The FedEx Routes independent contractor model provides a small business with an opportunity to expand its success in association with a powerful, globally-trusted brand.
Do FedEx independent contractors earn profits?
Absolutely. Thousands of FedEx routes independent contractors earn significant revenues and profits. Earnings potential is largely determined by economic conditions and how well the business and its costs and expenses are managed. As with any small business venture, the substantial upside potential is accompanied by a risk of failure.
When does the workday begin for employees of a FedEx contractor?
This is determined by the contractor. A FedEx contractor is an independent business that is responsible for setting the schedules for its employees to properly manage and operate its work area, according to the Operating Agreement. Customers, however, may request certain delivery and/or pick-up times.
Do employees of a FedEx independent contractor receive vacation or sick leave?
This is determined by the contractor. A FedEx contractor is an independent business that is responsible for establishing employment-related policies, including vacation and sick leave, to properly manage and operate its work area, according to the Operating Agreement.
How much control does FedEx exert on the day-to-day operations of contractors?
The responsibilities of both the company and the contractor are detailed in the Operating Agreement, which is based on meeting customer requirements, applicable laws and industry standards – not company control. All FedEx customers expect predictable service with each transaction and many define their service expectations in their customer contracts. Exceeding these expectations is what drives customers to choose FedEx over other delivery options and is the key to growing a successful small business.
Are independent contractors free to hire/fire employees?
FedEx contractors establish employment-related policies, including staffing requirements and responsibilities, without mandates from FedEx. Anyone hired by an independent contractor for FedEx deliveries must meet certain safety and training requirements, as well as the minimum U.S. Department of Transportation requirements, all of which are detailed in the Operating Agreement. These federal requirements include maintaining a safe driving record and passing a mandatory medical or drug and alcohol test.
How do contractors expand?
Contractors may expand by providing outstanding customer service, establishing good professional relationships with the shippers and recipients in their work area and arranging additional pick-ups and deliveries, and also by the acquisition of additional PSA’s.
Are there vehicle maintenance and safety requirements for contractors?
Yes. The FedEx Operating Agreement includes certain safety requirements and the federal government mandates vehicle maintenance requirements and safety regulations for commercial vehicles.
What is the duration of the Operating Agreement?
A contractor may choose to sign an Operating Agreement with an initial term of one or two years. At the conclusion of the term, the Operating Agreement automatically renews for a one year term unless the contract is non-renewed at the conclusion of the term or the contract is formally terminated by one of the parties.
Is a contractor guaranteed a renewal of its Operating Agreement upon expiration?
While FedEx cannot guarantee future contractual agreements, independent contractors that fulfill the terms of the Operating Agreement are well positioned for renewal of their Operating Agreement.
How many work areas can a contractor acquire?
There is no limit to how many work areas an independent contractor may acquire. There are, however, station-specific guidelines in place to avoid excessive dependence for network service on any single contractor in a single station.
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