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 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 $9,868 in weekly sales, and grosses $92,364 per year in commission. Income documentation will be provided to all serious buyers. Gross sales number does not include income received from cash stops.
How do I get paid?
As an independent distributor you are paid by commission. This route currently receives an average of 18% commission of its gross weekly sales of $9,868 ($1,776 per week).
How much can I make?
$1,776 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?
Yes, the company will finance roughly $106,000 for 10 years. At an approximate interest rate of 9.5% with good credit and 10.5% with bad credit. Additional qualifications require no bankruptcies or felonies. Down payment for the remaining balance requires a certified cashier’s check. 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: fuel, vehicle maintenance, handheld maintenance, handheld computer, insurance, and a route payment if you finance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $114 per week or $5,902 per year in expenses/overhead (route payment if financing not included).
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 2014 18′ Chevy 3500 (60,000 miles) that is included in the purchase. Estimated value is $6,000. Common delivery vehicles used for this type of business are box trucks or 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 $92,364 per year, minus your above mentioned expenses of $5,902 gives you $86,462 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 $165,000 based on a weekly sales average of $9,868; you come up with a selling ratio of approximately 16.7:1.
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?
Bimbo Bakery gives full credit for stale and damaged product. HUGE!
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Bimbo Bakery. 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?
Owner is changing careers.
How many accounts does the route have and where is the warehouse located?
Currently there are 11 accounts that include grocery stores, markets, delis, and cash accounts. The location of the accounts and the warehouse will be disclosed upon execution of an NDA.
Do I get paid full commission when something goes on sale?
When the company discounts an item for store promotions, you are paid full commission on the discounted selling price.
How long has the seller owned the business?
The current owner has owned this route and territory for 4 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?
Arnold and Freihofer’s Bread routes deliver many well-known name brand quality products, and has been GROWING with its aggressive marketing efforts! Bimbo Bakery routes are currently the highest demanded distributorships… Don’t hesitate on this one! Financing available with an estimated $59,000 down! Priced to sell at $165,000! 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 Arnold & Freihofer Bread Routes Here! For additional Consulting Services with one of our route specialists Request A Consultation Here.