What are the current average sales and gross income for this route?
Currently this route grosses $422,000 in yearly sales, and nets $60,000 per year. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor you are paid by purchasing product at wholesale cost and selling it to your customer base. This route currently receives an average profit margin of 40-45%.
How much can I make?
This route has a huge expansion and growth potential given the large territory. The yearly sales can be increased by new accounts being established, 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. You can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), gas, vehicle expenses, warehouse, payroll, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The above cash flow represents the profit after all said expenses are subtracted.
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?
The current owner runs this route with a GMC W4500 Freezer Box truck (150k miles), a Chevy 2500 Freezer Box Truck (150k miles), and is included with the purchase of the route (estimated $30k in vehicle assets). 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 $422,000 per year, minus your above mentioned expenses gives you $60,000 in net income or cash flow.
How does the selling price of the route get determined?
To determine a business’s price, a standard formula is to multiply 2 years of the net plus assets. Based on $60k net sales this business is under priced and includes $30k in assets.
Do I have to pay for inventory or purchase product up front?
Yes, the business requires you to purchase product at wholesale. A 4 pallet minimum is required for delivery, but additional discounts are available for larger purchases. Payment is required for product after 10 days. Start up inventory can be purchased through the company or current owner when acquiring the route (estimated $10k-$15k needed).
Who is responsible for damaged or out of date product?
You are responsible for the product you purchase. Blue Bunny has a shelf life of 1 year. 100% credit is given for damaged product purchased through the company.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Blue Bunny. 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.
Do I have to pay for additional freezers?
Existing freezers on location will be included with the route. Blue Bunny also offers a program to acquire additional freezers, and includes free repair and maintenance for the units.
Why is the distributor selling?
Owner is involved with other businesses.
How many employees are there?
1 additional employee is needed to help service the large territory. Current employee is willing to tranfer with business if given the opportunity. Payroll for this employee has already been subtracted from the gross, for a true net of $60,000 per year.
How many accounts does the route have and where is the warehouse located?
Currently there are over 300 accounts. Location of accounts and warehouse will be disclosed upon execution of an NDA.
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 distributorship for 6 years.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week Monday – Friday (6am – 4pm) with Saturday and Sunday off.
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 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?
Blue Bunny Ice Cream delivers nearly 500 tantalizingly tasty flavors, frozen dairy desserts and delectable novelties, and can be found throughout all 50 states and Mexico. HUGE territory and Growth opportunity to expand this business. Once you become the owner, there is the possibility to acquire additional territory through Blue Bunny at no charge! Hurry this won’t last long! Motivated Seller, priced to sell at $119,000 (only a 2 year ROI)! Contact Us About This Route Here!