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. 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 $11,301 per week. 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 20% of its gross yearly sales of $587,652 or ($2,260 per week).
How much can I make?
$2,260 per week is the routes weekly average or $117,520 gross 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, financing is available for an estimated $335,172 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. Pepperidge Farm also requires that your debt to income ratio be in the 25/75 range. If more financing is needed you can review additional Financing Options Here.
Why are Pepperidge Farm Cookie Routes priced higher than all the others?
You are purchasing not only a solid business, but a lifestyle: 1) You work about half the hours compared to a typical bread route. 2) You are purchasing the rights to the trademark, as well as the rights to a distributorship and a “protected territory.” 3) Product has much longer codes and requires less maintenance. 4) You are paid full commission regardless of the sale price. 5) Company recognizes the high value of its business model and is willing to finance 70-80% of the cost. Make no mistake; there is NOT a more prestige company in route sales than Pepperidge Farm.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if applicable), fuel, insurance for your vehicle, and liability insurance for your business (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance through the company). Seller estimates $305 per week or $15,860 per year in operating expenses. Note: Pepperidge Farm supplies all display material, and computer paper at NO cost to you.
Who is responsible for damaged or out of date product
Pepperidge Farm offers an allowance for stale and damaged product. HUGE!
What type of vehicle do I need?
There is no vehicle included in the purchase. Common delivery vehicles used for this type of business are box trucks or trailers. When considering a vehicle lease or purchase, Routes For Sale recommends Bush Trucks.
What is the Gross vs the Net income?
The gross income for the route is $117,520 per year, minus your yearly expenses of $15,860 as mentioned above gives you a $101,660 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 $429,172 based on a weekly sales average of $11,301; you come up with a selling ratio of 38:1.
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.
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.
Why is the distributor selling?
Seller is pursuing other business opportunities.
How many accounts does the route have and where is the warehouse located??
Currently there are 29 grocery store accounts. Locations of accounts and warehouse will be disclosed upon execution of an NDA.
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 the route and territory for 2 years.
How many days a week, and what hours do distributors work?
The current distributor works as needed to service customers. Service hours for most accounts range from 3am-9am. 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 is motivated to improving sales year after year! Priced to sell at $429,172! Hurry these routes are in demand, rarely available, and are the most coveted routes in the industry… You will not find a distributorship with a more SOLID contract! 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! For additional Consulting Services with one of our route specialists Request A Consultation Here.