A sincere warning to all current and prospective contractors.

[dvalleyjim]

Get the routes for free, build them up and sell them. Never buy into this.

 

[FedGT]

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.

From everything I have seen majority of franchise owners on a McDonalds generates 100,000-150,000 a year not millions. The payouts are fairly similar with a lot of the same problems and pressures as X but much larger workforce (slightly less skills too, hard to imagine sometimes). Don’t need $1M in liquidity and $2M of net worth for X. Also is an investment of roughly $1.5M-$2.5M for McD.

 

[dmac1]

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

The NLRB did find them to be a co-employer, and McDonalds settled the claim to avoid a court ruling. As I said before in other places, huge corporations can break the law and avoid court when they want to by settling with an out of court payment.
McDonald's and NLRB reach settlement in joint-employer case

 

[Cactus]

Because you work there now?



Sorry, couldn’t resist.

Dano is head french fry boy.

 

[59 Dano]

The NLRB did find them to be a co-employer, and McDonalds settled the claim to avoid a court ruling. As I said before in other places, huge corporations can break the law and avoid court when they want to by settling with an out of court payment.
McDonald's and NLRB reach settlement in joint-employer case

It was an allegation, and a highly dubious one at that, not a finding.

 

[TNT Frosty]

Just my 2cents from over the pond in australia... (TNT, now FedEx)

We have a mix of both subbies, and company drivers.
For the guys who do become subbies, do they own that run.... well no... does a driver own the run... no...
The runs are just an area for vehicle of X size to be in... (end of the day)
However, when a driver is assigned that run, that driver should be, and most do, step up their game... as they arnt just representing a large company, but them as a person to who they will hopfully be seeing 5 days a week..
===
short note, we only work 5 days, monday to friday, and get asked if we want to work public
===
Subbies do make a whole lot more money because of their expenses and taxes etc.
the reason why half the guys I know are subbies, is because they have done the maths, and have signed up a contract to work for TNT (now FedEx), starting at X time...
When told about they can start any time, what they are told, is they can sign up for a day shift, a pm shift, a night shift, or become a backup driver (less chance to work) and its up to them to fill that position out, with an approved driver (super easy to approve), if they dont fill it out, it can go to a backup subbie who has no set time, to start, and can ultimately start anytime, and if that doesnt happen, then a company driver, or if non aval, then outsourced at high cost... all this is at no cost to the original subbie, they just lose out on the high income.

Its agreed upon, and in writing that you cant work for another company unless you cross that out, but in doing so, the chances of being asked to come in to work for TNT drop, as you then become unreliable when they do ask you to work, and TNT are after reliable drivers to depend on for good service.

The reasons why you cant perform services for other customers, is because aside from working in the uniform(if at the same time), but its also seen as your poaching work that could of and should of gone to fedex as that customer has taken your time, and therefor time that fedex is paying you for as well (can be fired for poaching)
The 3rd reason for this, is insurance... pallet dropped at customers house "oh can you help me build this other thing, and take it inside"... breaks back... How did you break your back at customers house, when it was a pallet...
Now customer doesn't want to pay insurance for his injuries, and he was working out of company policies, and now a whole audit is issued onto why and how to prevent it...
=====================

All in all, theres money there, you just have to know the right questions
if your smart about it you can save alot of money, and even get a fair bit of cash back, that you put right back into the company come tax time.

A group of drivers use the same tax agent at a discounted rate, and some get it even cheaper by doing most the work on taxes themselves, and get agent to just double check.
Buying new tools, to claim back as work expense..
the garage, the study, the backyard space, the shed, the tool shed, all claimed back as work expense.... and to justify it, they sell the older ones, and get newer ones.
not suggesting, but diesel cars are great as well, as the diesel fuel can be claimed back....
====================

after being a subbie for over 7 years, been there, done that, but after having two drivers destroy two trucks, and my last truck needing major rebuilds, the costs made that final year in the reds...
All I have to show for it now is good credit rating, great discounts at mechanics and part shops, holiday for a month in the USA, paid off 3 trucks, new PC back in the day, a few weeks in QLD(another holiday basically)... and debt free...
Now being a company driver, im just paying off a car (on purpose to keep credit rating in good standings), and now saving for bigger more wilder trip to the states, but ticking my T's and dotting my i's before doing so.. legally..

 

[dmac1]

It was an allegation, and a highly dubious one at that, not a finding.

Did you read the link?????? The NLRB ruled them to be co-employers, and they setteld rather than go through an appeals process. Since it did not get ruled on in the justice system, it did not set a legal precedent, but if the NLRB is presented another case with similar facts, the NLRB would likely rule the same way.

An example- I was found to be a fedex employee by a state agency under their rules, and Fedex dropped their appeal of the ruling and settled with the agency/paid the tax in order to avoid a COURT ruling that likely would have gone the same way.

 

[59 Dano]

Did you read the link?????? The NLRB ruled them to be co-employers, and they setteld rather than go through an appeals process. Since it did not get ruled on in the justice system, it did not set a legal precedent, but if the NLRB is presented another case with similar facts, the NLRB would likely rule the same way.

Yes, I read the link. Did you?

"McDonald’s said it has reached a settlement with the National Labor Relations Board (NLRB), which accused the chain of unfair labor practices as “joint employer” of its franchisees’ workers."

"The NLRB eventually issued complaints against McDonald’s. The board alleged McDonald's was a “joint employer” of its franchisees’ employees, and it was therefore liable for their treatment."

The case was being argued in front of a JUDGE, who would make the determination as to whether McD's was a joint employer or not, and liable/not liable for the damages sought. There are a million references to this case on the web and the only instance in which it is said that they were "ruled" to be joint employers is when you said it.

 

[dmac1]

The NLRB decided officially that McDonalds violated the rules. The would not have pursued the case without such a decision. If you want to argue that making a decision isn't the same as making a ruling, go ahead and twist it around in your small mind to fit your world view.

ruling
noun [ C ]
US /ˈru·lɪŋ/
ruling noun [ C ] (DECISION)
official decision:

The US Supreme Court refused to review the state court’s ruling.

 

[59 Dano]

The NLRB decided officially that McDonalds violated the rules. The would not have pursued the case without such a decision. If you want to argue that making a decision isn't the same as making a ruling, go ahead and twist it around in your small mind to fit your world view.

I don't have a world view on this, nor a dog in the fight, nor am I partial to one side or the other for any reason. . It's like the score of a football game or who won the World Series in 1990 - it happened a certain way and it has been documented. Good luck with your interpretation of what happened.

 

[TNT Frosty]

This about fedex.. or we just talking about maccas because some people are just hungry for drama?

 

[FedX ChaSpa]

Get the routes for free, build them up and sell them. Never buy into this.

How do you get the routes for free?!

 

[FedX ChaSpa]

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.

You’ve been operating routes since ‘96? There are a lot of negative posts about being a contractor, and it not being a profitable business that you could lose at any time. Do you have any insights on linehaul vs P&D? I am evaluating whether or not to move from a paid position into this business as an opportunity and am trying to understand the reality of what contractor and ownership would be.

 

[FedX ChaSpa]

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

FEx pulled your contracts and you lost your business?

 

[bacha29]

You’ve been operating routes since ‘96? There are a lot of negative posts about being a contractor, and it not being a profitable business that you could lose at any time. Do you have any insights on linehaul vs P&D? I am evaluating whether or not to move from a paid position into this business as an opportunity and am trying to understand the reality of what contractor and ownership would be.

Want to know what it's like? Perhaps I can help you. It falls in somewhere between trendy share cropping and politically correct slavery.