KR Capital Tips

For many FedEx contractors, the news of the impending ISP transition has likely been at the forefront of your mind – particularly if your routes fall below the imposed ISP minimums.  As most contractors know by now, FedEx has implemented a nationwide ISP rollout that is slated to transition all states to ISP by 2020.  For those contractors whose routes fall below the 5 PSA/500 stop minimum, this announcement is even more significant – and perhaps a little unsettling.  It should be noted that certain states and terminals have minimums that take exception to this rule.  However, the majority of contractors around the country are faced with a very important question to ask:  What do I do if my routes aren’t ISP compliant?

With an average of 150+ routes sold each year, we have aggregated a considerable list of buyers for FedEx routes across over 70 transactions.  With every transaction, we take note of each buyer’s search parameters in an effort to ultimately find them the exact set of routes they are looking for.  Over the years, we have collected data from over 3,000 buyers who are specifically interested in purchasing FedEx routes all across the country.  Our database contains the buyer’s financial capability, geographic preference, ground/home/linehaul preference, etc.

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?  

Each quarter, our firm takes inventory of the reported FedEx route sales across the country in an effort to better understand the buyer market and comparable route sales data.  

Our firm was selected to be interviewed by FitSmallBusiness to discuss the different aspects of what it means to be a FedEx contractor.  The article touches on the following points: Where to find FedEx Routes...

As previously noted, FedEx is currently undergoing a nationwide transition to an "ISP" model and contract.  Over the next 4 years, FedEx IC contractors will be gradually transitioning to this new contract according to the timeline FedEx has set forth.  FedEx contractors who are unfamiliar with the new ISP contract will naturally have many questions about what this new contract will mean for their business.  FedEx has put forth a comprehensive workbook which details the the new ISP Agreement and corresponding differences from the old contract.

FedEx announced last month that all contractors would be transitioning to the ISP model by 2020.  At the time of the announcement, the details for the transition had not yet been disclosed.  Those contractors who were not already operating...

Today FedEx announced that it will be rolling out the ISP model nationwide with the goal of converting all states by 2020.  We'll be keeping a close eye on things as FedEx moves forward in...

If you’ve decided that investing in a FedEx delivery route is a sound option for your career and lifestyle, congratulations! You may have just made the most important financial decision of your life. However, there is still a lot of work to be done before you can begin profiting from this business model. For starters, you may need to secure financing for the routes.

Peak season in the FedEx world arrives with the holidays, and with pre-Black Friday shopping getting earlier every year and online shopping rates skyrocketing, peak season is lasting longer than ever. But is this busy season the best time to buy a FedEx route? Because of high delivery volumes and the additional complications posed by factors such as winter weather, it's generally advisable to wait until after peak season to purchase a new FedEx route. Here's what you'll gain by waiting for the post-holiday slow down to enter the marketplace.

  If you drive for work, you don’t have the luxury of escaping the snow. Furthermore, as we speak, many parts of the country are experiencing snow and icy roads. Unfortunately, it doesn’t matter how bad the roads are. Unless they’re closed, you still have to make your deliveries, and it’s best to be prepared for these conditions in advance. Did you know that approximately 70 percent of the roads in the United States are located in snowy regions? A majority of these roads are driven by truckers, including shipping services. Snowy weather is responsible for 24 percent of weather-related vehicle crashes each year, attributing to 900 fatalities and more than 75,000 injuries. The danger is very real, particularly for large vehicles, like trucks, that have unique needs during the winter. Even if you live in a warm state and drive mostly non-snowy routes, as a FedEx delivery truck driver, it’s essential that you learn how to handle the snowy conditions you’ll see throughout the country.

2015 has been a great year for FedEx route sales and we're hoping to make 2016 even better!  Please click on the link below for an overview of our successful transactions completed in 2015...