You act like you know it all witch nobody does. FedEx is a great investment, but with lots of risk and with lots of rewards. You have to do your research before you by in if you buy routes less than 5 psa or 500 stops then you failed your research and know your numbers and you better have help from someone with experience. If you think u can buy in fedex and just become successful then your crazy. Ten years of experience has made me and my crew what it is today. 1 truck to 25 in two terminal and 7 line hauls. I've taken big risk I have failed a few times. If you buy after ISP has taken affect good luck getting in the game you better have big pockets. Fedex is great and has many flaws but what company in the US doesn't have flaws. Just my rant for today.You should wait a few years for all the legal issues to work themselves out, and see what actions various states take against the ISP model. You stand to lose your entire investment plus whatever value the vans have. I would never invest in a business that you know is undergoing such close scrutiny by all legal authorities, even if your state isn't directly involved.
Those selling routes, or even those who own routes have a vested interest in talking down the negative and talking up the positive. Just think about the natural bias they have to protect their own. IN 4-5 years, if the model stamds on firm legal footing, you will know. At this point, unless you are getting a discount for the legal issues, paying as much for a Fedex ISP business doesn't make sense. If the price you are paying is based off comparable businesses with similar income potential but without legal questions surrounding it, then you are not getting the fair price.
Maybe there are a lot of routes being sold for comparable prices, but there are a lot of naive people who see this as an easy business to understand and operate. If 1000 people across the country overpaid for a business frought with issues, it doesn't mean that you should pay the same price. It isn't like owning a home you overpaid for. At least you can live in a house if you can't sell it. But as I said, you may be paying for a 'business' that has no value at all in a few years. If you can find a bank to loan you money, as they will on a legitimate business, let the bank take the risk.
IN a few years, since value of a business is based on income compared to other businesses, you will still get the same value for your money without the legal questions if they are fully resolved.
You seem to have a bias against Fedex Ground. Why is that?
You act like you know it all witch nobody does. FedEx is a great investment, but with lots of risk and with lots of rewards. You have to do your research before you by in if you buy routes less than 5 psa or 500 stops then you failed your research and know your numbers and you better have help from someone with experience. If you think u can buy in fedex and just become successful then your crazy. Ten years of experience has made me and my crew what it is today. 1 truck to 25 in two terminal and 7 line hauls. I've taken big risk I have failed a few times. If you buy after ISP has taken affect good luck getting in the game you better have big pockets. Fedex is great and has many flaws but what company in the US doesn't have flaws. Just my rant for today.
You act like you know it all witch nobody does. FedEx is a great investment, but with lots of risk and with lots of rewards. You have to do your research before you by in if you buy routes less than 5 psa or 500 stops then you failed your research and know your numbers and you better have help from someone with experience. If you think u can buy in fedex and just become successful then your crazy. Ten years of experience has made me and my crew what it is today. 1 truck to 25 in two terminal and 7 line hauls. I've taken big risk I have failed a few times. If you buy after ISP has taken affect good luck getting in the game you better have big pockets. Fedex is great and has many flaws but what company in the US doesn't have flaws. Just my rant for today.
Well said!!!! These guys defending x are in from the beginning or close to it. They got their routes cheap or for free. So, of course they will defend it. If you buy I doubt you will get your original investment back. Invest elsewhere too much legal uncertainty and too much x rule changes. Buy something you really own.Yes, it will take some time, but in the meantime, your business becomes worthless. Fedex will roll out whatever change in one or a few states at a time. As soon as that happens, you won't be able to sell. If you can form a corp and borrow the money, it makes sense. Pay yourself all the profits while it lasts, then close the corp declaring bankruptcy.
If you can run an ISP, you can run an apartment building. I bought a small complex that needed repairs, mostly deferred maintenance, and doubled the value in two years. Even buying single family homes is safer. You can buy as many as 5 single family homes with $100k in many parts of the country. After debt service, maintenance, taxes, etc, you can pocket hundreds of dollars per unit per month. Even if you pay a manager, you can stil profit if you buy smart.
Don't sell yourself short by taking unnecessary risks. You know for certain that costs to operate will go up and the value of your trucks will go down every year.
Please. All those "hurt" by FedEx read the exact same contract I read and knew what was expected of them. It's true that X has played "fast and loose" but these "victims" chose to be there.I saw a lot of people hurt by fedex fraudulently claiming that they were operating with independent contractors when it came out later that fedex intentionally created the 'contractor agreement' solely as a basis for them to avoid costs.. Simple as that. As soon as the costs of the ISP model change, they will change again. Anyone thinking of buying needs to know the history of fedex, especially since all the same people are in positions of power. Their mindset has not changed.
I did get mine for close to free. But I have never and will never tell someone it is or isn't a good deal. Too many variables.Well said!!!! These guys defending x are in from the beginning or close to it. They got their routes cheap or for free. So, of course they will defend it. If you buy I doubt you will get your original investment back. Invest elsewhere too much legal uncertainty and too much x rule changes. Buy something you really own.
I did get mine for close to free. But I have never and will never tell someone it is or isn't a good deal. Too many variables.
However, to therefore determine it is a scam or not viable in the long term ignores the larger picture of franchising and contracting in the US. Fact is, X is much the same as all of them; taking advantage of profitable business law.[/
I will tell someone it is a bad deal because it is. Just helping the guy do his due diligence.
I did get mine for close to free. But I have never and will never tell someone it is or isn't a good deal. Too many variables.
However, to therefore determine it is a scam or not viable in the long term ignores the larger picture of franchising and contracting in the US. Fact is, X is much the same as all of them; taking advantage of profitable business law.
Correct. The law will not change. Therefore the model will continue to be tweaked, challenged, and tweaked.again. we have literally been hearing of it's impending demise for decades. Too much money to be made by those on top.It isn't me saying it is a scam. It is the courts who accused fedex of creating an employment contract in the guise of an independent contractor agreement. You should know by now that fedex has an entire set of manuals outside the contract that they use to tell you what they say the contract says, when those manuals may directly conflict with the contracts. If you think that all fedex goes by is exactly what is in the contract, you are willfully ignorant of the truth and playing 'see no evil' with yourself.
You seem unaware that those manuals are what the courts decided were the smoking gun that they made the ruling on. And if you think fedex tossed those manuals when they started the ISP model, I have a bridge to sell you.
And if you somehow expect current law to change in the US, you have not been following politics. Nothing gets done, unless absolutely necessary, and changing rules on IC determination is far from absolutely necessary. And for someone considering buying, for you to advise them that under future law, they will be fine, when current law leans the other way, then you are giving poor advice.
Would you buy a route now,if you wasn't in the game already?Correct. The law will not change. Therefore the model will continue to be tweaked, challenged, and tweaked.again. we have literally been hearing of it's impending demise for decades. Too much money to be made by those on top.
Oh, hell no!Would you buy a route now,if you wasn't in the game already?
But the stock trader who bought 10 routes is more than happy with them.Would you buy a route now,if you wasn't in the game already?
I was just curious. I see many people inquiring about buying routes. Just wondering how you would advise them.Oh, hell no!
I dont. Too many variables. But for the guy with $750 grand and looking at the growth potential and eventual sale, it tends to look like a very good deal.I was just curious. I see many people inquiring about buying routes. Just wondering how you would advise them.
Correct. The law will not change. Therefore the model will continue to be tweaked, challenged, and tweaked.again. we have literally been hearing of it's impending demise for decades. Too much money to be made by those on top.