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 $5,875 in weekly sales or $305,500 per year. Distributor earns a gross of $55,016 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 $5,875 ($1,058 per week).
How much can I make?
$1,058 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, the company will finance roughly $74,000 for 10 years. 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: route payment (if you finance), fuel, vehicle repairs, insurance for your vehicle, and liability insurance for your business, and company administrative fees. (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 in expenses/overhead or $8,372 per year (route payment if financing not included).
Who is responsible for damaged or out of date product?
Flowers Foods gives full credit for stale and damaged product.
What type of vehicle do I need?
The current owner services this route using a 2001 Workhorse Step Van (200k miles) that is included with the purchase and has an estimated value of $6,000. Common delivery vehicles used for this type of business are box trucks or trailers.
What is the Gross vs the Net income?
The gross income for the route is $55,016 per year, minus your above mentioned expenses of $8,372 gives you an estimated $46,644 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 $112,000 based on a weekly sales average of $5,875; you come up with a selling ratio of 19:1
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.
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 selling due to health issues.
How many accounts does the route have and where is the warehouse located?
Currently there are 19 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 2.5 years.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week, taking Saturday and Sunday off, early morning hours are required. On average distributor works from 1.00am until 6.00am.
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?
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?
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 $112,000 and financing available with an estimated $38,000 down! Contact Us About This Route Here!
How can I learn more about these type of routes?
For additional consulting services with one of our route specialists Contact Us Here!