Home » essay creator » Should Fed Ex Modify Their Independent Contractor Delivery Agreements? – Case Study

Should Fed Ex Modify Their Independent Contractor Delivery Agreements? – Case Study

Should Fed Ex Modify Their Independent Contractor Delivery Agreements? - Case Study

As with anything, things change over time. As a founder of a franchise company we often had to modify our franchise agreements as they came up for renewal for any of a number of reasons; new case law, new regulations, increased competition, streamlining the business model, or just to keep from being taken advantage of by rogue franchisees exploiting a loop-hole in our franchise agreement.

Now, I’ve heard that Federal Express is considering modifying many of their independent contractor agreements for their FED EX ground unit. Doesn’t surprise me one bit, you see, FEDEX always seems to be mixing it up to improve corporate profits. At least for the last 30 years or more we’ve been involved with them as service company vendor.

These opt-in services will be managed by FED Ex and use their buying and purchasing power. Oh, that is an interesting strategy isn’t it – yes, it is and it makes sense, capitalizing on the economies of scale for the contractors. The financial planning industry works like that too, along with several other sectors. As a case study, one could conclude that FED EX is doing a smart thing here, which will continue to deliver them strong productivity with lower overall costs.

Meaning everyone wins, especially the customer with better service, so please consider all this.

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