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
Value evaluation of Fedex Route
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="dmac1" data-source="post: 4137547" data-attributes="member: 60252"><p>You are not buying a business. You are ONLY buying the right to finish out the contract, and maybe the vehicles if they have any equity. </p><p></p><p>Fedex has the right to fire you at any time and cancel the agreement. You have the right to hire an attorney, pay thousands of dollars, and fight their decision to fire you ONLY if they do it in mid-contract. If you win your challenge of termination, you will get the balance of the amount of profit you would have made from when they terminate you until when the contract would have ended. So if they terminate you 6 months before the contract is up, they only owe you the profit IF you win your wrongful termination arbitration case.</p><p></p><p> If you make $1000 a week in profit, you would win ~$25000, minus arbitration costs, and minus any taxes you would have paid on that $25000. At least you have 16 routes, so that means you are in a larger facility where the mgr's personal likes and dislikes won't matter as much. FEDEX is not required to renew the contract, or give you any notice. Technically, they need to inform you at some point that you aren't meeting standards, but that doesn't help much. Winning wrongful termination DOES NOT mean you get your 'business' back.</p><p></p><p>Costs to run can very greatly depending on the area. I would use a per mile cost for things like maintenance and fuel. Maintenance for a rural area with rough roads can be double a city route. Tires are expensive!!. You will have people quit, call in sick, etc, so you need more drivers than you think, and if you to 7 days, you may need two drivers per truck.. </p><p></p><p> If you can finance it all, and you can declare bankruptcy as a business if it doesn't work out, you aren't risking much. After all, Trump got rich borrowing money, paying himself first out of that borrowed money, and then declaring the business bankrupt after he had turned investors money into personal assets. You could run the trucks into the ground without setting up a replacement fund, overvalue them for tax purposes, depreciate the hell out of them, pay almost no taxes, and walk away after a couple years maybe making decent money. There are lots of wealthy people who do that- buy a business, pay themselves first, then walk away, then do it again. Vulture capitalists actively and proudly do it.</p></blockquote><p></p>
[QUOTE="dmac1, post: 4137547, member: 60252"] You are not buying a business. You are ONLY buying the right to finish out the contract, and maybe the vehicles if they have any equity. Fedex has the right to fire you at any time and cancel the agreement. You have the right to hire an attorney, pay thousands of dollars, and fight their decision to fire you ONLY if they do it in mid-contract. If you win your challenge of termination, you will get the balance of the amount of profit you would have made from when they terminate you until when the contract would have ended. So if they terminate you 6 months before the contract is up, they only owe you the profit IF you win your wrongful termination arbitration case. If you make $1000 a week in profit, you would win ~$25000, minus arbitration costs, and minus any taxes you would have paid on that $25000. At least you have 16 routes, so that means you are in a larger facility where the mgr's personal likes and dislikes won't matter as much. FEDEX is not required to renew the contract, or give you any notice. Technically, they need to inform you at some point that you aren't meeting standards, but that doesn't help much. Winning wrongful termination DOES NOT mean you get your 'business' back. Costs to run can very greatly depending on the area. I would use a per mile cost for things like maintenance and fuel. Maintenance for a rural area with rough roads can be double a city route. Tires are expensive!!. You will have people quit, call in sick, etc, so you need more drivers than you think, and if you to 7 days, you may need two drivers per truck.. If you can finance it all, and you can declare bankruptcy as a business if it doesn't work out, you aren't risking much. After all, Trump got rich borrowing money, paying himself first out of that borrowed money, and then declaring the business bankrupt after he had turned investors money into personal assets. You could run the trucks into the ground without setting up a replacement fund, overvalue them for tax purposes, depreciate the hell out of them, pay almost no taxes, and walk away after a couple years maybe making decent money. There are lots of wealthy people who do that- buy a business, pay themselves first, then walk away, then do it again. Vulture capitalists actively and proudly do it. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Value evaluation of Fedex Route
Top