What to expect from a Fleet Owner

iheartfaye · Nov 14, 2004

Hi all,

I plan to start with Panther II soon but am waiting to be hooked up with a Fleet Owner with a cargo van. I browsed the classified ads to see what I should expect but they vary pretty much.

1) The cut usually seems to be 60/40. I assume this is fleet owner/driver?

2) Some of the fleet owners say the driver pays fuel and tolls while other fleet owners pay fuel. Is it really worth it to drive for a fleet owner if you are paying for fuel?

3) One fleet owner expects you to stay out 4-6 weeks at a time. What is reasonable to offer a fleet owner?

Any other advice would be greatly appreciated.

Iheartfaye

Glen Rice · Nov 14, 2004

A lot depends where you live and were you're expected to run. 6 weeks sounds rediculous to me in a "B" unit, I would think 2 to 3 weeks would be the norm. I hear quite often that your unit size makes it by the house once a week or within two weeks, simply because the freight takes them there. That certainly sounds more likely. As far as percentages with you the driver getting 60% and buying the fuel and tolls that also is standard practice in the industry. With fuel prices being what they are it would be in the owners best interest to go that way, and it is good for you in that you will squeeze every productive mile out of each gallon. Everyone that has owned multiple trucks can tell you a good concervative driver can make you money. Sorta like be good to your equipment and it will be good to you. Good luck and keep us posted how you do. Thanks for the great question.

iheartfaye · Nov 14, 2004

Thanks Glen,

The 2-3 weeks average seemed to be what most of the Fleet Owners asked for.

I do want to clarify the percentages you mentioned. 60% for the driver based upon the driver paying fuel and tolls? Or is it 60% for the Fleet Owner with the driver paying fuel and tolls?

Also, I live in Cincinnati so I would think I would pass by home or be near home quite a bit. Does that sound right?

Thanks,

Iheartfaye

RichM · Nov 14, 2004

Usually the driver gets the 60% and pays for fuel and tolls.You might be able to negoiate other road expenses such as the owner buying you a motel room once a week etc. As Glen said 2-3 weeks in a van is normal.I would shy away from someone who wanted you to stay out for 6 weeks,but living in Cincy should get you home often. One other important item and I have to stress this.GET IT ALL IN WRITING. This forum is full of stories about owners not living up to their handshake agreement and drivers walking out leaving the vehicle 500 miles away. Good Luck

davekc · Nov 15, 2004

Good advise. Get references from previous drivers as well. The more information you have, the better your decision will be.
Davekc

Fkatz · Nov 15, 2004

HI,

1. I ONLY HAVE A FEW THINGS TO SAY ABOUT OWNERS, CHECK THEM OUT THROUGHLY WITH THE B.B.B, ATA, OOIDA, AND WITH OTHER DRIVERS TO SEE IF THERE ARE ANY COMPLAINTS ABOUT DRIVERS NOT GETTING THERE FAIR SHARE.

2.MAKE SURE EVERYTHING IS PUT INTO A WRITTEN CONTRACT BETWEEN YOU AND THE OWNER, HAVE IT CHECKED OUT WITH YOUR OWN LAWYER BEFORE YOU SIGN. AND READ THE FINE PRINT SLOWLY TO MAKE SURE THAT THERE IS NO WAY HE CAN HOLD YOU RESPONSIBLE FOR SOMETHING YOU KNOW THAT YOU DID NOT D0.

3. THERE ARE A FEW THINGS WITHIN THE CONTRACT THAT SHOULD BE SPECIFIED.
a.THE NORMAL SPLIT BETWEEN IS DRIVER- 60% OWNER- 40 % YOU PAY FUEL, TOLLS. YOU WILL RECIEVE A 1099 MISC. AT THE END OF THE YEAR. IT IS YOUR RESPONSIBILTY TO REPORT THIS INCOME ON A SCHEDULE C PROFIT OR LOSS FROM BUSINESS OR PROFESSION.ON YOUR FEDERAL AND STATE TAX AND PAY THE TAXES OWED (IF ANY) OWNER MUST SEND YOU A FORM 1099 MISC AND BE POSTMARKED BY JANUARY 31 OF EACH YEAR. IF YOU DO NOT RECIEVE ONE HE IS NOT REPORTING TO THE IRS AS INCOME TO HIM ALSO

