Advice on a business proposal idea.

I would suggest you look at and figure up all your costs first. It sounds like you want to run under his authority and insurance. Once you know your cost of operation in CPM (cents per mile) you could compare that to the revenue offered and the distance the loads travel. Then you would know if it was profitable.

Since you are in Canada, it might be cents per kilometer. IMHO, you need some method to measure revenue against the hours you work and the amount of wear and tear on the equipment.

I don't know how insurance is in Canada but your amount of experience would likely be a problem in the U.S. It would cause a substantial increase in the rate. So you might want to look into that.

If it looks profitable and you can make it work, just be aware that this type of situation can change quickly. An arrangement like this with a small outfit can be very profitable but it can be here today and gone tomorrow. If you do this have a backup plan. You really should have a backup plan for any arrangement you go into, but I think it is especially important in a situation like this.

On the subject of negotiating a profitable contract, in the U.S. this would need to be a lease agreement. The percentage paid to the truck would depend on who furnished the trailer and what items were charged back to the truck. The items charged back might include trailer rent, base plates, permits, fuel taxes and possibly insurance or a portion of it.

Here we would generally expect to furnish at least the truck, unlaiden liability, workmen's comp and health insurance if desired. Base plates and permits are often charged back to the truck and taken out weekly over the first 20 - 30 weeks of a new lease and again at the beginning of each year. Fuel taxes are usually taken out quarterly when due. Some companies deduct trailer rent weekly and some have it factored into the percentage they pay.

One thing that concerns me is the amount I believe I have seen quoted for base plates in Canada. I seem to remember seeing figures in excess of $10,000 and think that that may include insurance???? You need to check into this.

If I were the man with the loads, the trailers and a small operation here's what I might offer. I would cover the insurance, if it were affordable, and factor it into the percentage I get. I would furnish the trailer, if I had one available, and factor it in. I would require you to bring the truck, base plates, unlaiden liability and workmen's comp if required. I would cover the fuel tax if you were smart about your fuel purchases. As far as percentage I don't have any real-world numbers to crunch but I expect I might offer 80% - 85% to the truck.

There probably are differences between our jurisdictions that I don't know or understand that would affect the information I am offering so I don't know how useful it will be.