What are the day to day operations of this route?
To summarize, you will deliver product to existing accounts that include grocery stores and retail stores usually starting in the morning hours. Your responsibilities will include the following: evaluating 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.
What are the current average sales and gross income for this route?
Currently this route averages $7,722 in weekly sales and grosses $100,360 per year in commission. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor you are paid by commission. This route currently receives an average of 25% of its gross weekly sales of $7,772 ($1,930 per week).
How much can I make?
$1,930 per week is the routes weekly average! This number can be increased, by supporting the company’s promotions and up selling within your designated territory. Route values can also be increased by new accounts opening, new product lines being added, and simple inflation.
Can I finance the route?
There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons. If financing is needed you can review Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to route payment (if you finance): fuel, vehicle maintenance, handheld computer, stale or damaged product, warehouse and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $247 per week in expenses/overhead or $12,844 per year.
What type of insurance do I need?
Typically a single owner operator of a route distributorship will need commercial insurance for their delivery vehicle and business liability insurance. Owners with multiple employees will need a multiple vehicle policy and workers’ compensation. Routes For Sale® now offers discounts on insurance! Through our size and volume, we have partnered with some of the largest insurance brokers in the nation to offer the best rates. Request Your Free Insurance Quote Here.
What type of vehicle do I need?
There is no vehicle included in the purchase. Common delivery vehicles used for this type of business are box trucks or trailers. If you are considering purchasing, leasing or financing a vehicle you can review additional information here.
What is the Gross vs the Net income?
The gross income for the route is $100,360 per year, minus your above mentioned expenses of $12,844 per year gives you an estimated $87,516 in net income or cash flow.
How does the selling price of the route get determined?
All route sales are determined by a ratio based on a weekly sales average. The selling price of this route is $111,000 based on a weekly sales average of $7,722; you come up with a selling ratio of approximately 14.3:1.
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.
Who is responsible for damaged or out of date product?
You are responsible for stale or damaged product.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent the master distributor. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner is pursuing other opportunities.
How many accounts does the route have and where is the warehouse located?
Currently there are 19 accounts that include gas stations, grocery stores and discount stores. The location of the accounts and warehouse will be disclosed upon execution of a Non Disclosure Agreement.
Do I get paid full commission when something goes on sale?
When the company discounts an item for store promotions, you are paid full commission on the discounted selling price.
How long has the seller owned the business?
The current owner has owned this route and territory for 2.5 years.
How many days a week, and what hours do distributors work?
Distributor works 4.30am – 12pm, Monday through Saturday. Early morning hours are required.
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, you can network and hire distributors with previous route experience at RouteReliefDrivers.com. Route Relief® Drivers is a nationwide network that allows independent route distributors and vacation relief drivers to connect with each other. Each party negotiates its own terms and compensation.
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 form an 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?
Routes are recession proof, and this route is located in a solid, stable, productive area. Don’t hesitate on this one! Priced to sell at $111,000! Contact Us About This Route Here!
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