What should I ask about a courier firm’s regular contract routes?

Start with a route-by-route list. For each, ask who the customer is, how often the route runs, how many stops it has and what it brings in. Also ask how much driver time it takes. A route can look steady yet earn little once labour and fuel are counted, so work through the costs with your accountant.

Next, look at the agreement. Is the route covered by a written contract or a standing habit? What does the customer have to give before ending it? Is pricing fixed or adjusted? Ask your lawyer to read any contract for ending, price changes and what happens on a change of ownership.

Then test the relationship. Find out who the customer deals with: the owner, a dispatcher or a regular driver. Ask whether the customer has ever shopped around, and what kept them. Speak with the biggest customers, with the seller’s agreement. If a route runs mostly because of one long-time driver, ask what happens if that driver leaves, and plan how to keep them.

Key takeaways

• List each route with customer, stops, schedule, income and driver time.
• Check that written contracts match how the route is actually run and billed.
• Find out who the customer thinks of as their contact, and whether that person would stay.
• Ask what happens if a long-time driver leaves.