Contractor Requirements

FedEx Ground will contract only with entities that are:

  • established under state law as corporations,
  • are registered and in "good standing" with the state(s) in which they do business, and 
  • ensure personnel who provide services under the Operating Agreement are treated as employees.  
Contractors are obligated by the terms of their Operating Agreements to obtain FedEx Ground’s prior consent to a PSA transfer. When acquiring a service area, the purchase or sale price of a service area is determined by the buyer and seller without involvement from FedEx Ground; however, both parties must receive FedEx Ground’s consent to the assignment before it can be completed. Parties that have acquired businesses already under contract with FedEx Ground have found it useful to analyze – among other factors – the business's historical revenue over time, geographic service area(s), service history, safety record, liabilities, claims history, compliance history, vehicle maintenance history, vehicle registrations, insurance, and the terms and duration of Agreement(s) already in effect.

As part of the assignment process, an acquiring contractor will need to submit a response to FedEx Ground’s Request for Information, providing background information, customer service approach, safety history, and other information. This response will help FedEx Ground determine if the contractor is capable of achieving the contracted-for results.

FedEx Ground understands that parties interested in becoming an independent contractor for FedEx Ground may choose to use a broker to facilitate the transaction. For your protection, consultation with attorneys, accountants and business valuation specialists may also be appropriate.