What are the current average sales and gross income for this route?
Currently this route grosses $403,270 in yearly sales, and nets $68,847 per year. Income documentation will be provided and is documented by invoices.
How do I get paid?
As an independent operator you are paid by purchasing product at wholesale cost and selling it to your customer base via direct sales. This route currently receives an average profit margin of 26%.
How much can I make?
This business has unlimited growth potential and can be expanded throughout the region. The yearly sales can be increased by new accounts being established.
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: product cost, gas, vehicle expenses, warehouse storage, and insurance. The above cash flow represents the profit after an estimated $334,423 in operating cost and expenses are subtracted.
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?
The current owner services this route using a Nissan NV 2500 series High Top Van. This vehicle is not included in the sale but is available to purchase as a separate transaction if desired. 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 $403,270 per year, minus your above mentioned operating expenses of $334,423, gives you $68,847 in net income or cash flow.
How does the selling price of the route get determined?
To determine a business’s price, a standard formula is to multiply 2 years of the net plus consideration of business assets.
Do I have to pay for inventory or purchase product up front?
Yes, the business requires you to purchase product at wholesale from manufacturers and master distributors. The purchase includes some inventory.
Who is responsible for damaged or out of date product?
You are responsible for the product you purchase, however, the product that is sold has such long expiration dates that out of date product is negligible.
Why is the owner selling?
The owner is looking to pursue another business opportunity.
Where is the warehouse located?
The current owner leases a warehouse in Medina, Ohio. This warehouse has an assumable lease if the new owner wishes to take it over – this is not required.
How many accounts does the route have?
There are 200 accounts.
How long has the seller owned the business?
The current owner has owned this business for 7 years.
How many days a week, and what hours does the owner work?
Currently the owner services this route 5 days week, working from 8:00am – 5:00pm Monday – Thursday and a half-day on Friday. The hours and days are flexible.
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 do you recommend when purchasing a business?
When purchasing this type of business we recommend forming some type of entity such as an LLC or Corporation to do business under. This not only offer protection for your personal assets, 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?
Be Your Own Boss with flexible hours! Unlimited growth opportunity! The long cherished notion of getting a job that would provide both long term security and benefits is close to disappearing in the American workplace. It is no surprise that more people today want to do “their own thing”. This is an opportunity for exactly that. Hurry this won’t last long! Priced to sell at $165,000! Contact Us About This Route Here!
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