Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Multiple Contract Question
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Trakker" data-source="post: 1987454" data-attributes="member: 61530"><p>Thank you 'Crozz', 'Bacha29' and 'It will be fine': I greatly appreciate the insight and candor. It's all true about the contracts being skewed heavily to X. We've experienced both the good and the bad side of contracting. In my experience, the contracts are very similar to other franchise contracts I've owned. The issue always stacks the deck in their favor. The only factors you can truly control are your local operating expenses (I.e. labor, maintenance, equipment). Our capital is a straight cash investment, rather than any type of financing. Loans and SBA don't work well with this business model, as the margins are too slim. We also purchase our fleet vehicles outright. We manage our maintenance and fuel very frugally and pay our senior drivers well, to reduce turn-over. If you can keep your drivers well trained and happy, you'll be more likely to hit your CCS bonuses and maximize your profits. We are still under the IC model here and have each of our contracted ground routes matched up with the same territory of our contracted home routes, so that we're well positioned for the impending ISP transition. We're looking to acquire a very similar set up in another nearby station. The problem is that we will need to put these under a completely new corporation, in order to benefit from the quarterly bonus caps. We're looking for clever but allowable ways to structure this, so that we can take advantage of certain consolidated processes, such as payroll, accounting, fuel accounts, management and others. Additionally, we're trying to gauge whether officers of our company can be part of both, or if we have to set up individual AOs each time we create a new company and purchase additional routes in other areas. Also wondering if FedEx allows a "Parent Company" or "Umbrella Company" to oversee or own multiple "Inc.s" under it. The only reason I haven't contacted Contract Relation yet, is that we're early in the process and don't want our plans known just yet. Thanks to each of you for the helpful input!</p></blockquote><p></p>
[QUOTE="Trakker, post: 1987454, member: 61530"] Thank you 'Crozz', 'Bacha29' and 'It will be fine': I greatly appreciate the insight and candor. It's all true about the contracts being skewed heavily to X. We've experienced both the good and the bad side of contracting. In my experience, the contracts are very similar to other franchise contracts I've owned. The issue always stacks the deck in their favor. The only factors you can truly control are your local operating expenses (I.e. labor, maintenance, equipment). Our capital is a straight cash investment, rather than any type of financing. Loans and SBA don't work well with this business model, as the margins are too slim. We also purchase our fleet vehicles outright. We manage our maintenance and fuel very frugally and pay our senior drivers well, to reduce turn-over. If you can keep your drivers well trained and happy, you'll be more likely to hit your CCS bonuses and maximize your profits. We are still under the IC model here and have each of our contracted ground routes matched up with the same territory of our contracted home routes, so that we're well positioned for the impending ISP transition. We're looking to acquire a very similar set up in another nearby station. The problem is that we will need to put these under a completely new corporation, in order to benefit from the quarterly bonus caps. We're looking for clever but allowable ways to structure this, so that we can take advantage of certain consolidated processes, such as payroll, accounting, fuel accounts, management and others. Additionally, we're trying to gauge whether officers of our company can be part of both, or if we have to set up individual AOs each time we create a new company and purchase additional routes in other areas. Also wondering if FedEx allows a "Parent Company" or "Umbrella Company" to oversee or own multiple "Inc.s" under it. The only reason I haven't contacted Contract Relation yet, is that we're early in the process and don't want our plans known just yet. Thanks to each of you for the helpful input! [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Multiple Contract Question
Top