THE CITADEL GUIDE: LEASING ON WITH VANHAULERS

Welcome to VanHaulers. We don't hire employees; we partner with business owners. This guide explains exactly how our Leased-On Owner-Operator program works under our operating authority, designed to keep your business asset-light, scalable, and highly profitable.

1. THE PROGRAM FOUNDATION

You own or operate the high-roof cargo van/Sprinter. We provide the active operating authority. By leasing onto our authority, you operate under our commercial USDOT and MC numbers, gaining immediate access to premium expedited freight networks that are locked to newer or smaller fleets.

Independent Contractor Status: You are a 1099 Independent Contractor. You retain sole control over when you work, where you run, and which loads you accept. There is absolutely NO forced dispatch or mandatory routes.

2. THE REVENUE SPLIT & PAYOUT SPEEDS

We believe in passing the maximum possible revenue back to our operators to incentivize growth and equipment utilization:

• The Industry’s Best Split: You retain 80% of the gross invoice on every load. Our administrative/dispatch fee is a flat 20%.
• ZERO Hidden dispatch Fees: Unlike other carriers who take an administrative split and then deduct a separate 8% to 10% "dispatching fee" off the top, VanHaulers includes all load-sourcing, back-office invoicing, safety compliance, and professional dispatch support directly in our 20% cut.
• Same-Day Capital Flow: To keep your business cash flow moving, we utilize a high-volume non-recourse factoring facility. You receive your payout via direct ACH deposit within 24 hours of uploading your clean, signed proof of delivery (POD) and Bill of Lading (BOL) to the Carrier's dispatch portal. No waiting 30 to 45 days for broker checks to clear.

3. THE PREMIUM CARRIER STANDARD (SAFETY & CARGO SECURING)

A vehicle is only defined as a Commercial Motor Vehicle (CMV) by the FMCSA if its GVWR is 10,001 lbs or more. Because high-roof cargo vans and Sprinters operate under this weight class, they are technically exempt from federal Driver Qualification (DQ) file regulations. At VanHaulers, we respect this exemption and allow you to onboard without a DOT Medical Card if you choose. However, we highly prefer and recommend that you carry one for several reasons:

• A. Boarding with Elite Expedite Brokers: Premium expedited load brokers are highly protective of their shippers' high-value freight. In response to recent negligent hiring court rulings, elite brokerages use automated onboarding systems to vet carriers. These networks block or automatically reject carriers whose drivers do not maintain basic safety profiles—such as driver medical cards and clean MVR verifications—regardless of the lighter weight class of their vans. Operating without a medical card may limit the quantity and quality of high-paying lanes you can access.
• B. Maintaining Our Fleet Insurance Rates: Our commercial fleet insurance underwriters require a clean 3-year state CDLIS MVR and a valid DOT Medical Card to schedule your vehicle under our primary liability policy for the lowest possible rate.
• C. Mandatory Cargo Strapping & Securing: To prevent shifted cargo and damaged shipments, every leased vehicle must maintain a minimum of four (4) heavy-duty commercial ratchet straps, OR cargo load bars, strapping systems, or cargo netting (E-track systems or heavy-duty anchor D-rings are highly recommended) at all times. All cargo must be securely strapped and blocked prior to rolling. Protecting our customers' cargo is our absolute priority. (Note: If you do not carry these securements, you can still onboard, but you will be restricted to hauling small boxed cargo that doesn't require strapping. This will limit your load options and make finding consistent runs significantly harder, so we highly recommend getting straps as soon as possible).
• D. Mandatory GPS Tracking & Smartphone Requirement: Premium expedited brokers (such as C.H. Robinson, Coyote, RXO, etc.) track load progress in real time. Drivers are required to maintain a functioning smartphone with an active data plan and run tracking apps (such as MacroPoint, Project44, or Trucker Tools) for the duration of every dispatch. Turning off location tracking, refusing a tracking link, or disabling location permissions violates our carrier standards and passes any resulting broker fines (typically $150.00 to $250.00 per occurrence) directly to the operator's weekly settlement.

