Buyer FAQ

Below Is A List Of Common Questions We Often Receive From FedEx Buyers.

Either 1 to 2 years. Contract renewal comes down to two main points, safety and service. 

P&D Contractors negotiate their rates with FedEx. Factors that go into the rates include stop density, number of packages, stops, pickups, mileage, brand promotion and service charges. Linehaul contractors are paid per mile. We will take the time to walk you through each settlement of the listing you’re interested in and explain each one. 

No, you do not. You just have to find an opportunity with at least two runs. 

It depends on each listing. Our rule of thumb is to advertise the business on how the current seller has been running the business. There are lots of route owners who live out of state from their routes. 

Just like a retail or restaurant business, you will have a core group of drivers who are full-time employees working M-F or T-S and several employees who will work part-time to cover the routes on the other days. This allows you to get very creative with the work schedule. A current contractor has had huge success with hiring police and firefighters part-time to cover certain days. 

Currently, there are 50 million parcels handled every day by every major carrier. In 10 years, that number is projected to double to 100 million parcels per day. This is the reason why FedEx and other carriers are ramping up 7 days a week operations to get ahead of the growth. 

FedEx Ground does not want a single entity to own more than 10% of a terminal's volume. Some Contractors go beyond that scale to maybe 12% or 15%, but special permission has to be granted. You could own 10% in one terminal, and 10% at another terminal, and so on. 

It’s a good idea to have your corporation formed and your financials in order. We require our Buyers to show us proof of funds to validate your financial situation. We can work with your lender, or we can introduce you to several of our lenders to see what the best fit will be, if you are needing to take out a loan.

Most lenders require 10% to 20% down of the purchase price. Conventional loans’ down payments are between 20% to 50% down. On average, SBA loans take 90 days to close. 

Typically, you cannot. Please verify with your lender!

The Contract requires Contractors to withhold payroll taxes and pay drivers through a W2.

As of late 2019, there is a wave of baby boomers retiring from the industry. Besides, the ISP transition caused a lot of Contractors to sell portions of their businesses. We expect fewer Sellers on the market in 2020 and moving forward. 

Peak season technically starts the Tuesday after Thanksgiving until December 24th. Contractors start to hire their seasonal drivers starting in October and will begin training them in November. We see another small wave after the holidays from people using their gift cards to order their gifts. After January 15th, it typically subsides. This is also a great time of the year to reorganize your staff. A lot of our superstar drivers started as seasonal help during the holidays! 

P&D Contractors are required to own routes that have 5 routes or 500 stops per day. Linehaul contractors must own at least 2 runs.