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 in the morning hours and then proceed to deliver product to existing accounts that include: hospitals, nursing homes, restaurants, etc. There are NO grocery stores to deliver to. Your responsibilities will include the following: Evaluate and creating orders of product needed for your customers, and delivering the product to the business. There are no shelves to stock. You simply drop and go to each account.
What are the current average sales for this route?
Currently this route averages $7,692 per week in sales. 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 23% of its gross weekly sales of $7,692 ($1,769 per week).
How much can I make?
$1,769 per week is the routes weekly average, or $92,000 per year! There is plenty of room for growth! Route value can be increased by adding new accounts, new accounts opening, new product lines, 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 more money, you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: fuel, stale or damaged product (almost none), insurance, helper’s salary (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $440 per week or $22,883 per year in expenses/overhead.
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 2006 Isuzu 16′ box truck (290k miles). Estimated value is $12,000. 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 $92,000 per year, minus your yearly expenses of $22,883 mentioned above gives you the net of $69,117 per year!
How does the selling price of the route get determined?
St. Armand’s Bread routes are determined by a 2-3 multiple based on net/cash flow.
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.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent St. Armand’s Bread. 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.
Why is the distributor selling?
Owner is looking to pursue another business opportunity.
Where is the warehouse located?
Bread is picked up in central Fort Myers.
How long has the business been established?
The seller has owned the business for 2 years.
Who sets up the accounts?
An account manager is in charge of setting up new accounts for the company. Most corporate hotels and restaurants require that the company be a “preferred vendor.” This means your company has credibility and the required standards to meet their needs.
How many accounts does the route have?
Currently there are 53 accounts that include restaurants, nursing homes, hospitals, and more! Locations will be disclosed upon execution of an NDA.
How many days a week, and what hours do distributors work?
Distributor works 4 days a week, taking Wednesdays, Fridays and Sundays off. Hours on average are 4:00 am to 2 pm. Current owner also employs a part time helper for office work.
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?
St. Armand’s Bread delivers a quality product and is GROWING! Large route with plenty of growth potential! Priced to sell at $115,000! 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!