, growth opportunity and return on investment. The experienced staff at US Route Sales will work closely with you to determine the value of your business.

Will FedEx allow a contractor to operate as a LLC?

No. In order to operate as FedEx contractor your entity must be a corporation.

Would you like to sell your route?Let our team of experienced professionals help you!
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