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I'm looking at buying some routes.
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<blockquote data-quote="ex2fedex" data-source="post: 1685198" data-attributes="member: 58849"><p>Before you buy, know that you are paying for a business and buying equipment to service that business when in actuality the business has no guarantee of renewal at the end of your contract even if you provide excellent service. Not only that, terminal managers hand out OTC (opportunity to cure) letters like candy now for things like hours of service, or being shorthanded and running below a 98.5% local inbound for three days in a row, or even for paying for your scanners a day late. Six out of seven businesses in the building I was just in have gotten them. Whole buildings have gotten them. If you get one of those within the last 18 months of your contract you lose exclusive rights to negotiate and they can hand your contract over to anybody that puts in for it. I provided great service and they gave my contract to somebody else that wasn't even a functioning business in my state and wasn't ready to operate.</p><p>Mysteriously this other business that didn't have any drivers yet calls one of my drivers the day after my contract ended and offered him a job. I'm still trying to figure out how they got his number but I got a pretty good idea. My two drivers that are there now are making $30 less per day for the same amount of work than they would be making for me while the new business owners who just acquire routes and hire managers live in another state sitting around in their million dollar homes. They get a route valued around 200k to 300k for nothing and provide lousy service because most of my drivers didn't switch over to them and they are short around 5 drivers, and I spend over a decade contracting with them providing excellent service, and keep enough drivers with low turnover and I walk away with a few high mileage delivery trucks.</p><p>You only own the trucks. Here is a section of my contract that you might want to read before you finance into the six figures for a route and equipment.</p><p></p><p><strong>15.4 Extension of Expiration or Termination Date. </strong>The Parties acknowledge that this</p><p></p><p>Agreement has no provision for renewal or automatic renewal and further acknowledge that there is no express or implied obligation upon either Party to enter into a subsequent agreement for the Services upon the expiration of this Agreement. However, if the Parties agree in writing, either the Expiration Date or the Termination Date of the Agreement may be extended in weekly increments one or more times not to exceed 52 weeks in total ("Extension Period") beyond the original Expiration Date or Termination Date. No oral agreement to extend this Agreement will be effective. The level of Charges at the Termination Date or Expiration Date will continue in effect through any Extension Period.</p></blockquote><p></p>
[QUOTE="ex2fedex, post: 1685198, member: 58849"] Before you buy, know that you are paying for a business and buying equipment to service that business when in actuality the business has no guarantee of renewal at the end of your contract even if you provide excellent service. Not only that, terminal managers hand out OTC (opportunity to cure) letters like candy now for things like hours of service, or being shorthanded and running below a 98.5% local inbound for three days in a row, or even for paying for your scanners a day late. Six out of seven businesses in the building I was just in have gotten them. Whole buildings have gotten them. If you get one of those within the last 18 months of your contract you lose exclusive rights to negotiate and they can hand your contract over to anybody that puts in for it. I provided great service and they gave my contract to somebody else that wasn't even a functioning business in my state and wasn't ready to operate. Mysteriously this other business that didn't have any drivers yet calls one of my drivers the day after my contract ended and offered him a job. I'm still trying to figure out how they got his number but I got a pretty good idea. My two drivers that are there now are making $30 less per day for the same amount of work than they would be making for me while the new business owners who just acquire routes and hire managers live in another state sitting around in their million dollar homes. They get a route valued around 200k to 300k for nothing and provide lousy service because most of my drivers didn't switch over to them and they are short around 5 drivers, and I spend over a decade contracting with them providing excellent service, and keep enough drivers with low turnover and I walk away with a few high mileage delivery trucks. You only own the trucks. Here is a section of my contract that you might want to read before you finance into the six figures for a route and equipment. [B]15.4 Extension of Expiration or Termination Date. [/B]The Parties acknowledge that this Agreement has no provision for renewal or automatic renewal and further acknowledge that there is no express or implied obligation upon either Party to enter into a subsequent agreement for the Services upon the expiration of this Agreement. However, if the Parties agree in writing, either the Expiration Date or the Termination Date of the Agreement may be extended in weekly increments one or more times not to exceed 52 weeks in total ("Extension Period") beyond the original Expiration Date or Termination Date. No oral agreement to extend this Agreement will be effective. The level of Charges at the Termination Date or Expiration Date will continue in effect through any Extension Period. [/QUOTE]
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