Wise Chips & Kellogg’s Route, Myrtle Beach, South Carolina

REVERSE AUCTION!!! Price just reduced! Wise Chips, Kellogg’s and Keebler Snack Route (primarily Wise Chips) for sale and priced at $64,500… PRICE will continue to be REDUCED every 3 days by $10,000 until a BID is received or sellers RESERVED pricing is met!

Frequently Asked Questions:

Details and Terms of Auction:

By submitting a bid at the current price, Buyer agrees to sign an NDA, supply financial documentation to show the ability to purchase, execute a purchase agreement between buyer and seller, make a good faith deposit into escrow for $4900.00, and must be able to close on or before the end of December 2014. Once a purchase agreement and good faith deposit are made this his will secure the Buyer’s position (taking the route off the market) and the seller will no longer be able accept other offers (unless the current buyer retracts their offer). Once under contract Buyer’s good faith deposit into escrow (earnest money) is 100% refundable based on the following: 1) If not approved to purchase by Wise and/or Kellogg’s; 2) If for any reason buyer determines business is not a good fit during a 14 calendar day due diligence period to inspect business financial documentation, etc. In other words Buyer can request a 100% refund for any reason during the 14 days due diligence/inspection period. Submit all inquiries and bids to: info@routesforsale.net

Details of the Business:

Currently generating $584,282 in yearly sales and nets $46,692 as an owner operator of the business. Includes 2 employees willing to transfer and 2 vehicles with the purchase. Distributorships and territories are purchased through seller and contracted through the companies. Distributor currently distributes well-known brand of Wise Chips, Kellogg’s Cookies and Crackers, and more… Huge growth opportunity with this route. Territory for this route is located in Myrtle Beach, Horry and Georgetown County, South Carolina region. Can be operated by an owner operator, or absentee owner! Please note that due to operating as a sole proprietorship, sellers will be unable to provide tax returns, however buyer will be able to verify the accuracy of income through generated reports from the companies they have contracted with.

What are the day to day operations of this route?

To summarize, you will deliver product to existing accounts that include grocery stores and cash accounts 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. After servicing your accounts for the day you will proceed to the warehouse to pick up additional product for deliveries the following day.

What are the current average sales for this route?

Currently this route averages $11,236 per week in sales or $584,282 per year. Documentation will be provided to all serious buyers.

How do I get paid?

As an independent distributor you are paid by commission. Commission varies depending on the items sold. This route currently receives an average of 18.5% of its net weekly sales of $11,236 ($2117 per week).

How much can I make?

$2117 per week is the routes weekly average, or a gross of $110,092 per year! 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 stores opening, new product lines being added, and simple inflation. Distributor acknowledges plenty of growth opportunity for new accounts in this territory.

Can I finance the route?

There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons. 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, payroll, warehouse, computer, vehicle maintenance, insurance for your vehicle, and liability insurance for your business. The current owner estimates $1219 per week or $63,400 per year in expenses/overhead.

What type of vehicle do I need?

There are 4 vehicles included with the purchase that include: 1 Cargo Vans, 1 Box Truck, and 1 Cargo Trailer. 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 $110,092 per year, minus your estimated yearly expenses of $63,400 as mentioned above gives you the net of $46,692 per year as an owner operator of the business working roughly 25 hours per week. Additional employee available if needed to run absentee ownership. With additional employee cash flow becomes $33,692!

How does the selling price of the route get determined?

Most routes for sale determine their value by a ratio based on a weekly sales average. Other evaluations include a multiple of the business cash flow. The selling price of this route is $64,500 based on a weekly sales average of $11,236; you come up with a selling ratio of less than 6:1.

Do I have to pay for inventory or purchase product up front?

New route owners must place and initial deposit of $15,000 with the company for inventory purchases.

Do I have to sign a contract?

Yes, as an independent distributor you sign a service agreement to represent the companies. In turn the companies agrees to promote and assist you in growing your business. The contract is to protect both the companies and its distributors.

Why is the distributor selling?

Owners are retiring.

How many accounts does the route have and where is the warehouse located?

The route consists of an estimated 100 accounts that include: Wal-Mart, Food Lion, IGA, Lowes, Kroger, Piggly Wiggly, Bi-Lo, and independent accounts. New accounts opeing next year that will add additional sales, growth, and equity to the business. Owners company projections are $700,000 for 2015. Location of accounts and warehouse will be disclosed upon execution of an NDA.

How long has the seller owned the business?

Current owner has owned a route through companies for 10 year.

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 many days a week, and what hours do distributors work?

This current employees work 5-6 days per week taking Sunday’s off. Service hours for most accounts range from 6am-2pm.

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?

Typically, most company routes or distributorships will require you to attend an interview for approval from the company, background check, and form an 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?

Companies continue to be aggressive promoting growth and adding new product lines. Plenty of growth opportunity with large territory, high volume grocery stores! Owners are retiring. Currently priced at AUCTION to sell at $64,500! Submit all inquiries and bids to: info@routesforsale.net

Disclaimer: Routes For Sale is a Broker that brings buyers and sellers together. Routes For Sale does not represent, or is not affiliated with the company the distributorship is being offered. All agreements are made between the buyer and seller and not Routes For Sale. It is the prospective Buyer’s duty and obligation to verify the accuracy of the Seller’s representations and if necessary retain attorneys, accountants, business appraisers, or other professionals. The representation of income is based on a current 52 week sales average generated by the efforts of the current owner. As with any business you can make more or less.