What are the day to day operations of this route?
To summarize, you will deliver product to existing accounts that include grocery stores and cash accounts usually starting in the morning hours. Your responsibilities will include the following: Evaluate and creating an order of product needed for the shelf, pull the order from your inventory, receive the order through the back door, and then fill the order to the shelf. After servicing your accounts for the day you will proceed to the warehouse to pick up additional product for deliveries the following day.
What are the current average sales for this route?
Currently this route averages $2,543 per week in sales/purchases or $132,236 per year. Documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor you purchase product at cost and sell it to retail accounts at wholesale. Product has a markup of an estimated 28%-36% depending on whether it is a corporate or cash account. 75% of this routes volume is cash sales! Current distributor receives an estimated gross profit of $865 per week.
How much can I make?
$865 per week is the routes weekly average, or a gross of $44,959 per year! This number can be increased, by up selling within your designated territory, soliciting new accounts. Route values can also be increased by new stores opening, new product lines being added, and simple inflation.
Can I finance the route?
Need Money? You can review additional Financing Options Here. There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle repair, payroll, handheld computers, account service fees, stale or damaged product, insurance for your vehicle, and liability insurance for your business. The current owner estimates $278 per week or $14,456 per year in expenses/overhead.
What type of vehicle do I need?
There is no vehicle included with the business. Common delivery vehicles used for this type of business are vans, box trucks or small cargo trailers.
What is the Gross vs the Net income?
The gross income for the route is $44,959 per year, minus your $14,456 estimated yearly expenses as mentioned above gives you the net of $30,503 per year!
How does the selling price of the route get determined?
On average Bon Appetit routes determine the selling price of their route by using up to a 2 multiple of their yearly cash flow/net income, plus assets.
Do I have to pay for inventory or purchase product up front?
No, you do not have any out of pocket expenses when purchasing your inventory. You are however responsible for any inventory that cannot be accounted for through your sales. As long as you run the business as it is designed to operate, you will not have any out of pocket expenses or losses.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Bon Appetit. In turn the company agrees to promote and assist you in growing your business. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner is selling due to husband’s health.
Where is the warehouse located?
Located within the routes territory.
How many accounts does the route have
The route consists of an estimated 60 stops ranging from gas stations, c-stores, and independent accounts. Some examples include: Pantry, Johnson & Johnson, Citgo, and more.
How long has the seller owned the route?
Current owner has owned the route for 5.5 years.
How many days a week, and what hours do distributors work?
The new owner will service accounts from Monday thru Friday with Saturday with Sunday’s off, servicing accounts on average from 7am-4pm.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. Additionally there are previous distributors for hire that are familiar with route distributorship type businesses.
What is required in order to qualify for purchase?
Typically, most company routes or distributorships will require you to attend an interview for approval from the company, background check, and in most cases require the buyer to form some type of entity such as an LLC or Corporation. This not only protects the company, but also ensures protection of your business. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
The company continues to be aggressive promoting growth and adding new product lines… Extremely large route with endless potential! Hesitate on this one and it will be gone! Owner has communicated route has plenty of growth potential, but she has been unable to expand due to husbands health. All accounts continue to be in good standing. Priced to sell at $40,000! Contact Us About This Route Here!
How can I learn more about these type of routes?
For additional consulting services with one of our route specialists Contact Us Here!