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 in the morning hours and then proceed to deliver product to existing accounts that include: hospitals, nursing homes, restaurants, etc. There are NO grocery stores to deliver to. Your responsibilities will include the following: Evaluate and creating orders of product needed for your customers, and delivering the product to the business. There are no shelves to stock. You simply drop and go to each account.
What are the current average sales for this route?
Currently this route averages $5,882 per week 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 24% of its gross yearly sales of $305,901, or weekly $5,882 ($1411 per week).
How much can I make?
$1411 per week is the routes weekly average, or $73,416 per year! There is plenty of room for growth! Route value can be increased by adding new accounts, new accounts opening, new product lines, and simple inflation.
Can I finance the route?
Yes, seller will finance $50,000. Unfortunately banks will NOT write business loans against route based businesses for several reasons. However if you need more 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 (none), vehicle storage and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $161 per week or $8,372 per year in expenses/overhead.
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 runs the route with a 2004 Mitsubishi box truck (160k miles) that is available for purchase if needed. Estimated value of vehicles is $10,000. Common delivery vehicles used for this type of business are box trucks or 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 $73,416 per year, minus your $8,372 yearly expenses as mentioned above gives you the net of $65,044 per year!
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 to represent St. Armand’s Bread. 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.
Why is the distributor selling?
Seller owns multiple routes and is downsizing.
Where is the warehouse located?
Bread is delivered by bakery to your truck in Deland.
How long has the business been established?
The seller has owned the business for 1 year. Route has been established years prior.
Who sets up the accounts?
An account manager is in charge of setting up new accounts for the company. Most corporate hotels and restaurants require that the company be a “preferred vendor.” This means your company has credibility and the required standards to meet their needs.
How many accounts does the route have?
Currently there are 50 accounts that include: restaurants, nursing homes, hospitals, assisted living, various events, and the fair grounds.
Do I get paid full commission when something goes on sale?
Because this route is unique and only wholesales to hotels, there are no promotions. You get paid full commission with every order.
How many days a week, and what hours do distributors work?
Distributors work 4 days a week, taking Wednesday’s, Saturday’s, and Sunday’s off. Hours on average are 4:00 am to 12:00 pm.
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?
St. Armand’s Bread delivers a quality product and is GROWING! Seller has communicated that there is more growth potential through additional territory and various other businesses in the area. Owner is currently establishing more new accounts on a daily basis! The sky is the limit with this business! Financing with $60k down! Priced to sell at $109,900! 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 Independent Bread Routes Here! For additional Consulting Services with one of our route specialists Request A Consultation Here.