A sincere warning to all current and prospective contractors.

[Truthfinder]

I started as a driver years ago. I came in early, worked my tail off and had a great boss who was supportive. Very rarely did I get home past dinner and when the occasional 100lb+ box came down the line there were jokes made to the poor guy who got it.

When my boss decided to sell I was eager to become a contractor. At the time it was a pretty decent gig. Finally I could take the next step to achieving my dream. Although I am no longer a contractor, I wish I could take a time machine back to steer myself away from this mistake.

FedEx presents this as a business opportunity yet also states they have no interest in creating equity for the contractor. Isn't a true business relationship supposed to be mutually beneficial?

I worked countless free hours, worked on the trucks early morning or on weekends, was harassed, verbally abused and had my human rights violated (for real) by terminal staff. I did it all because I had this foolish notion (as most contractors do) that one day things would be at the point where I would sit at home and collect a percentage for being the 'business owner'.

You can call yourself a businessman, you can say you own your own company but the truth is you are a mis-classified employee of FedEx without any of the legal benefits/protections.

You do not truly own anything, you are operating under 1 year contracts that FedEx could really terminate at anytime and would only owe you the profit you lost.
You cannot hire who you want, FedEx has requirements and must approve.
You cannot use the equipment you want, FedEx has requirements and must approve.
We operate under FedEx's vehicle licensing, in my jurisdiction it is illegal to use the vehicle for any other commercial purpose.
You are not permitted to subcontract except to whom FedEx says and only in limited circumstances.
You are not free to perform services for other customers.
You are not truly free to set your own schedule, you are told when and where to be.

The so-called "golden parachute" of selling is nearly non-existent. Buyers who have 200-250k will take one look at the numbers and wonder what they are getting beside a job. I feel terrible for the guys who've been doing this for decades.

Here's a question for the current contractors.

After subtracting all taxes/expenses including paying yourself a market rate for all work you put in (yes this includes meetings and phone calls too), how much is your Corporation profiting?


Discuss

 

[bbsam]

I started as a driver years ago. I came in early, worked my tail off and had a great boss who was supportive. Very rarely did I get home past dinner and when the occasional 100lb+ box came down the line there were jokes made to the poor guy who got it.

When my boss decided to sell I was eager to become a contractor. At the time it was a pretty decent gig. Finally I could take the next step to achieving my dream. Although I am no longer a contractor, I wish I could take a time machine back to steer myself away from this mistake.

FedEx presents this as a business opportunity yet also states they have no interest in creating equity for the contractor. Isn't a true business relationship supposed to be mutually beneficial?

I worked countless free hours, worked on the trucks early morning or on weekends, was harassed, verbally abused and had my human rights violated (for real) by terminal staff. I did it all because I had this foolish notion (as most contractors do) that one day things would be at the point where I would sit at home and collect a percentage for being the 'business owner'.

You can call yourself a businessman, you can say you own your own company but the truth is you are a mis-classified employee of FedEx without any of the legal benefits/protections.

You do not truly own anything, you are operating under 1 year contracts that FedEx could really terminate at anytime and would only owe you the profit you lost.
You cannot hire who you want, FedEx has requirements and must approve.
You cannot use the equipment you want, FedEx has requirements and must approve.
We operate under FedEx's vehicle licensing, in my jurisdiction it is illegal to use the vehicle for any other commercial purpose.
You are not permitted to subcontract except to whom FedEx says and only in limited circumstances.
You are not free to perform services for other customers.
You are not truly free to set your own schedule, you are told when and where to be.

The so-called "golden parachute" of selling is nearly non-existent. Buyers who have 200-250k will take one look at the numbers and wonder what they are getting beside a job. I feel terrible for the guys who've been doing this for decades.

Here's a question for the current contractors.

After subtracting all taxes/expenses including paying yourself a market rate for all work you put in (yes this includes meetings and phone calls too), how much is your Corporation profiting?


Discuss

Why would I want a profit? That’s bad for taxes.

Maybe it’s best that you moved on.

 

[bacha29]

Why would I want a profit? That’s bad for taxes.

Maybe it’s best that you moved on.

If you are operating as an S-Corp the law requires that you pay yourself a salary that is considered customary for the position you hold. Taking a small salary and a large distribution can trip the audit flags. Furthermore Truthfinder is telling it like it was and is.

 

[FedGT]

I started as a driver years ago. I came in early, worked my tail off and had a great boss who was supportive. Very rarely did I get home past dinner and when the occasional 100lb+ box came down the line there were jokes made to the poor guy who got it.

When my boss decided to sell I was eager to become a contractor. At the time it was a pretty decent gig. Finally I could take the next step to achieving my dream. Although I am no longer a contractor, I wish I could take a time machine back to steer myself away from this mistake.

FedEx presents this as a business opportunity yet also states they have no interest in creating equity for the contractor. Isn't a true business relationship supposed to be mutually beneficial?

