What are the day-to-day operations of this route?
To summarize, distributor takes delivery of the order and then delivers to existing accounts that include hospitals, colleges and restaurants.
What are the current average sales and gross income for this route?
Currently this route averages $8,737 in weekly sales, and profits $90,844 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. This route currently averages $8,737 in gross weekly sales and profits an average of 20% ($90,844 yearly or $1,747 per week).
How much can I make?
$1,747 per week is the route’s weekly 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 route?
Yes, seller financing is available for an estimated $70,000. Terms to be discussed. 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 maintenance 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 $285 per week in expenses/overhead or $14,820 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 workers’ 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 seller services the route using a 2014 Mercedes Sprinter (271k miles) that is available as a separate purchase. Estimated value is $15,000. Common delivery vehicles used for this type of business are box trucks, large vans, or trailers. If you are considering purchasing, leasing or financing a vehicle you can review additional information here.
What is the Gross vs the Net income?
The gross income for the route is $90,844 per year, minus your above mentioned expenses of $14,820 gives you an estimated $76,024 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 this route is $135,000 based on a weekly sales average of $8,737; this places the business at a selling ratio of approximately 15.5:1. 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.
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?
The owner is focusing on other businesses.
How many accounts does the route have?
Currently there are 38 accounts including hospitals, colleges and restaurants. The location of the accounts will be disclosed upon execution of a Non-Disclosure Agreement.
How many days a week, and what hours do distributors work?
Current distributor works 4 days per week – Monday, Wednesday, Friday and Saturday (approximately 22 – 28 hours per week). Customers service requirements for the distributor will vary from account to account. Crown Bakeries’ interest is that customers are serviced according to customer service requirements. The current distributor also hires a helper that is willing to stay, providing a semi-passive opportunity.
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, form a corporation, 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?
Crown bakeries produces biscuits, croissants, bagels, buns, and much more! Route is recession proof, and located in a solid, stable, productive area. Bread routes are currently the highest demanded distributorships. “Drop and Go” accounts with no merchandising. Turnkey, start making money the week you take over! Backed by a publicly traded company on the NYSE! Seller financing available with an estimated $65,000 down! Priced to sell at $135,000! Contact Us About This, Route Here!
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