Buyer Frequently Asked Questions:
Who is Route to Success?
The Route to Success team has over 17 years of route experience, assisting customers through the process of either buying a route for the first time, or assisting a seller with the sale of their route. We offer our expert advice and work to get a fair market price for both the buyer and seller.
What is a route business?
A route is a group of established or assigned stops or accounts, that a specific product is delivered to. These accounts may include supermarkets, delis, grocery stores, diners, restaurants and office buildings. Payments are usually made to the owner of the route for the product that has been delivered, either by C.O.D. or on a weekly basis.
What Type of Routes Do You Sell or Broker?
We sell all types of routes. These include Bread and Cake routes, Snack and Chip routes, Beverage routes, Ice Cream routes, Provision routes, Vending routes, Automotive routes and FedEx routes.
What is a Protected Route?
There are two types, protected stops and protected territory. Protected stops simply means that you do not have a specified territory, the accounts you have when you purchase the route are yours and are registered with the company. This means that nobody else distributing the same product can deliver or sell the same product to any of your accounts. This is in writing with the company and is called a “Distributors Agreement”. Protected territory simply means that the company you have purchased your route from, has specific boundaries for your route. Each route has its own geographic area and nobody from the same distributor can enter that specific area.
What is the difference between an Independent Route and a Protected Route?
Independent routes can pick-up from more than 1 supplier and many times more than 4. This guarantees the best prices and a diversity of product lines. Types of independent routes may include bread, cake, meat, and provisions, dairy, vending and service routes. Independent routes generally offer a higher net for a lower price. Protected routes such as Wise, FedEx, and Pepsi are usually household names and have geographic territorial boundaries.
How Do You Determine the value of a Route?
There are many variables to determine the value of your route. They range from the number of accounts on your route, its geographic location, the condition of the vehicle(s) used on your route, whether or not your route is a brand name or not and if it is a protected territory. We will assist you in determining the fair market value of your Route Business and help you to achieve outstanding results in Marketing and Selling your Route in a timely manner.
Is Financing Available?
There are many ways to Finance a route. You can obtain financing through either a personal loan, second mortgage or a home equity loan. Personal loans, for someone with good credit, are usually limited to $10,000 - $20,000. The Small Business Administration (SBA) and Banks generally do not give business loans on routes. The reason for this is that in the case of a default, they cannot recoup the route clients. In some situations, current route owners may be willing to hold a note with the new owner.
How much knowledge of the route business do I need and is there any type of training required?
Many of our clients purchase routes with no prior route experience. It is our duty as a broker to work with you and to give you as much knowledge about the business that we can to help you to become successful. More importantly, the seller will work with you, for a period of time, as noted in the contract to assist/train you in the route business. This training can range anywhere from two to four weeks and in certain situations even longer. The seller will make sure you are 100% confident in your training.
Is a route a good investment? What are the advantages of owning a route?
The route business can be a very profitable business. You are able to earn a good income and be your own boss. This enables you in most cases to to adjust your service/delivery schedule to suit you needs. You also have the opportunity, since it’s your route and if you want to be successful, to try to add stops to your route to help it grow. Also since it’s a business you are able to write off many business expenses.
Can I increase the size of my route?
The majority of our routes have the ability to add stops or increase sales. If you are interested in increasing your earnings you can always stop in stores, delis, restaurants and introduce your products and tell them about your service. New stops and increased sales will help to increase the profit and size of your route.
Will I need a special license or permit to operate a Route Business?
In most cases there is no need for any special licenses or permits to operate a Route Business. Some routes do have trucks that exceed a certain weight or have air brakes which would require a CDL license.
If I’m interested in a specific route, what do I need to do?
Call Routes to Success and speak to one of our sales representatives to obtain all the preliminary route
information. After that, we will make an appointment for you to meet the route owner and to go out one day on the specific route. This gives you a chance to see at a quick glance if the particular route still holds your interest.
Why Use Route To Success To Purchase Your Route?
Route To Success works closely with the buyer and seller to insure a fair transaction. Since many people are new to the route business, they will benefit from our years of experience and knowledge. We have valuable resources to help market your route for sale or to help you find a route that’s perfect for you. We manage every aspect of your business deal, from posting your route for sale, to screening potential buyers, to negotiations and sale. We process all details to help insure a smooth business transaction from the seller to the buyer. We assist in performing due diligence and making sure all representations are true and accurate.
We are familiar with policies and procedure of the “Brand Name Routes” such as FedEx, Pepperidge Farm, Arnold Bread, Thumanns Provisions as well as many of the independent routes. Let our 17 years of hands on knowledge in the Route Industry work for you. Quite simply our success depends on your success and we are here to help you every step of the way.
Let our team here at Routes To Success answer any questions that you might have and make this transaction as seamless as possible.