What are the day to day operations of this route?
To summarize, you will start your day by picking up your cake from the warehouse and then proceed to deliver product to existing accounts that include grocery stores and cash accounts usually starting in the morning hours. Your responsibilities will include the following: Evaluate 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.
What are the current average sales and gross income for this route?
Currently this route averages an estimated $3,874 in weekly sales or $201,448 per year. Distributor earns a gross of $36,244 per year in commission plus a development allowance of $30,940 per year. Income 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 18% of its gross weekly sales of $3,874 ($697 per week). There is also a development allowance of $595 per week, making a total gross income of $1,292 per week.
How much can I make?
$1,292 per week is the routes gross weekly average! 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 accounts opening, new product lines being added, and simple inflation.
Can I finance the route?
Yes, company related financing is available for an estimated $23,000 for 10 years. Additional qualifications require a background check and a 10% cash reserve of the selling price. Down payment for the remaining balance requires a certified cashier’s check at closing. If more financing is needed you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), fuel, vehicle lease, vehicle repairs, insurance, and company administrative fees. (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $396 per week in expenses/overhead or $20,592 per year (route payment if financing not included).
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 2013 Ford Step Van. This vehicle is included in the purchase and has an assumable lease. Expenses have been deducted from the cash flow to reflect. When assuming a vehicle loan or lease a credit check may be required. 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 $67,184 per year, minus your above mentioned expenses of $20,592 gives you an estimated $46,592 in net income or cash flow.
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 $34,000 based on a weekly sales average of $3,874; you come up with a selling ratio of 8.8:1
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?
Flowers Foods gives full credit for stale and damaged product.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Flowers 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.
Why is the distributor selling?
Owner is relocating.
How many accounts does the route have and where is the warehouse located?
Currently there are 38 accounts that include grocery stores and convenience stores. The location of the accounts and the warehouse will be disclosed upon execution of a Non-Disclosure Agreement.
Do I get paid full commission when something goes on sale?
When the company discounts an item for store promotions, you are paid full commission on the discounted selling price.
How long has the seller owned the business?
The current owner has owned this route and territory for 3 years.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week, taking Saturdays and Sundays 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?
Minimum requirements: to attend an interview for approval from the company, a background check, DOT physical, acceptable business plan and form a corporation (must be an INC.), and completion of training if approved. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Tastykake delivers it’s well known brand and quality products nationwide. owner admits that there are plenty of accounts that he is unable to service given the distance he lives from the territory. Plenty of room for growth and expansion! Route is recession proof, and located in a solid, stable, productive area. Minimal operating expenses. Priced to sell at $34,000 and financing with an estimated $11,000 down! Contact Us About This Route Here!
How can I learn more about these type of routes?
For additional Consulting Services with one of our route specialists Request A Consultation Here.