A beginners guide to owning and operating a FedEx Ground Businesses.. Brought to you buy Capital Route Sales! www.capitalroutesales.com

1. Capital Route Sales, Inc.
FedEx contracting presentation.

2. Mission statement:
Our mission is to help FedEx contractors create a strategic exit strategy,
that will sustain the new owner, business, and drivers into the future.
With our 7 years experience at FedEx Ground, our expertise is
unmatched to other intermediaries selling FedEx routes.

3. Independent Service Provider (ISP) Transition.

4. Milestones
March 11, 1985
On March 11, 1985, a startup company
called Roadway Package System (RPS)
put a label with 33 precisely spaced black
lines on the outside of a package. By
doing so, it changed the direction of the
small-package industry.
1996
RPS was a division of Roadway Services,
which became Caliber System Inc. in
1996. Independent contractor model
born.
1998-2000
RPS was officially rebranded FedEx
Ground in January 2000, FedEx Home
Delivery launched shortly after this.
Today
FedEx Ground has improved transit times
for more than half of its city-to-city
shipping lanes, making it faster to more
locations than UPS.

5. 3 divisions
FedEx Ground operates M-F
deliveries to business, & homes
performs pick ups.
FedEx Home Delivery operates T-
Sat deliveries to homes, &
businesses, no pick ups,
performs schedule evening
deliveries.
FedEx Line Haul, hours vary.
Dedicated- same run each
week, guaranteed mileage.
Undedicated-runs vary on
destination and mileage varies.

6. How it works:
Step 1
Inquire
-Sign NDA. Provide proof of
funds.
-Info packet sent to buyer.
-Q&A session held with seller
and buyer.
Step 2
Offer
-Deposit placed in escrow.
-30 day or less due
diligence.
-Purchase agreement
executed.
Step 3
FedEx Approval
-CR-030 and RFI turned into
FedEx.
-Interview process with
FedEx, 30 day vetting
process.
-Closing, contract signing at
local hub.

7. Revenue models
FedEx Ground
$1.67 per stop, $0.25 per
package.
$1.54 per pick up stop, sliding
scale of $0.26 to $0.10
Van availability $57.00 per day
on each PSA.
FedEx Home Delivery
$1.54 per stop, $0.26 per
package.
$1.54 per pick up stop, sliding
scale from $0.26 to $0.10
Premium Services $2.25 per
stop in addition to the rates
above.
Van availability $47.00
Line haul
Local run rates vary.
Dedicated base on mileage,
each run is slightly
different. Check
settlement.
Undedicated rates vary, check
settlement.

8. Monthly &
Quarterly
revenues.
ECCS, EPP

9. Quarterly bonus, EPP
Monthly bonus, ECCS
Eligible PSAs Quarterly Enhanced Primary Plus
Payment
2 $1,450.00
3 $3,150.00
4 $5,100.00
5 $7,300.00
6
$8,750.00
7 $10,200.00
8 $11,650.00
9 $13,100.00
10 $14,550.00
Payment of the ECCS bonus will be based on Contractor’s performance
in each of the PSA’s under contract for a full calendar month. $585.00
potential monthly bonus. No ineligible events FULL ECCS, 1 verified
complaint: HALF of ECCS for that PSA. Preventable accident: NO ECCS.
Out of service orders issued by law enforcement: NO ECCS, 1 or more
driver DQ in addendum 13 to the contract when driving a CMV: NO
ECCS, 1 or more verified complaint(s) due to signature or scanning
integrity: NO ECCS.