b.DRIVER HAS THE LEGAL RIGHT TO COPIES OF THE ORIGINAL SETTLEMENT SHEETS THAT THE OWNER RECEIVES FROM THE COMPANY TO SEE IF HE IS BEING PAID CORRECTLY, THIS IS DUE TO THE FACT THAT SOME OF THE OWNERS WILL AND DO SHORT THERE DRIVERS. NOT ALL OWNERS ARE HONEST.
c. WHAT DOES DRIVER HAVE TO PAY FOR IN ADDITION TO FUEL AND TOLLS. THAT WOULD BE TAKEN OUT OF THE SETTLEMENT.
1. IF OWNER SAYS FUEL TAX:
2. SATELLITE CHARGES FOR LOADSHE WANTS TO MAKE $$$ THEN HE PAYS FOR THIS. IF HE CAN'T GET LOADS ITS HIS FAULT.
3. IF OWNER SAYS THAT THERE IS A 10% HOLD FOR MISC
EXPENSES,

IF ANY OF THE THREE THAT ARE LISTED ABOVE AS A DEDUCTION TO YOU ESPECIALLY THE LAST ONE WALK AWAY AND FIND ANOTHER OWNER

tHESE BELOW ARE NORMAL DEDUCTIONS

iF HE STATES THAT THERE IS A $1000.00 ACCIDENT DEDUCTIABLE THAT WILL BE DEDUCTED, HOW MUCH PER WEEK UNTIL PAID AND MUST HAVE A RUNNING TOTAL BALANCE SHOWING YOU WHAT WAS PAID.
iS THIS ACCIDENT INSURANCE DEDUCTIABLE FULLY REFUNDABLE TO YOU IF NO ACCIDENTS ARE INCURRED. AND IF NOT 100% WHAT IS THE AMOUNT THAT THE OWNER KEEPS AS BOOKKEEPING FEES. NORMALLY $100-200.00 MAX.

oCCUPATIONAL INSURANCE OR WORKMENS COMP.

OCCUPATIONAL IS NORMALLY OFFERED THROUGH THE COMPANY LEASED TO, THIS CAN BE NEGOCIATED WITH THE OWNER. THIS IS ANYWHERE BETWEEN $20.00
-35.00 PER WEEK

IF OWNER IS INCORPORATED, THEN IT IS HIS RESPONIBILITY TO SUPPLY THIS WORKMEN COMP, IT IS PART OF THE CORPORTATION LAWS.
TRIP-PAK, THATS $4.50 PER WEEK PER VEHICLE, NOT AS AN INDIVIDUAL
SO IF A TEAM THEN ONLY $2.25 WOULD BE TAKEN OUT FOR EACH DRIVER. NOT $4.50
IF THERE ARE ANY QUESTION PLEASE DO NOT HESITATE TO ASK ON MY FORMUM

FRANKLIN KATZ
FRANKS TAX & BUSINESS SERVICE

blackpup · Apr 23, 2011

Fkatz said:
HI,

1. I ONLY HAVE A FEW THINGS TO SAY ABOUT OWNERS, CHECK THEM OUT THROUGHLY WITH THE B.B.B, ATA, OOIDA, AND WITH OTHER DRIVERS TO SEE IF THERE ARE ANY COMPLAINTS ABOUT DRIVERS NOT GETTING THERE FAIR SHARE.

2.MAKE SURE EVERYTHING IS PUT INTO A WRITTEN CONTRACT BETWEEN YOU AND THE OWNER, HAVE IT CHECKED OUT WITH YOUR OWN LAWYER BEFORE YOU SIGN. AND READ THE FINE PRINT SLOWLY TO MAKE SURE THAT THERE IS NO WAY HE CAN HOLD YOU RESPONSIBLE FOR SOMETHING YOU KNOW THAT YOU DID NOT D0.

