What are the day-to-day operations of this route?
To summarize, you will deliver product to existing accounts that include grocery stores 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 you will proceed to the warehouse to pick up additional product for deliveries the following day.
What are the current average sales for this route?
Currently this route averages $13,407 per week or $697,164 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. This route currently receives an average of 16.5% of its net weekly sales of $13,407 ($2,212 per week).
How much can I make?
$2,212 per week is the routes weekly average, or a gross of $115,032 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?
Third-party related financing may be available assuming buyer meets the lending criteria. As of December 2021, term lengths for 3 / 5 / 7/ 10 years are available. Interest rates are set by the lender and conducive with the market. All routes require a down payment at minimum of 10-15%. This required amount would need to be paid prior to closing. This information, and the terms of the route loan program, is subject to change.
What are my expenses and overhead?
Expenses include but are not limited to: route payment (if you finance), fuel, stale or damaged product, vehicle repairs, computer, 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 $230 per week or $11,960 per year in expenses/overhead (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?
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 2018 Ford Stepvan (108,000 miles) that is available to purchase as a separate transaction. Estimated value is $60,000. Common delivery vehicles used for this type of business are box trucks or trailers. When considering a truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $115,032 per year, minus your $11,960 estimated yearly operating expenses as mentioned above gives you the net of $103,072 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 $225,000 based on a weekly sales average of $13,407; you come up with a selling ratio of approximately 16.8:1!
Do I have to pay for inventory or purchase product up front?
No, you do not have any upfront or out of pocket expenses when purchasing your inventory (inventory is carried from week to week). However, you are responsible for any inventory that is not sold on a weekly basis. Any inventory carried over to the following week will be credited to the following weeks sales/commission.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Snyder’s-Lance. 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?
The route consists of 16 accounts that include popular grocery stores and markets. Location of accounts and warehouse will be disclosed upon execution of an NDA.
How long has the seller owned the route?
Current owner has owned a route through Snyder’s-Lance for 11 years.
Do I get paid full commission when something goes on sale?
Yes. Distributors are paid full commission on promotional sales.
How many days a week, and what hours do distributors work?
The current distributor works from 5 days a week taking Saturday and Sunday off. Early morning hours are required.
What about vacation time or personal days?
As a 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?
Snyder’s-Lance merged making them the second largest salty snack producer in the country! The company continues to be aggressive promoting growth and adding new product lines. High income producing routes don’t last long! Priced at $225,000. Third-party related financing may be available with $72,000 down! 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 Snyder’s-Lance Routes Here!