As with anything, things change with time. As a founder of your franchise company we sometimes had to modify our franchise agreements while they came up for renewal for virtually every of a variety of reasons; new case law, new regulations, increased competition, streamlining the business model, or merely to keep from being cheated by rogue franchisees exploiting a loop-hole within our franchise agreement.
Now, I’ve heard that Federal Express is considering modifying most of their independent contractor agreements for his or her FED EX ground unit. Doesn’t surprise me one bit, the thing is that, FEDEX always looks like it’s mixing this to improve corporate profits. At least the past 30 years if not more we’ve been included in them as company vendor.
Today, it seems as if they have to have some former Xerox or GE people doing work in streamlining their operations, because such strategies are common there. Of course, FEDEX can be quite into efficiency, have you been to the Memphis Mid-Night Sort – amazing. Fred Smith is definitely an smart guy, and innovator – and he has got a kick-ass team there. Apparently, each independent contractor will need to run multiple units, not merely one.
I’d say this is a great idea for FED EX, smart for the kids, even though it could be damaging to an independent operators. The Independent would still must operate some of those units to generate income if they only had three units, and until they got to 5+ they’d have difficulty turning money due to costs, always increasing ObamaCare as an illustration, and the must cover routes, fix mistakes, and take care of the BS of getting multiple employees.
Now then, under these new contracts the independent contractors are able to take advantage of the economies of scale without a doubt services. Indeed, that’s interesting? I would have considered that they wouldn’t attempt that do for the Time-Mode-and-Manner requirements on the IRS to independent contractors rather than slip back in jeopardy to be labeled employees because of the court. But there is case law which might side with their go on to do this, however it is moving into gray area, but apparently, they’ve got this covered.
These opt-in services are going to be managed by FED Ex and make use of their buying and getting power. Oh, that is certainly an interesting strategy it’s really – yes, it truly is and it is smart, capitalizing on the economies of scale to the contractors. The financial planning industry works this way too, as well as several other sectors. As a research study, you can conclude that FED EX does a smart thing here, that can continue to deliver them strong productivity with lower overall costs.