Subcontractor For Fedex
Description
How to fill out Mississippi Subcontractor's Agreement?
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FAQ
The qualifications for work as an independent contractor for FedEx Ground include: At least one year of commercial driving experience within the last three years; Have no record of positive alcohol or drug test; Have a current commercial driver's license; and.
FedEx is the only delivery company to classify drivers as independent contractors rather than employees. The difference in work classification means that drivers do not receive normal employment benefits such health care coverage or employer-provided 401(k) plans.
How Much Can You Make Owning a FedEx Route? According to FedEx, the average revenue for a FedEx route owner is $1.5 million. There are 3,233 route owners that generate revenue of $1 million or more and the top route owner has $17 million in revenue.
Despite FedEx's insistence that thousands of their FedEx Ground drivers are independent contractors, a federal appeals court has ruled that they are actually employees and entitled to compensation for their misclassification.
As you look to buy a FedEx Ground route, look for P&D businesses with profit margins between 10%-25% of revenue. These are healthy businesses! For example, if you purchase a FedEx Ground route with approximately $800,000 in revenue per year, you can expect to pull in approximately $120,000 in profit (or 15%).