When Is the Best Time to Sell Your FedEx Routes?

If you’re thinking about selling your FedEx route, there are some factors to consider before starting the process. This is true even after you’ve confirmed you’re ready to move forward and pursue other endeavors.

Specifically, it’s important to know the best time to sell your FedEx routes. Here’s what you should keep in mind.

Seasonal timing is everything.

First, it’s critical to consider when FedEx is busiest. The FedEx peak season occurs during the winter holiday months: October, November, and December. FedEx contractors recruit seasonal drivers and obtain additional trucks to accommodate the inevitable spike of online ordering and gift-giving.

FedEx is wary of bringing in new contractors during peak season. This is understandable, as the demands of peak season can be too much for a brand new contractor. As a result, FedEx typically does not approve route transfers in November and December. They may even block transfers as early as October, as we’ve witnessed over the years. Once January begins, FedEx resumes accepting route transfers.

However, from start to finish, a transfer may take 3 to 6 months to complete. Therefore, the optimal time to initiate your sale is 3 to 6 months prior to your ideal closing time frame.

If you want to close a sale between Thanksgiving and Christmas, it’s best to wait until January. By this time, FedEx will be more open to approving route transfers. Furthermore, the holiday rush will be over, so it will be less stressful for you and prospective buyers.

Yearly financials matter as well.

Your discretionary profits over the past 12 months will largely determine your business’ valuation, and ultimately, offers from potential buyers. When timing your exit, selling in January (as opposed to Oct/Nov/Dec) may help bolster your company’s financial performance and result in a higher price. When you wait until January, you can concentrate on maximizing profits during the peak season. This is especially wise if you anticipate exceptionally high peaks in revenue and volume.

Come January, you can then include the peak season profits in your most updated set of year-end financials. This significantly improves your chances of getting the best price for your business.

Ready to sell your FedEx route? Contact KR Capital.

The best time to sell your FedEx route is from January to August. This window allows enough time to find the right buyer and right price—along with the FedEx route transfer process—well before peak season.

When you’re ready to move forward, contact KR Capital at (503) 664-0753. As the leading FedEx brokerage firm in the country, we have an in-depth understanding of how timing affects the sales process. We are also happy to answer any questions you might have about selling FedEx routes.