3. THERE ARE A FEW THINGS WITHIN THE CONTRACT THAT SHOULD BE SPECIFIED.
a.THE NORMAL SPLIT BETWEEN IS DRIVER- 60% OWNER- 40 % YOU PAY FUEL, TOLLS. YOU WILL RECIEVE A 1099 MISC. AT THE END OF THE YEAR. IT IS YOUR RESPONSIBILTY TO REPORT THIS INCOME ON A SCHEDULE C PROFIT OR LOSS FROM BUSINESS OR PROFESSION.ON YOUR FEDERAL AND STATE TAX AND PAY THE TAXES OWED (IF ANY) OWNER MUST SEND YOU A FORM 1099 MISC AND BE POSTMARKED BY JANUARY 31 OF EACH YEAR. IF YOU DO NOT RECIEVE ONE HE IS NOT REPORTING TO THE IRS AS INCOME TO HIM ALSO

b.DRIVER HAS THE LEGAL RIGHT TO COPIES OF THE ORIGINAL SETTLEMENT SHEETS THAT THE OWNER RECEIVES FROM THE COMPANY TO SEE IF HE IS BEING PAID CORRECTLY, THIS IS DUE TO THE FACT THAT SOME OF THE OWNERS WILL AND DO SHORT THERE DRIVERS. NOT ALL OWNERS ARE HONEST.
c. WHAT DOES DRIVER HAVE TO PAY FOR IN ADDITION TO FUEL AND TOLLS. THAT WOULD BE TAKEN OUT OF THE SETTLEMENT.
1. IF OWNER SAYS FUEL TAX:
2. SATELLITE CHARGES FOR LOADSHE WANTS TO MAKE $$$ THEN HE PAYS FOR THIS. IF HE CAN'T GET LOADS ITS HIS FAULT.
3. IF OWNER SAYS THAT THERE IS A 10% HOLD FOR MISC
EXPENSES,

IF ANY OF THE THREE THAT ARE LISTED ABOVE AS A DEDUCTION TO YOU ESPECIALLY THE LAST ONE WALK AWAY AND FIND ANOTHER OWNER

tHESE BELOW ARE NORMAL DEDUCTIONS

iF HE STATES THAT THERE IS A $1000.00 ACCIDENT DEDUCTIABLE THAT WILL BE DEDUCTED, HOW MUCH PER WEEK UNTIL PAID AND MUST HAVE A RUNNING TOTAL BALANCE SHOWING YOU WHAT WAS PAID.
iS THIS ACCIDENT INSURANCE DEDUCTIABLE FULLY REFUNDABLE TO YOU IF NO ACCIDENTS ARE INCURRED. AND IF NOT 100% WHAT IS THE AMOUNT THAT THE OWNER KEEPS AS BOOKKEEPING FEES. NORMALLY $100-200.00 MAX.

oCCUPATIONAL INSURANCE OR WORKMENS COMP.

OCCUPATIONAL IS NORMALLY OFFERED THROUGH THE COMPANY LEASED TO, THIS CAN BE NEGOCIATED WITH THE OWNER. THIS IS ANYWHERE BETWEEN $20.00
-35.00 PER WEEK

IF OWNER IS INCORPORATED, THEN IT IS HIS RESPONIBILITY TO SUPPLY THIS WORKMEN COMP, IT IS PART OF THE CORPORTATION LAWS.
TRIP-PAK, THATS $4.50 PER WEEK PER VEHICLE, NOT AS AN INDIVIDUAL
SO IF A TEAM THEN ONLY $2.25 WOULD BE TAKEN OUT FOR EACH DRIVER. NOT $4.50
IF THERE ARE ANY QUESTION PLEASE DO NOT HESITATE TO ASK ON MY FORMUM

FRANKLIN KATZ
FRANKS TAX & BUSINESS SERVICE

Old newbie thread from 11/15/04

Found this post in the newbie archives. Frankly it brought up ideas that I never would have considered. Particularly the point about checking out fleet owners with the ATA.

Newbies like me might want check out the tax forum, which I had not done until seeing this post.

jimmy

paullud · Apr 24, 2011

How was the trip with Mr. Peabody and his time machine?

It has some great information for tax purposes as well, glad you were looking back as far as you did and were able to find it.

blackpup · Apr 24, 2011

paullud said:
How was the trip with Mr. Peabody and his time machine?
It has some great information for tax purposes as well, glad you were looking back as far as you did and were able to find it.

I think my eyes were crossed and pretty much glazed

jimmy