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 deliver product to existing accounts that include grocery stores and cash accounts 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?
You are purchasing the distribution rights. As the buyer you must establish the territories. However, the seller has already begun to establish a route with sales averaging $78,000 in gross sales and nets $15,600. Seller has communicated in the next coming weeks that 14 new accounts will be added. Income documentation will be provided to all serious buyers.
How do I get paid?
The routes currently receive an average of 24% of its net weekly sales (gross sales, minus returns) per week.
How much can I make?
The sky is the limit! These numbers can be increased by establishing new routes, supporting the company’s promotions and up selling within your designated territory. Once established, 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: fuel, repairs, insurance and warehouse storage for the business and product deliveries. Owner estimated $3,104 in yearly expenses to date.
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 owner currently operates the routes with the following vehicles: 1993 Ford Box Truck 16′. Common delivery vehicles used for this type of business are box trucks or enclosed 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 commissions for the route are 18,720 per year, minus your above mentioned expenses of $3,104, gives you $15,600 in net income or cash flow.
Do I have to pay for inventory or purchase product up front?
No, you do not have any out of pocket expenses when purchasing your 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?
Martin’s Bread gives full credit for stale and damaged product. HUGE!
Do I have to sign a contract?
Yes, as a wholesaler you must be approved and sign a contract agreement. In turn the company agrees to promote and assist you in growing your business. The contract is to protect both the company and its wholesaler’s.
Why is the distributor selling?
Owner’s has another business opportunity in the west part of the United States.
What type of accounts are they in?
Martin’s Bread are established in every major chain such as (but not limited to): Food Lions, Piggly Wiggly’s, Sam’s, Walmart’s, Harris Tweeter’s, and Lowes.
How long has the seller owned the business?
The current owner has owned the territories for 3 years and has already established and developed 5 routes in a neighboring area. Owner estimates a minimum of 8 more routes that can be created.
How many days a week, and what hours do distributors work?
On average distributors will work 5 days a week 3am – 10am, taking Wednesday’s and Sunday’s off.
What else should I know?
Typically, most company routes or distributorships will require you to attend an interview for approval from the company, background check, and form an 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.
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 Martin’s Bread Routes Here!
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