What are the day to day operations of this route?
To summarize, you will start your day by picking up your bread order from the warehouse and then proceed to sell and deliver product to existing accounts that include popular grocery stores and convenience stores usually starting in the morning hours. Your responsibilities will include the following: provide customer service to each account, increase sales within each account, evaluate and create a product order for delivery, receive the order through the back door, and then merchandise the order to the shelf. Distributors are also encouraged to establish new customer accounts.
What are the current average sales and gross income for this route?
Currently this route averages $10,941 in weekly net sales, and profits $103,896 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. This route currently averages $10,941 in gross weekly net sales and profits an average of $103,896 yearly or $1,998 per week.
How much can I make?
$1,998 per week is the route’s weekly gross income average! This number can be increased, by supporting the customers promotions and up selling within your designated territory. Route values can also be increased by acquiring new customers within the protected territory, new product lines being added, and simple inflation.
Can I finance the route?
Yes, company related financing is available for qualified buyers at an estimated amount of $69,543 for 10 years or purchasers may seek individual financing. Additional qualifications require a background check and a 10% cash reserve of the selling price. Down payment for the remaining balance requires a certified cashier’s check at closing.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), fuel, vehicle maintenance, warehouse fee, administrative expenses, payroll, vehicle lease payments, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). Estimated $779 per week in expenses/overhead or $40,508 per year.
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 worker’s 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?
Qualified buyers will have the choice to assume a vehicle lease through Bank of America/Regions Bank or provide their own vehicle. Common delivery vehicles used for this type of business are step vans, box trucks or trailers. A vehicle with an optional assumable lease through Bank of America/Regions Bank is included with the purchase and expenses have been deducted from the cash flow to reflect. When assuming a vehicle loan or lease a credit check may be required.
What is the Gross vs the Net income?
The estimated gross income for the route is $103,896 per year, minus your above mentioned estimated expenses of $40,508 gives you an estimated $63,388 in net income or cash flow yearly (if buyer is financing). For cash purchasers the net income or cash flow yearly is estimated at $75,348.
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 $85,170 based on a weekly sales average of $10,941; this places the business at a selling ratio of approximately 7.8:1. 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.
Who is responsible for damaged or out of date product?
Flowers gives credit for stale and damaged product based on a percentage of the weekly sales.
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.
How many accounts does the route have and where is the warehouse located?
Currently there are an estimated 20 accounts that include a variety of grocery stores and restaurants. The location of the accounts and the warehouse will be disclosed upon execution of a Non-Disclosure Agreement.
How many days a week, and what hours do distributors work?
Flowers does not require a set work week. Customers service requirements for the distributor will vary from account to account. Flowers’ 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. In most cases, there is a qualified “go to” person who is familiar with the company’s routes through networking with other distributors. Another option is to hire or train someone for additional time needed off.
What is required in order to qualify for purchase?
Minimum requirements: to attend an interview for approval from the company, a background check, DOT physical, acceptable business plan and form a corporation (must be an INC.), 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?
Flower’s produces many well-known name brand quality products, and has been GROWING with its aggressive marketing efforts! Industry is recession proof, and located in a solid, stable, productive area. Bread routes are currently the highest demanded distributorships. Company financing available for qualified buyers with an estimated $15,627 down! Priced to sell at $85,170! Contact Us About This Route Here!
How can I learn more about these type of routes?
In order to provide New Buyers with as much information as possible we have put together a quick overview of the industry. Learn More About Flowers Bread Routes Here!