By framing compliance as a Premium Carrier Standard, we position our entire fleet as a highly professional, top-tier operator. While we allow flexibility on non-mandatory federal requirements, holding these safety credentials and technology standards unlocks the highest-paying expedited lanes in the country.

4. FLEXIBLE COMMERCIAL INSURANCE PROGRAM

To accommodate both new owner-operators and established partners with private coverage, we provide two distinct insurance pathways:

• Pathway A: Scheduled Fleet Auto Model (Default)
  If you do not own a commercial policy, we schedule your vehicle directly under our Carrier Commercial Fleet Policy ($1,000,000 Auto Liability and $100,000 Cargo Liability).
  • Weekly Settlement Deduction: A simple chargeback of $154.62/week is deducted from your settlements (computed from our standard fleet rate of $670.00/month).
  • The Fixed Inactive Rule: This weekly premium deduction is a fixed cost and is due every single week that your van is scheduled on our active policy, regardless of weekly mileage, active loads, vacation, or breakdowns.
  • Bobtail Requirement: You must carry Non-Trucking Liability (Bobtail) and Physical Damage insurance at your own expense to cover off-duty personal miles.
• Pathway B: Contractor-Provided Insurance Model
  For trusted recruits who already carry their own commercial coverage.
  • Weekly Settlement Deduction: Exactly $0.00/week.
  • Primary Policy Limits: You must maintain at least $1,000,000 Primary Commercial Auto Liability and $100,000 Cargo coverage.
  • Endorsement Rule: You must add VanHaulers Co as an Additional Insured and Certificate Holder on your policies. Your agent must email the COI and the signed verification form directly to recruit@vanhaulers.com.

5. RISK MITIGATION & ESCROW ACCOUNT

To protect the operating scale against unpaid tolls, factoring chargebacks, or insurance deductibles, all leased operators establish a $1,000.00 Reserve Escrow Account:

Gradual Accumulation: There is no large upfront cash requirement. Your escrow is built up gradually by deducting a flat $100.00/week from your first ten (10) settlements. This escrow is 100% refundable within 45 days of lease termination, ensuring all final toll bills and broker invoices have fully cleared first.

6. MID-ROUTE BREAKDOWNS & CARGO RECOVERY

Because expedited freight is subject to strict delivery windows, in the event that your vehicle suffers a mechanical breakdown, accident, or other disabling event while under active dispatch, VanHaulers will immediately initiate a cargo recovery operation to get the load to the receiver on time. As an independent contractor, you are 100% legally and financially responsible for your own vehicle maintenance and towing. The financial recovery mechanics are governed as follows:

• Pro-Rated Payout: You will only be compensated on a pro-rata basis for the actual percentage of loaded miles completed from the origin point to the exact location of the breakdown.
• Recovery Deduction: The total cost of dispatching a recovery vehicle (whether sourced from our leased fleet or an outside third-party carrier) to complete the remaining transit mileage is deducted directly from your pro-rated gross cut of the load.
• An Operational Example (The $1,500 Load):
  Scenario: You are dispatched on an expedited load paying $1,500.00 total gross with a route of 800 miles. At mile 400 (exactly 50% completed), your alternator fails.
  
  1. Your Pro-Rated Share: Since you completed 50% of the miles, your share of the load is pro-rated to 50%. Your gross earnings are cut from $1,200.00 (your 80% split) down to $600.00.
  2. The Recovery Vehicle: VanHaulers dispatches a second fleet vehicle to transfer the cargo and haul it the remaining 400 miles to the receiver. The recovery driver is paid $600.00 (their pro-rated 80% split for the remaining 50% of the miles).
  3. Margin Safety: This math ensures that the Carrier’s flat 20% dispatch split of $300.00 remains completely untouched and protected. The financial risk of equipment failure remains entirely with the owner-operator.
• Incident Fees: Any secondary expenses such as emergency towing, transloading fees, side-of-the-road labor, or storage facilities will be charged back in full to your account and deducted from your pending settlements or escrow.

7. THE RAW TRUTH: WHAT IT TAKES TO SUCCEED