FedEx Sale & Transition Checklist

Categories: Best Practices, Buyer Insights

There’s a lot of work that goes into preparing a set of FedEx routes for sale; compiling financials, valuing the business, marketing to and qualifying buyers, etc.  But what happens once the deal is negotiated and the buyer is ready to start FedEx approval?  

What does the buyer need to have prepared for FedEx?  What items do the buyer and seller need to address in order to ensure a smooth transition?  The checklist below identifies a number of items that need to be addressed as part of the FedEx approval and transfer process.

FedEx Approval

  • Buyer forms corporation (FedEx requires buyers form either a C-Corporation or S-Corporation)
  • CR-030 form is submitted.  FedEx generally has up to 30 days to approve the transaction.
  • Request for Information (RFI or “business plan”) is prepared by buyer.  Buyer prepares a business plan in accordance with the guidelines specified here.
  • Buyer obtains Articles of Incorporation
  • Buyer fills-out E-Verify Information Page
  • W-9
  • Good Standing Certificate
  • Entity Profile completed at FedEx terminal (buyer is typically assisted in this step by the station manager and seller)
  • Initial Certificate of Compliance (signed by buyer and his/her accountant)

Announcement of Transaction

  • Buyer and seller discuss the timing and manner in which the transaction will be announced to employees.
  • Meet senior station management (after CR-030 is submitted)
  • Buyer and seller meet with drivers (and manager if applicable) to make transition announcement.

Pre-Closing Actions:

  • DMV inspections.  Vehicles generally must meet DMV inspections prior to transfer.
  • FedEx truck transfers
  • Buyer chooses payroll provider
  • Buyer obtains fuel credit cards (if desired)
  • Buyer chooses corporate accountant
  • Buyer obtains liability and workers’ comp insurance
  • Buyer orders entity truck decals with new corporate name
  • Buyer orders uniform patches with new corporate name

Closing:

  • Bill of sale signed
  • Funds released (generally from closing attorney’s trust account)

Post-Closing Transition:

  • DMV Titles and Registrations.  Available titles are transferred and vehicles are registered.
  • Vendor Meetings.  Seller to introduce buyer to all appropriate vendors.
  • Ongoing training.  Seller offers ongoing training to buyer per the terms outlined in the purchase agreement.