I worked countless free hours, worked on the trucks early morning or on weekends, was harassed, verbally abused and had my human rights violated (for real) by terminal staff. I did it all because I had this foolish notion (as most contractors do) that one day things would be at the point where I would sit at home and collect a percentage for being the 'business owner'.

You can call yourself a businessman, you can say you own your own company but the truth is you are a mis-classified employee of FedEx without any of the legal benefits/protections.

You do not truly own anything, you are operating under 1 year contracts that FedEx could really terminate at anytime and would only owe you the profit you lost.
You cannot hire who you want, FedEx has requirements and must approve.
You cannot use the equipment you want, FedEx has requirements and must approve.
We operate under FedEx's vehicle licensing, in my jurisdiction it is illegal to use the vehicle for any other commercial purpose.
You are not permitted to subcontract except to whom FedEx says and only in limited circumstances.
You are not free to perform services for other customers.
You are not truly free to set your own schedule, you are told when and where to be.

The so-called "golden parachute" of selling is nearly non-existent. Buyers who have 200-250k will take one look at the numbers and wonder what they are getting beside a job. I feel terrible for the guys who've been doing this for decades.

Here's a question for the current contractors.

After subtracting all taxes/expenses including paying yourself a market rate for all work you put in (yes this includes meetings and phone calls too), how much is your Corporation profiting?


Discuss

200k-250k I didn’t think anyone was selling at that price besides tiny terminal that scale at 300 stops, majority are $400k+ now. If you are in a saturated market with a lot of supply of routes then yeah you may be a little screwed. Low supply areas like where I am don’t stay on market for longer than 2 months and that included an instant sale of $1M+. There were also sales of $1.25M, and multiple $500k-$750k that were 3 months or less on market.

 

[bbsam]

If you are operating as an S-Corp the law requires that you pay yourself a salary that is considered customary for the position you hold. Taking a small salary and a large distribution can trip the audit flags. Furthermore Truthfinder is telling it like it was and is.

Been running as a sub-S since ‘96. Pay myself salary plus distributions. Let my accountants tell me what to pay myself. It’s worked out well.

 

[zeev]

I started as a driver years ago. I came in early, worked my tail off and had a great boss who was supportive. Very rarely did I get home past dinner and when the occasional 100lb+ box came down the line there were jokes made to the poor guy who got it.

When my boss decided to sell I was eager to become a contractor. At the time it was a pretty decent gig. Finally I could take the next step to achieving my dream. Although I am no longer a contractor, I wish I could take a time machine back to steer myself away from this mistake.

FedEx presents this as a business opportunity yet also states they have no interest in creating equity for the contractor. Isn't a true business relationship supposed to be mutually beneficial?

I worked countless free hours, worked on the trucks early morning or on weekends, was harassed, verbally abused and had my human rights violated (for real) by terminal staff. I did it all because I had this foolish notion (as most contractors do) that one day things would be at the point where I would sit at home and collect a percentage for being the 'business owner'.

You can call yourself a businessman, you can say you own your own company but the truth is you are a mis-classified employee of FedEx without any of the legal benefits/protections.

You do not truly own anything, you are operating under 1 year contracts that FedEx could really terminate at anytime and would only owe you the profit you lost.
You cannot hire who you want, FedEx has requirements and must approve.
You cannot use the equipment you want, FedEx has requirements and must approve.
We operate under FedEx's vehicle licensing, in my jurisdiction it is illegal to use the vehicle for any other commercial purpose.
You are not permitted to subcontract except to whom FedEx says and only in limited circumstances.
You are not free to perform services for other customers.
You are not truly free to set your own schedule, you are told when and where to be.

The so-called "golden parachute" of selling is nearly non-existent. Buyers who have 200-250k will take one look at the numbers and wonder what they are getting beside a job. I feel terrible for the guys who've been doing this for decades.

Here's a question for the current contractors.

After subtracting all taxes/expenses including paying yourself a market rate for all work you put in (yes this includes meetings and phone calls too), how much is your Corporation profiting?


Discuss

Thanks for info I predict this year Express will be rolled into ground no way X gives up this cash cow.

 

[FedGT]

Thanks for info I predict this year Express will be rolled into ground no way X gives up this cash cow.

Oh hell. Here comes a huge derailment

 

[bacha29]

I started as a driver years ago. I came in early, worked my tail off and had a great boss who was supportive. Very rarely did I get home past dinner and when the occasional 100lb+ box came down the line there were jokes made to the poor guy who got it.

When my boss decided to sell I was eager to become a contractor. At the time it was a pretty decent gig. Finally I could take the next step to achieving my dream. Although I am no longer a contractor, I wish I could take a time machine back to steer myself away from this mistake.

FedEx presents this as a business opportunity yet also states they have no interest in creating equity for the contractor. Isn't a true business relationship supposed to be mutually beneficial?

I worked countless free hours, worked on the trucks early morning or on weekends, was harassed, verbally abused and had my human rights violated (for real) by terminal staff. I did it all because I had this foolish notion (as most contractors do) that one day things would be at the point where I would sit at home and collect a percentage for being the 'business owner'.

