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?
Currently this route averages $495,040 a year in sales and grosses $105,820 per year in commission. Income documentation will be provided to all serious buyers.
How do I get paid?
This route currently has net weekly sales (gross sales, minus returns) of $9,520, for an average of $2,285 per week.
How much can I make?
$2,285 per week is the routes weekly 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: fuel, vehicle repairs, and insurance. 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 2016 GMC 16′ Cutaway (175,000 miles) that is available as a separate purchase. Estimated value is $11,500. Common delivery vehicles used for this type of business are box trucks or enclosed 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 $118,820 per year, minus your above mentioned expenses of $13,000 gives you $105,820 in net income or cash flow.
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 $275,000 based on a weekly sales average of $9,520; you come up with a selling ratio of 29:1.
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.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service 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 is pursuing other business interests.
How many accounts does the route have and where is the warehouse located?
Currently there are 35 accounts. The location of the accounts and the warehouse will be disclosed upon execution of an NDA.
How long has the seller owned the business?
The route and territory have been established for 8 1/2 years.
How many days a week, and what hours do distributors work?
Distributor works 5 days a week, taking Wednesday 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. It is our recommendation that you hire or train someone for additional time needed off. Additionally there are previous distributors for hire that are familiar with route distributorship type businesses.
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?
Martin’s Famous Potato Roll products forged a new category in the supermarket and established the gold standard for potato roll taste and quality. Various competitors in recent years have attempted to produce a “potato roll” that matches the taste, quality, and freshness of Martin’s, but if market share is a fair indicator, none have measured up. Martin’s was the number one brand of potato rolls on the day they created the category, and they continue to dominate in the markets where they have established full distribution. In fact, some jokingly say that when this bread reaches its expiration date, it’s still fresher than the competitor’s bread the day it is delivered. Plenty of room for growth! Priced to sell at $275,000. 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 Martin’s Bread Routes Here! For additional Consulting Services with one of our route specialists Request A Consultation Here.