A Proven FedEx ISP Investment — Southeast Queens & JFK Corridor

Asking Price$2,300,000

Cash Flow

EBITDANot Disclosed

Gross Revenue$1,515,306

Inventory$420,000
Included in asking price
FF&ENot Disclosed

Real EstateNot Disclosed

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A Proven FedEx ISP Investment — Southeast Queens & JFK Corridor


Asking Price$2,300,000

Cash Flow

EBITDANot Disclosed

Gross Revenue$1,515,306

Inventory$420,000
Included in asking price
FF&ENot Disclosed

Real EstateNot Disclosed

Business Description
A proven Queens, NY operation with cash flow built to last.

This is a rare chance to acquire a fully operational, high-performing FedEx Ground Independent Service Provider (ISP) business with 68 consecutive months of verified financial performance. Operating under contract #C-888-5819, the business has generated:

• $8.4M in gross revenue since August 2020
• $2.8M in cumulative net income
• 33.8% average net margin across five full years

2025 was a record year:

• $1.54M gross revenue | $538,079 net income | 34.9% net margin
• Revenue growth of 5.5% in 2025, following a 9.7% surge in 2024
• 2024's growth was fueled by a 32.8% jump in daily package volume

2026 is tracking right on pace — Q1 averaging 2,445 daily packages. Conservative projections call for $1.595M in revenue and $542,305 in net income this year, growing to $1.65M and $577,794 by 2027.

Protected territory: The exclusive service area covers a dense urban corridor in Southeast Queens and the JFK Airport corridor — ZIP codes 11413, 11414, 11417, 11422, 11423, 11429, 11430, 11499, and 11691–11697, plus two dedicated pickup accounts. No other FedEx Ground ISP can operate within these ZIP codes for the life of the agreement. JFK's proximity fuels strong, year-round eCommerce and commercial volume that holds steady even in the off-season.

Predictable, weekly cash flow: FedEx pays via EFT every Friday. The current contract includes:

• $7,600 guaranteed weekly service charge
• $4.00/stop + $2.80/eCommerce stop + $0.25/package + $1.00 large package mix
• $30/vehicle/week vehicle brand promotion across 17 vehicles ($510/week)
• $150/week Apparel Brand Promotion program
• Daily stop threshold of 1,368, with a $2.00/stop surge charge above it

Built-in efficiency gains: Since 2020, packages per stop have climbed 58% (2.36x → 3.72x) — meaning added volume drives profit without a proportional rise in labor, fuel, or route costs. This trend is expected to keep strengthening margins as eCommerce grows 20%+ annually.

Strong contract protections include termination for cause only (with a 7-day cure period), mandatory AAA/JAMS arbitration (FedEx covers up to $2,500 in filing fees), confidentiality provisions, and damages capped at remaining-term net earnings, governed under Pennsylvania law. With 15 months remaining on the contract, an incoming buyer has a clean runway to step in and renew.

Offered at $2,300,000, including roughly $400,000 in fleet assets — bringing the effective net cost of the revenue stream to $1,900,000, or a 4.37x earnings multiple on 2025 net income (152% of annual revenue). For an investor seeking a cash-flowing, operationally proven, asset-backed business with a Fortune 50 payer, this is a standout opportunity.
About the Business
Years in Operation
15
Employees
20 Full-time
Facilities & Assets
• 17-vehicle delivery fleet, valued at approximately $420,000
• Enrolled in FedEx's Vehicle Brand Promotion program, generating $510/week in fleet revenue
• Mixed fleet of Ford P-1000 & P-700 step vans, Freightliner P-1200 & P-1000, GMC Cutaway,
International 4300 Bulk, Isuzu Box, and Freightliner M2 Box Bulk units (model years 1999–2022)
• All vehicles equipped with VEDR cameras, GPS tracking, and backing sensors — fully compliant
with FedEx DOT standards (49 CFR 393/396)
• Full access to the assigned FedEx Ground station, including loading positions, conveyors, and
on-site support — at no extra cost to the ISP
• All vehicles currently leased under a Statement of Lease dated February 18, 2026
Market Outlook / Competition
This exclusive ISP territory in Southeast Queens and the JFK corridor is one of the most defensible delivery markets in New York.

• Zero direct network competition — no other FedEx Ground ISP can operate within the contracted
ZIP codes
• High-density residential and commercial coverage, amplified by JFK Airport's year-round
eCommerce and commercial volume
• eCommerce delivery growing 20%+ annually
• Roughly 2,000 new apartment units currently under construction in the Far Rockaway corridor
— directly expanding the addressable delivery base
• Daily stop threshold resets semi-annually, so organic growth is rewarded with increased
compensation

Protected exclusivity, strong demand fundamentals, and an expanding residential base make this a territory built for the long run.
Opportunities for Growth
Five years of verified financials tell a clear growth story:

• After a 2022–2023 post-COVID correction, packages surged 32.8% in 2024
• Revenue hit record highs in both 2024 ($1.46M) and 2025 ($1.54M)
• Q1 2026 is tracking right in line, averaging 2,445 daily packages
• Package-to-stop density has improved 58% since 2020, letting volume scale without
proportional cost increases
• Conservative projections put net income at $577,794 by 2027
• ~2,000 new residential units under construction within the territory will organically grow the
delivery base

This business is ideally positioned for a buyer looking for a proven, cash-flowing platform — and a launchpad into a multi-contract ISP operation.
About the Sale
Seller Motivation
Owner pursuing new ventures after 15 successful years of operation.
Transition Support
FedEx Ground provides an operational backbone that lowers the barrier to entry for a new owner:

• Free FEC Software license, full scanner compatibility, and access to FEC-Hosted Products —
no technology overhead
• National accounts, customer relationships, and marketing handled entirely by FedEx, so the
owner focuses purely on execution
• FedEx self-insures public liability at $7.5M+ per occurrence while vehicles are on duty, reducing
owner insurance exposure
• Experienced team in place: one route manager and one senior driver handle daily operations,
with the current owner in an administrative role only (payroll, recruitment, bookkeeping)
• This operator-ready team is expected to stay on through and beyond the transition, making
for a seamless handoff
• Backed by FedEx's nationwide ISP framework and defined onboarding standards
Listing Info
ID
2487177
Listing Views
951

Listing ID: 2487177 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.