What are the day-to-day operations of this route?
To summarize, you will start your day by picking up your bread order from the warehouse and then proceed to deliver product to existing accounts that include cafes, restaurants and schools, usually starting in the morning hours.
What are the current average sales for this route?
Currently this route averages $291,616 per year in sales or $5,608 per week. 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 20% of its gross weekly sales of $5,608 per week ($1,121).
How much can I make?
$1,121 per week is the route’s gross weekly commission. This number can be increased, by opening new accounts within your designated territory. Route values can also be increased by new product lines being added, and simple inflation.
Can I finance the route?
There is no seller financing. If financing is needed, you can review Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, vehicle repairs, admin fees and insurance. The current owner estimates $166 per week or $8,632 per year in operating expenses. This does not include a route payment if you decide to finance.
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?
Included in the purchase is a 2007 Chevy Express 2500 16′ Box Truck (235k miles). Estimated value is $5,000. Common delivery vehicles used for this type of business are box trucks or trailers. When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $58,292 per year, minus your yearly expenses of $8,632 as mentioned above gives you a net of $49,660 per year.
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 $40,000 based on a weekly sales average of $5,608; you come up with a selling ratio of 7:1.
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?
Klosterman Baking Company gives 100% credit for stale and for damaged product.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Klosterman Baking Company. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner is retiring.
How many accounts does the route have and where is the warehouse located?
Currently there is a total of 46 total accounts that include: restaurants, schools, nursing homes and hospitals. Location of accounts and warehouse will be disclosed upon execution of an NDA.
How long has the seller owned the business?
The current owner has owned this route and territory for 30 years.
How many days a week, and what hours do distributors work?
The current distributor works 5 days a week with Wednesday and Sunday off (30 hours per week).
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?
Klosterman Baking Company is family owned-and-operated business! Owner will train. Drop and Go deliveries! Priced to sell at $50,000! Contact Us About This Route Here!
How can I learn more about these types 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!