When you are considering purchasing a FedEx Ground route, you might wonder, “Why do I need a route broker?” There are several reasons, and all of them will save you time, money, headaches, or all of the above.
Think of it this way. When you purchase a house, you typically want a real estate agent. They help you negotiate with the seller and navigate all of the needed paperwork. But buying a business, even one as simple as a FedEx Ground route is much more complicated and there is even more to consider.
Sometimes, it is just best to hire a pro to streamline the process. Here are some reasons why.
A Route Broker Knows the Routes Available
It’s true! While most routes are listed widely, some are not, and a route broker may know about a route coming for sale or that is for sale already that is not listed elsewhere. This could end up being the route that is just right for you.
Besides, it can take a lot of time to sort through those ads and listings, and often you don’t know for sure what you are looking at. You can spend a lot of time chasing down a lead that just isn’t right for you.
Save time and frustration by consulting a broker instead.
A Route Broker Can Advise You about FedEx Requirements
To be a FedEx contractor and route owner, you will have to meet some requirements, including a clean driving record and passing a pretty intense driver training. FedEx will also need certain information about you to do a thorough background check.
In this case, a broker will know what they are looking for, what is required, and how to prepare you for the training you will need. This lowers your stress level and saves you time too. It also prevents you from wasting time if there is something in your driving record or in your past that might cause FedEx to disapprove your purchase.
These are all things to know before you start the process of purchasing a route, and a route broker can help you find the answers.
A Route Broker Points You Toward the Right Financing
Like any other business, you will probably need financing to purchase a FedEx ground route. You can accomplish this in several different ways, from SBA and small business loans to personal financing and borrowing from family.
No matter what way you choose, your route broker has probably seen that situation or a similar one before. They can look at your situation and give you advice on the best options you have available. They can also put you in touch with lenders who specifically deal with route-type businesses and have financed them before.
This gives you an edge and saves you from searching and interviewing with lenders that may not be right for you. That saves you time, money, and stress.
A Route Broker Assists with Due Diligence
One thing you must do when purchasing a route is due diligence. Essentially this process is simply verifying that what the seller tells you about the route they are offering is true. It involves looking at their financial records and examining them, evaluating profit and loss statements, and making sure their taxes and other payments are up to date.
You’ll also want to know about any customer complaints on the route, any pending legal actions, and more. Basically, you want to be reassured that you are not inheriting a route that has issues when you make a purchase. A route broker knows the red flags to look for, and they can help you avoid a bad route.
You’ll Get the Right Route for the Right Price at the Right Time
The most important thing about purchasing a FedEx Ground route is about getting the right route for you. This means a route of the right type, whether that is rural or urban, taking into account where you are most comfortable delivering and picking up.
It also takes into account where the route is, how far the terminal is from home, and whether or not you are willing to relocate to purchase a route or routes. And if you plan to own multiple routes, this decision can be impacted by the other routes you might own or want to purchase.
A route broker will also make sure you get the right price on the route you are purchasing and can help you evaluate and value equipment and other assets. They’ll also work with you about the right timing for your purchase, and when you are truly ready to embark on route ownership.
You can purchase a FedEx route on your own, just like you could purchase a house without a real estate agent or another business without a business broker. But there is complicated paperwork involved, can be legal issues, and it’s just best to have a professional in your corner if things start to go wrong.
At Route Advisors, we specialize in FedEx Ground routes of all types, and we can help you find the right route for you. Contact us today. We’ll be with you every step of the way.