What are the day to day operations of this route?
To summarize, you will deliver product to existing accounts that includes supermarkets 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. After servicing your accounts for the day you will proceed to the warehouse to pick up additional product for deliveries the following day.
What are the current average sales for this route?
Currently this route averages $6,349 per week in sales or $330,159 per year. 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 20% of its gross weekly sales of $6,349 ($1,270 per week).
How much can I make?
$1,270 per week is the routes weekly average, or a gross of $66,032 per year! 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 stores opening, new product lines being added, and simple inflation.
Can I finance the route?
The seller will finance up to $70,000. Terms to be discussed. Need Money? You can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, stale or damaged product, warehouse, vehicle maintenance, helper, and insurance. The current owner estimates $316 per week or $16,455 per year in expenses/overhead (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 the route using a 2005 GMC 3500 16′ truck (242,000 miles) that is included in the purchase. Estimated value is $4,000. Common delivery vehicles used for this type of business are step vans, box trucks and cargo 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 $66,032 per year, minus your estimated yearly expenses of $16,455 as mentioned above gives you the net of $49,577 per year!
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 $110,000 based on a weekly sales average of $6,349; you come up with a selling ratio of 17.3:1.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent La Favorita. 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.
What are the qualification requirements?
To qualify for a route purchase, La Favorita will do a simple back ground check.
Why is the distributor selling?
Owner is retiring.
How many accounts does the route have and where is the warehouse located?
This route has 10 accounts that include popular grocery stores. The location of the accounts and the warehouse will be disclosed upon execution of an NDA.
How long has the seller owned the route?
Current owner has owned a route through La Favorita for 8 years.
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 many days a week, and what hours do distributors work?
The current owner works 4 days per week, 5am to 11am, taking Wednesday, Saturday, and Sunday off. 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. 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?
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?
La Favorita distributes authentic all-natural Mexican-style products. Plenty of growth opportunity with high volume stores, and a high commission payout! Priced to sell at $110,000! Contact Us About This Route Here!