What are the current average sales and gross income for this route?
Currently this route averages $8500 in weekly sales, and grosses $75,000 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 17% (between 14-20%) of its gross weekly sales of $8500 ($1445 per week).
How much can I make?
$1445 per week is the routes 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 establishing new accounts, the addition of new product lines, and simple inflation.
Can I finance the route?
Yes, the company will consider financing roughly $45,000 for 10 years. At an approximate interest rate of 6.9% with good credit. Additional qualifications require no bankruptcies or felonies. Down payment for the remaining $45,000 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), gas, insurance for your vehicle and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owners estimate $400 per week in expenses/overhead or $21,000 per year that has already been subtracted from the cash flow (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 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?
You are required to have your own delivery vehicle. Common delivery vehicles used for this type of business are box trucks 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 $75,000 per year, minus your above mentioned expenses of $21,000 gives you an estimated $54,000 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 $90,000 based on a weekly sales average of $8500; you come up with a selling ratio of 10:1
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?
All sales are one way, there are NO returns… HUGE!
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Formisano Bakery. The contract is to protect both the company and its distributors.
Why is the company selling?
Owners of the bakery have decided to change their business model and offer equity routes.
Where is the warehouse located?
Located in Saugerties, New York.
How many accounts does the route have?
Currently there are 50-60 accounts. Owners are looking for a motivated buyer to grow the route more.
>How long has the bakery been in business?
For over 20 years! Formisano Bakery was established in 1991.
How many days a week, and what hours do distributors work?
Distributors work 7 days a week, from approximately 8pm – 6am. As an independent operator you may hire employees for time or days needed off. Additionally the business can be used as supplemental income and duties split via a partnership.
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?
Formisano Bakery has grown large enough to supply major site contracts such as schools and commercial plants, yet remains small enough that personalized service can still be provided to any size customer including convenience stores, gas stations, and general stores. Combine this with a stable, solid income, and you have a recession proof business located in a productive area. Formisano Bakery is in search of motivated buyers who are willing to grow and increase an already established area. Experience is not required, company will train. Financing available. Hurry this won’t last long! Ground Floor Opportunity for only $90,000! Contact Us About This Route Here!</
How can I learn more about these type 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 Independent Bread Routes Here!
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