Owner Operator Business
Lease On (Lease Agreement)
Leasing on is when an owner operator contracts their truck and driving services to a motor carrier, operating under that carrier's USDOT and MC authority instead of their own. The lease agreement sets the revenue split or per-mile rate, equipment and insurance requirements, and each party's responsibilities, and is required under FMCSA truth-in-leasing regulations (49 CFR Part 376) when an owner operator runs under another carrier's authority.
When an owner operator leases on to a carrier, they run that carrier's freight under the carrier's operating authority and DOT number rather than their own, in exchange for a negotiated pay structure (percentage of load revenue or a per-mile rate) and access to the carrier's freight network, fuel discounts, and dispatch support. FMCSA's truth-in-leasing rules require a written lease agreement specifying payment terms, chargebacks, and responsibilities for items like insurance and maintenance, intended to protect owner operators from unclear or unfair terms. Lease-on terms are a major factor owner operators evaluate when choosing which carrier to run for, often as important as the advertised per-mile rate itself.
Why it matters for recruiting and operations
Clear, FMCSA-compliant lease terms are both a legal requirement and a major recruiting differentiator for carriers courting owner operators, who often compare lease terms across several carriers before committing. Recruiters working owner operator leads should be ready to explain settlement structure, chargebacks, and fuel surcharge handling clearly, since vague answers here are a common reason owner operator prospects choose a different carrier.
Related terms
Where this shows up in Fleegital
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