What are the day-to-day operations of these routes?
To summarize, distributors will deliver product to existing accounts that includes supermarkets 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, they will proceed to the warehouse to pick up additional product for deliveries the following day.
What are the current average sales for these routes?
Currently these routes average $28,540 per week in sales or $1,484,054 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. These routes currently receive an average of 25% of their gross weekly sales of $28,540 ($7,135 per week).
How much can I make?
$7,135 per week is the route weekly average, or a gross of $371,014 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.
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. However, if you need money, you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: sub-contractors commissions, vehicle insurance, liability insurance, cell phone, office expense, accounting. The current owner estimates $5,422 per week or $281,971 per year in expenses/overhead. (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase). The sub-contractors cover their own fuel, vehicle maintenance, warehouse fees and insurance cost.
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 16′ trailer. Sub-contractors that transfer to the new owner use their own vehicles. 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 these routes is $371,014 per year, minus your estimated yearly expenses of $281,971 as mentioned above gives you the owner’s net profit of $89,043 per year.
How does the selling price of the routes get determined?
Route sales are determined by a ratio based on a weekly sales average. The selling price of this route is $432,000 based on a weekly sales average of $28,540; you come up with a selling ratio of approximately 15:1.
Do I have to pay for inventory or purchase product up front?
There is an initial deposit required, the terms can be discussed with the company before purchase.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Mission Foods. In turn the company agrees to promote and assist you in growing your business. The contract is to protect both the company and its distributors.
What are the qualification requirements?
To qualify for a route purchase, Mission’s will do a simple background check.
Why is the distributor selling?
The seller owns multiple routes and is downsizing.
How many accounts do these routes have and where is the warehouse located?
These routes have a total of 41 accounts that include popular grocery stores. The location of the accounts and the warehouse will be disclosed upon execution of an NDA.
How long has the seller owned the route?
Current owner has owned a route through Mission Foods for 10 years.
How many days a week, and what hours do distributors work?
The current contractors work 5 days per week taking Sunday and Wednesday off. Early morning hours are required.
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?
Mission Foods continues to be aggressive promoting growth and adding new product lines. Plenty of growth opportunity with high volume stores, and a high commission payout! Great opportunity to purchase a master distributorship with semi-passive income. Priced to sell at $432,000! 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 Mission Tortilla Routes Here! For additional Consulting Services with one of our route specialists Request A Consultation Here.