FedEx contracts only with businesses that are established under state/provincial law as for-profit corporations and not, for example, with LLCs, LLPs, sole proprietorships, partnerships or limited partnerships (LTDs).
As independent businesses, contracted service providers (CSPs) employ their own personnel, bearing all responsibilities for:
FedEx refers to the independent businesses that it contracts with for transportation services as “contracted 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.
They are paid a contracted amount, based on the volume of packages delivered and/or contracted miles driven, along with other terms of the agreement.
They have the opportunity to expand their business, diversify as appropriate to their business, and increase their income potential.
The obligations of both "The Company" and contracted service providers are set forth in contractual agreements. In general, for contracted service providers (CSAs), agreement terms include the following: