Question for FedEx contractors regarding P&D contract

[Forrest Webber]

I'm new to the forum here and have a question regarding the FedEx ground contract (I'm currently in the process of purchasing 6 P&D routes). In the addendum's section of the contract, attachment 3.12 to addendum 3 (pages 19-20 for me..), it discusses the Primary Plus Payment. In the second to last paragraph of this addendum it states, "This Attachment 3.12 to Addendum 3 shall terminate on September 1, 2014 at 12:00am EST."

The way this is written it sounds like the Primary Plus quarterly payment will cease to exist. Have you been told that this is something that will be renewed via a new addendum come September? Any other information regarding this? If it is terminated it just affects the valuation of the business I am looking at, so it would be great to know. Thanks in advance for any help you can give.

 

[STFXG]

We've been told it is going away and the next contract will have something similar. Which means we will have something less. Don't plan on getting that payment. Your first fiscal quarter you don't get it. Just plan on getting whatever the new contract brings.


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[serco]

Every addendum in the contract ends September 1st each year. You resign before September each year.

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[Forrest Webber]

Yeah, I got that, but I noticed that this termination clause in 3.12 wasn't in a 2012-2013 contract I looked at, just a 2013-2014, which makes me think that they might do away with it.