What are the day to day operations of this route?
To summarize, you will deliver product to existing accounts that include grocery stores and cash accounts usually starting in the morning hours. Your responsibilities will include the following: Evaluate 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 for this route?
Currently this route averages $10,275 per week or $534,300 per year in sales. 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 $10,275; $2,055 per week.
How much can I make?
$2,055 per week is the routes gross weekly average or $106,860 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?
Yes, company related financing is available for an estimated $127,000, assuming a credit score of 650 or higher for 10 years at an estimated 7%. The remaining balance you will have to put down in the form of a certified cashier’s check. Note: Minimum credit score of 500 required for financing. Your credit score will determine how much you need down. If more financing is needed you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: (route payment if you finance), fuel, vehicle maintenance, handheld computer, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance through the company). The current owner estimates $104 per week or $5,408 per year in operating expenses (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 2011 Ford 16′ Box Truck (186,000 miles) that is available as a separate purchase. Estimated value is $12,500. 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 $106,860 per year, minus your yearly expenses of $5,408 as mentioned above gives you a net of $101,452 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 $152,000 based on a weekly sales average of $10,275; you come up with a selling ratio of 14.8:1.
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.
Who is responsible for damaged or out of date product?
Pepperidge Farm offers an allowance for stale and damaged product. HUGE!
Do I have to sign a contract?
Yes, as an independent distributor you sign a contract to represent Pepperidge Farm. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner is retiring.
How many accounts does the route have and where is the warehouse located?
Currently there are 10 accounts. The location of the accounts and warehouse will be disclosed upon execution of a Non Disclosure Agreement.
Do I get paid full commission when something goes on sale?
Yes, this is one of the rare companies that will pay you full commission on the sale price of an item regardless of the discount it is being promoted at. In other words if an item goes “Buy One, Get One Free”, you are NOT working for half commission.
How long has the seller owned the business?
The current owner has owned this route and territory for 1 1/2 years. The route has been established for years prior.
How many days a week, and what hours do distributors work?
The current distributor works as needed to service customers. Distributor currently services accounts 5 days a week, taking Wednesdays and Sundays off. New buyers may be required to submit a business plan outlining service levels.
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.
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?
Pepperidge Farm is an aggressive company and GROWING year after year! This route has well established accounts and there is plenty of room for growth! Priced to sell at $152,000! Financing with an estimated $25,000 down! Early hours allow great flexibility and freedom of personal time. 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 Pepperidge Farm Routes Here!