Ownership and Approval Process
Congratulations! You’ve completed due diligence and are ready to move to the next step of purchasing your routes. This is where the FedEx approval process starts and where the buyer will need to be very organized to get the deal to the finish line. Don’t worry! We will help you ensure it’s a smooth transition!
Most of the FedEx transactions are asset sales. The entity must be set up as an S-Corp or C-Corp, as LLCs are prohibited. In addition, you will need the following:
- Initial Service Provider Profile (Printed From CDAS)
- Initial Service Provider Candidate Initial Compliance Disclosure Certification
- Certificate of Incorporation
- State Unemployment number verification
- State Employer Tax number verification
- E-verify Company information page
- Initial documentation reflects good standing with states in which services are performed
- Initial Request For Information (RFI)
This information will be submitted to the Senior Manager for your interview. The first two steps are completed at the station.
The interview typically lasts around an hour and covers a wide range of topics regarding the transition of route ownership. They want to ensure you have taken the time to read the contract and learn about the business. This is a great time to ask them questions and understand how the local station operates. The dress code is business casual, and you must bring two forms of ID, the checklist documents mentioned above, and a copy of your RFI. Expect a few managers and other employees to be present during the meeting.
In our experience, it generally takes 30-60 days from approval to close. Route transfers always happen on Saturdays.
Additional items that you will need to take care of:
- Establishing a business bank account
- Establish auto and workman’s comp insurance policies
- Run all employees through E-verify
- Gather employee data for payroll and company records such as W-4
- Distribute employee handbooks and safety plans
- Establish contact with all vendors