What are the day to day operations of this route?
To summarize, you will start your day by picking up your cake from the warehouse and then proceed to 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 and gross income for this route?
Currently this route averages an estimated $8,816 in weekly sales or $476,248 per year. Distributor earns a gross of $84,122 per year in commission. Income 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 18% of its gross weekly sales of $8,816 ($1,587 per week).
How much can I make?
$1,587 per week is the routes gross 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, company related financing is available for an estimated $117,000 for 10 years. 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.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), fuel, vehicle repairs, equipment/supplies, 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 $235 per week in expenses/overhead or $12,220 per year (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?
There is no vehicle included in the purchase. Common delivery vehicles used for this type of business are step vans, box trucks and cargo trailers. When considering a truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $84,122 per year, minus your above mentioned expenses of $12,220 gives you an estimated $71,902 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 $160,000 based on a weekly sales average of $8,816; you come up with a selling ratio of 18.1:1
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?
Flowers Foods gives full credit for stale and damaged product.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Flowers Foods. 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 retiring.
How many accounts does the route have and where is the warehouse located?
Currently there are 42 accounts. The location of the accounts and the warehouse will be disclosed upon execution of a Non-Disclosure Agreement.
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 under 12 years.
How many days a week, and what hours do distributors work?
Customers service requirements for the distributor will vary from account to account. 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. In most cases, there is a qualified “go to” person who is familiar with the company’s routes through networking with other distributors. Another option is to hire or train someone for additional time needed off.
What is required in order to qualify for purchase?
Minimum requirements: to attend an interview for approval from the company, a background check, DMV approval, acceptable business plan and form a corporation (must be an INC.). If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Tastykake delivers it’s well known brand and quality products nationwide. Plenty of room for growth and expansion! Route is recession proof, and located in a solid, stable, productive area. Priced to sell at $160,000 and financing available with an estimated $43,000 down! Contact Us About This Route Here!