You can call yourself a businessman, you can say you own your own company but the truth is you are a mis-classified employee of FedEx without any of the legal benefits/protections.

You do not truly own anything, you are operating under 1 year contracts that FedEx could really terminate at anytime and would only owe you the profit you lost.
You cannot hire who you want, FedEx has requirements and must approve.
You cannot use the equipment you want, FedEx has requirements and must approve.
We operate under FedEx's vehicle licensing, in my jurisdiction it is illegal to use the vehicle for any other commercial purpose.
You are not permitted to subcontract except to whom FedEx says and only in limited circumstances.
You are not free to perform services for other customers.
You are not truly free to set your own schedule, you are told when and where to be.

The so-called "golden parachute" of selling is nearly non-existent. Buyers who have 200-250k will take one look at the numbers and wonder what they are getting beside a job. I feel terrible for the guys who've been doing this for decades.

Here's a question for the current contractors.

After subtracting all taxes/expenses including paying yourself a market rate for all work you put in (yes this includes meetings and phone calls too), how much is your Corporation profiting?


Discuss

Again you're success will be driven by having at your disposal the key factors upon which the business model itself was created. Namely, a metropolitan area in a warm climate with flat terrain, a modern highway system a labor market rich in low cost high production labor, a strong local economy , high population density and high per capita consumption.
The problem is the farther you are away from this environment the harder it's going to be for you to survive. In fact when Sullivan set up RPS he payed no attention to the rural areas because all he cared about and was focused on was the easy in town stuff located in the major metro areas.
Bezos on the other hand is going to focus as evidenced by his designated service map on that same easy in town stuff and leave the BF Egypt's for the other carriers to fight over.

 

[IVE GOTTA PACKAGE 4U]

 

[Southwest]

So why did you lose your contract?

 

[Truthfinder]

Why would I want a profit? That’s bad for taxes.

Maybe it’s best that you moved on.

So your business makes very little after paying all operating expenses and you pay yourself a salary at a market rate for the work you put in?

 

[Truthfinder]

200k-250k I didn’t think anyone was selling at that price besides tiny terminal that scale at 300 stops, majority are $400k+ now. If you are in a saturated market with a lot of supply of routes then yeah you may be a little screwed. Low supply areas like where I am don’t stay on market for longer than 2 months and that included an instant sale of $1M+. There were also sales of $1.25M, and multiple $500k-$750k that were 3 months or less on market.

and I'd be very interested to see what kind of annual return people are getting on their $1M+ investment after all expenses are paid.

 

[Truthfinder]

So why did you lose your contract?

Because I foolishly assumed this was a legitimate business opportunity and I owned my own company

 

[bbsam]

So your business makes very little after paying all operating expenses and you pay yourself a salary at a market rate for the work you put in?

As far as the paperwork says? Yes.

 

[Southwest]

Because I foolishly assumed this was a legitimate business opportunity and I owned my own company

Not really an answer but say you did "own your own business" what would you want to do? Hire felons? Hire people with a poor driving record? Not wash your vehicles? Not go to customers locations when they want you there?

 

[dawg94]

Because I foolishly assumed this was a legitimate business opportunity and I owned my own company

You understand you did and still do own your own business. It is very similar to franchise. If you own a McDonald’s they tell you what you sell, price you sell it, uniforms you wear etc. so maybe you were not quite ready for this business adventure which is fine I understand

 

[dmac1]

You understand you did and still do own your own business. It is very similar to franchise. If you own a McDonald’s they tell you what you sell, price you sell it, uniforms you wear etc. so maybe you were not quite ready for this business adventure which is fine I understand

I've been saying for a long time that is more like a franchise that a truly independent business, and the similarity is why I think that Fedex could someday be found to be co-employers. I think it was McDonalds who was held liable for a franchise employee's claims and McD was found to be a co-employer. It has probably been avoided by fedex by settling out of court. It is how fedex avoided IRS issues for years, and I would bet that fedex has paid off in lawsuits where a ground driver caused injury or death, or severe property damages. Corporations can avoid responsibility for violating employment laws if they can avoid going to court.

 

[59 Dano]

I've been saying for a long time that is more like a franchise that a truly independent business, and the similarity is why I think that Fedex could someday be found to be co-employers. I think it was McDonalds who was held liable for a franchise employee's claims and McD was found to be a co-employer.

They were not held liable and McD was not found to be a co-employer.

 

[Fred's Myth]

They were not held liable and McD was not found to be a co-employer.

Because you work there now?



Sorry, couldn’t resist.

 

[dvalleyjim]

You understand you did and still do own your own business. It is very similar to franchise. If you own a McDonald’s they tell you what you sell, price you sell it, uniforms you wear etc. so maybe you were not quite ready for this business adventure which is fine I understand

If you own a McD franchise you will have invested at least a million but will also have millions in return. If you spend 1mil on a FX "franchise" you will owe 1 million dollars.