Frequently Asked Questions

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FedEx Ground is a federally regulated motor carrier that specializes in small package information, transportation, pickup and delivery, and provides services to the United States and Canada. FedEx Ground contracts with independent businesses that utilize their own employees to provide package pickup, delivery and/or transportation services to customers within an agreed upon service area. These independent businesses, or contracted service providers, retain authority to determine the best means to meet customer expectations and demands, including complete discretion over and responsibility for delivery work area configuration, route design, delivery sequence, type and number of equipment, and staffing and personnel decisions 

FedEx Ground refers to the independent businesses that it contracts with for transportation services as “service providers.”

These businesses are organized legally as corporations. They employ their own personnel, including drivers. They provide their own vehicles that they operate and maintain. Their profits are determined in large part by how efficiently they operate and how well they satisfy customers.s 

FedEx Ground contracts with independent businesses that are established as for profit corporations under state/provincial law in the United States or Canada, and not, for example, with LLCs, LLPs, sole proprietorships, partnerships or limited partnerships (LTDs). Businesses must be registered and remain in good standing in the states/provinces in which it is incorporated and in which it conducts business. FedEx Ground does not contract with businesses that have company names that conflict with or infringe upon FedEx trademark, copyright, and/or brand/customer service interests 

No. FedEx Ground and the contracted service providers do not have a franchise or franchisee relationship. As a corporate entity and employer, the contracted service providers have the sole right and obligation to determine how best to ensure that the agreed upon results are met. 

Contracting with FedEx Ground, independent businesses provide two types of services to FedEx Ground and its customers: 

•  Pickup and Delivery (P&D) — Using vans or small trucks, picking up packages from  shippers and transporting to the local FedEx Ground station — and, from the destination  station, delivering to business and residential recipients. 

• Linehaul — Transporting FedEx Groundowned trailers over the road from station to hub,  hub to hub, and hub to station — and, in some cases, between customer locations and  stations or hubs (“spotted trailers” or “spots”). 

As independent businesses, contracted service providers employ their own personnel, bearing all responsibilities for: 

• Employer related expenses, including wages, salaries, benefits, employment taxes,  unemployment insurance, workers’ compensation coverage, and any others mandated  by local, state/provincial and federal governments. 
• Payroll deductions, maintaining payroll and employment records, and complying with  all applicable local, state and federal/provincial laws (including wages, deductions,  overtime, rest and meal periods, etc.) including the U.S. Fair Labor Standards Act as  applicable.
• Training their personnel - Ensuring employees are legally authorized to work in the United States (or Canada as  appropriate).