What are the day-to-day operations of these routes?
To summarize, distributor takes delivery of the order and then delivers to existing food service accounts.
What are the current average sales and gross income for these routes?
Currently these routes average $24,690 in weekly sales, and profit $242,632 per year in gross income. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor, distributors are compensated by how much product they purchase from the bakery versus what they sell. These route currently average $24,690 in gross weekly sales and profit an average of 18.9% ($242,632 yearly or $4,666 per week).
How much can I make?
$4,666 per week is the weekly income 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. However if you need money, 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), fuel, vehicle maintenance, employee salaries 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 $3,813 per week in expenses/overhead or $198,276 per year (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase).
What type of insurance do I need?
Current insurance requirements are $2 million of general liability and $2 million for auto liability, or $1 million of general liability and $1 million of auto liability with a $1 million umbrella policy. 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 vehicles do I need?
Included in the purchase are a 2006 Ford E-350, a 1999 Ford E-350 and a 2012 Ford E-350. Common delivery vehicles used for this type of business are box trucks, large vans, 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 routes is $242,632 per year, minus your above mentioned expenses of $198,276 gives you an estimated $44,356 in net income or cash flow yearly.
How does the selling price of the route get determined?
Route valuations are determined by using a ratio based on the weekly sales average of the business. The selling price of this route is $170,000 based on a weekly sales average of $24,690; this places the business at a selling ratio of approximately 6.9:1. Sellers may use different valuation methods based on fair market comparable sales, but typically the weekly sales average is used to determine the selling price.
Do I have to pay for inventory or purchase product up front?
The distributor is compensated based on product they purchase and sell from the bakery. Note: The distributor does not incur out of pocket expenses when purchasing the 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 distributor agreement that lays out the relationship between the parties, obligations of each party, and describes the distribution rights that the distributor owns.
Why is the distributor selling?
The owner is downsizing.
How long has the seller owned the routes?
Current owner has owned one route for 6 years and the other routes for 8 years.
How many accounts do the routes have?
Currently there are a total of 90 food service, schools , nursing homes and plants accounts.
How many days a week, and what hours do distributors work?
Current distributor hires 3 employees that work 5 am – 3 pm, 5 days per week – taking Tuesday and Sunday off. Customers service requirements for the distributor will vary from account to account. Crown Bakeries’ interest is that customers are serviced according to customer service requirements.
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 RouteRelief.com. Route Relief® 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?
Minimum requirements: to attend an interview for approval from the company, a background check, form a corporation, and completion of training if approved. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Crown bakeries produces biscuits, croissants, bagels, buns, and much more! Route is recession proof, and located in a solid, stable, productive area. Bread routes are currently the highest demanded distributorships. “Drop and Go” accounts with no merchandising. Turnkey, start making money the week you take over. Backed by a publicly traded company on the NYSE. Drivers in place for a semi-passive opportunity! Priced to sell at $186,500! Contact Us About This, Route Here!