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 sell and deliver product to existing accounts that include popular grocery stores, variety stores, restaurants, and gas stations, usually starting in the morning hours. Your responsibilities will include the following: provide customer service to each account, increase sales within each account, evaluate and create a product order for delivery, receive the order through the back door, and then merchandise the order to the shelf. Distributors are also encouraged to establish new customer accounts.
What are the current average sales and gross income for these routes?
Currently these routes average $39,158 in weekly sales, and profit $372,521 per year in gross income. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor, distributors are compensated by how much product they purchase from the bakery versus what they sell. These routes currently average $39,158 in gross weekly sales and profit an average of 18.3% ($372,521 yearly or $7,164 per week).
How much can I make?
$7,164 per week is the routes weekly gross income 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 routes?
Yes, company related financing is available for qualified buyers at an estimated amount of $300,000 for 10 years or purchasers may seek individual financing. Additional qualifications require a background check and a 10% cash reserve of the selling price. Down payment for the remaining balance requires a certified cashier’s check at closing. 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 leases, vehicle maintenance, warehouse fee, driver’s salaries, administration fees 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 $4,147 per week in expenses/overhead or $215,644 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?
Current insurance requirements are $2 million of general liability and $2 million for auto liability, or $1 million of general liability and $1 million of auto liability with a $1 million umbrella policy. 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 vehicles do I need?
Included in the purchase are the following trucks: 2018 Isuzu, 2018 Ford, 2017 Chevrolet. These vehicles have assumable leases. Expenses have been deducted from the cash flow to reflect. When assuming a vehicle loan or lease a credit check may be required. 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 routes is $372,521 per year, minus your above-mentioned expenses of $215,644 gives you an estimated $156,877 in net income or cash flow yearly.
How does the selling price of the route get determined?
Route valuations are determined by using a ratio based on the weekly sales average of the business. The selling price of these routes is $410,000 based on a weekly sales average of $39,158; this places the business at a selling ratio of approximately 10.4:1. Sellers may use different valuation methods based on fair market comparable sales, but typically the weekly sales average is used to determine the selling price.
Do I have to pay for inventory or purchase product up front?
The distributor is compensated based on product they purchase and sell from the bakery. Note: The distributor does not incur out of pocket expenses when purchasing the 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?
Flowers gives credit for stale and damaged product based on a percentage of the weekly sales.
Do I have to sign a contract?
Yes, as an independent distributor you sign a distributor agreement that lays out the relationship between the parties, obligations of each party, and describes the distribution rights that the distributor owns.
Why is the distributor selling?
Owner passed away and the routes were left to a relative.
How many accounts does the route have and where is the warehouse located?
Currently there are a total of 32 accounts that include grocery stores, department stores, convenience stores, supermarkets, and wholesale suppliers. The location of the accounts and the warehouse will be disclosed upon execution of a Non-Disclosure Agreement.
How long has the seller owned the business?
The current owner has owned this route and territory for 3 years.
How many days a week, and what hours do distributors work?
Flowers does not require a set work week. Customers service requirements for the distributor will vary from account to account. Flowers’ interest is that customers are serviced according to customer service requirements.
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, you can network and hire distributors with previous route experience at RouteReliefDrivers.com. Route Relief Drivers is a nationwide network that allows independent route distributors and vacation relief drivers to connect with each other. Each party negotiates its own terms and compensation.
What is required in order to qualify for purchase?
Minimum requirements: to attend an interview for approval from the company, a background check, DOT physical, acceptable business plan and form a corporation (must be an INC.), and completion of training if approved. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Flower’s produces many well-known name brand quality products and has been GROWING with its aggressive marketing efforts! Route is recession proof, and located in a solid, stable, productive area. Bread routes are currently the highest demanded distributorships. Turnkey, start making money the week you take over! Backed by a publicly traded company on the NYSE! Company financing available with an estimated $110,000 down! Priced to sell at $410,000! Contact Us About This Route Here!
How can I learn more about these types 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 Flowers Bread Routes Here!