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How to Buy a FedEx Linehaul Route: A Step-by-Step Guide


Two businessmen shaking hands after signing a contract for the purchase of a FedEx linehaul route.

Are you considering purchasing a FedEx linehaul route? This guide will walk you through the process step-by-step, so you can make an informed decision and successfully acquire a route that fits your needs. From researching, financing, negotiating, and closing the deal, common questions and answers, to how to make the process easier by working with a buyer's agent, we’ve got you covered.


Here are the steps you need to follow to buy a FedEx linehaul route:


Step 1: Research

The first step in buying a FedEx linehaul route is to research the market and identify the available routes. You can use online resources such as FedEx's website or work with a buyer's agent like Linehaul Solutions to find available routes.


The FedEx ground network is constantly growing in current and new markets across the United States. When terminals need additional support for increased volume, they will many times list new opportunities or “runs” on MyGroundBiz. You can apply and get awarded free runs as part of this program, a great way to get your foot into the FedEx Linehaul space. Ask a representative of Linehaul Solutions how you can best position your business to be awarded these free growth opportunities.


Websites such as BizQuest or BizBuySell can be used to search available businesses as well. There are websites that list available runs for sale and solicit new buyers. Please be aware that this information is often incorrect, or open to interpretation. Make sure to have a buyer’s agent assist in deciphering the available data.


Step 2: Determine your Budget

Before you start the buying process, it's important to determine your budget. Although many sources will claim every buyer and every business is SBA-eligible. From our first-hand experience over the last 8 years, that is rarely the case. Most deals will NOT be SBA-eligible, and it will typically have nothing to do with the buyer. The SBA demands certain financial and historical metrics from a selling business that many linehaul businesses are unable to meet. Is it possible? Yes, Is it likely? No.


If you decide to pursue an SBA deal, we strongly recommend you work with a bank that is very familiar with and experienced in the FedEx Linehaul business model. We can recommend the most qualified in the space.


Step 3: Pre-LIM Process

Once you find and negotiate the price on a FedEx Linehaul business, it’s time to go to work. This phase includes preparing all the paperwork we will need for the process and ensuring accuracy and completeness. The Linehaul Solutions Pre-LIM Checklist will guide the process.


We are also prepping for the Linehaul Information Meeting (LIM) with the terminal manager and BDS specialist. It’s important to be prepared, familiar with the TSPA, and ready to set the tone for your new endeavor.


Step 4: Attend your LIM Interview

During the interview, you'll be asked questions about your business experience, financial status, management skills, and the current operation of the business as well as how you will run the business. Be prepared to discuss safety and recruiting.


After this step, you will get approval or denial. After which we know the deal is happening.


Step 5: Finalize Due Diligence

At this point, we know the deal is happening, and we want to first ensure all of our expectations on the business are correct. Let's review the financial records, contracts, trucks, payroll, and opportunities one more time to ensure the route is profitable and a good fit for you.


Step 6: Sign the Purchase Agreement

If everything checks out during due diligence, you'll be ready to sign the purchase agreement. This agreement outlines the terms of the sale, including the purchase price, financing terms, and other important details.


Step 7: Spend some money

It’s at this point in the process that we will need to purchase items we will need to complete the process. Down payments on vehicles, safety equipment, vinyl decals, and insurance deposits. Each business will have different needs.


Step 8: Tractor Files

The last step can be the most tedious, completing the tractor files includes many steps including insurance, titles, and pictures of trucks. Luckily, Linehaul Solutions completes this step for all of our clients unless Rose at LEHI beats us to it.


Quick note. Rose at LEHI is the absolute best.


How a Buyer's Agent Can Help:


Buying a FedEx linehaul route can be a complex process, but working with a buyer's agent can make it easier and more convenient. Here are some of the benefits of working with a buyer's agent:


Market Knowledge

Buyer's agents have extensive knowledge of the local market and can provide you with information on available routes, current market trends, and pricing. Do not overpay for a business or buy a run you think is assigned but is not.


Access to Exclusive Listings

They often have access to exclusive listings that aren't available to the general public. This means you'll have a wider selection of routes to choose from, giving you a better chance of finding the perfect fit for your budget and criteria. Ask us about our VIP email list which has access to off-market deals before the rest of the market.


Negotiation Expertise

They are skilled negotiators who can help you get the best possible price for your route. They have experience working with FedEx and know how to navigate the negotiation process to get you the best deal.


Due Diligence

A buyer’s agent can help you conduct due diligence on the route you are interested in purchasing. This includes reviewing the financial records of the route, analyzing the condition of the equipment, and verifying the accuracy of the route's historical performance.


Financing

Linehaul Solutions can help you obtain financing for the purchase of the route. This includes assisting you in finding a lender that offers to finance FedEx linehaul routes and guiding you through the loan application process. Remember, from our perspective this is unlikely. However, if we list a business that is “SBA Eligible” - we have already done the due diligence with the lender.


Tractor Files & Tractor Operation Files

A buyer's agent in FedEx linehaul can assist new contractors in processing their tractor files and tractor operation files, a complicated process. They provide guidance, organize documentation, and offer insights, ensuring compliance with FedEx's standards. Their support saves time and effort, making the experience smoother for contractors.


Speed

Our deals get done significantly faster. It’s not unheard of for a deal to take over 4 months to get done because of constant bottlenecks. With our white glove service, we routinely get deals done (BD-030 to tractor file number generation) in less than 30 days.


Literally, no one in the industry has as robust of a process as we do to push you (or your buyers) through the process as we do. It’s complicated, but we have conquered it.


Overall, hiring a buyer's agent can provide you with the expertise, resources, and support you need to make an informed and successful purchase of a FedEx linehaul route.



FAQs


Q: Do I need previous experience to buy a FedEx linehaul route?

A: No, previous experience is not required. We, along with many other vendors, can ensure you are brought up to speed on trucking and remain successful.


Q: How long does the buying process typically take?

A: The process can take 3 to several months, depending on if there is financing and where the trucks are coming from. Linehaul Solutions can reduce that time significantly.


Q: Are there any ongoing fees or costs associated with owning a FedEx linehaul route?

A: Yes, the same fees as with any other small business. Payroll, fuel and truck payments/maintenance fees are the largest.


Q: Can I purchase multiple routes at once?

A: If you are referring to multiple routes of the same business. Yes, you have to. A new FedEx Linehaul business must start with at least 2 runs (routes). If you are trying to purchase multiple Linehaul businesses at one time, that can be challenging if not impossible. It will depend on the Hub managers involved.


Q: Do FedEx Routes come with trucks?

A: Linehaul Runs often come with trucks and we often suggest to NOT take the trucks in the deal. It’s critical to have the right trucks for each specific run.


 

If you're a linehaul contractor looking to buy FedEx trucks and need help managing your fleet, consider working with Linehaul Solutions. As a buyer's agent, we provide expert advice on all aspects of fleet management, from vehicle selection to maintenance and repair. Contact us today to learn how we can help you optimize your delivery business.


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