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: 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 $7,845 in weekly sales, and profits $77,272 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 $7,845 in gross weekly sales and profits an average of 18.9% ($77,272 yearly or $1,486 per week).
How much can I make?
$1,486 per week is the route’s 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?
Yes, company related financing is available for an estimated $59,000 for 10 years. 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, handheld maintenance, 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 $250 per week in expenses/overhead or $13,000 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?
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 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?
The current owner services this route using a 2012 Isuzu NPR Box Truck (123,000 miles) that is included with the purchase. Estimated value is $7,500. Common delivery vehicles used for this type of business are box trucks or trailers. When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $77,272 per year, minus your above mentioned expenses of $13,000 gives you an estimated $64,272 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 $89,000 based on a weekly sales average of $7,845; this places the business at a selling ratio of approximately 11.3:1. 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.
Why is the distributor selling?
Owner is selling due to health reasons.
How many accounts does the route have and where is the warehouse located?
Currently there are 30 accounts that include grocery stores, convenience stores and restaurants. The location of the accounts and the warehouse will be disclosed upon execution of a Non-Disclosure Agreement.
How long has the seller owned the business?
The current owner has owned this route and territory for 7 1/2 years.
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, DMV approval, acceptable business plan and form a corporation (must be an INC.). 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! Route is recession proof, and located in a solid, stable, productive area. Bread routes are currently the highest demanded distributorships. Turnkey, start making money the week you take over! Backed by a publicly traded company on the NYSE! Company financing available with an estimated $30,000 down! Priced to sell at $89,000! 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!