Price: $165,000 – Weekly Sales: $16,000
Owner financing for buyers with good credit. 60% down payment required.
This listing is for a Mission tortilla distribution route with a price of $165,000. The owner distributes a variety of tortilla and bakery products to major grocery retailers. The accounts and warehouse storage facility are located in Indio, CA.
The the route is currently averaging approximately $16,000 per week in gross sales volume The route generates approximately $2,475 per week in gross commissions based on an average 16% commission rate. Products have varying commission rates depending on the product category and customer. Operating costs will vary from owner but are estimated at $250 per week leaving earnings of approximately $2,225 per week for an owner operator.
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This route has five major retail accounts. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a number one selling food manufacturer. Full training will be provided.
WHAT ARE THE DAILY RESPONSIBILITIES OF THE ROUTE OWNER?
The route owner is responsible for servicing their customer base and ensuring that product is well stocked and maintained for the consumer. Route owners will order, deliver and stock product accordingly. The current owner visits three accounts four times per week, one account five times per week, and one account six times per week. Any merchandising work can easily be outsourced if the route owner would prefer to have those days off. The owner currently has someone handling that on Sundays at one account as necessary.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $16,000 in weekly sales volume. With an average commission rate of 16% the owner generates approximately $2,475 per week in gross commissions. The sales volume can be confirmed through sales reports/invoices. Sales reports and other information can be provided once we receive an NDA submission.
OPERATING COSTS
Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. Currently the route operator covers all of their own operating costs. If the new owner wanted to run one of the routes then the current owner estimates $250 per week in operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
GROWTH POTENTIAL
Nearly every route has growth potential both within the current accounts or by adding new customers to the route. The route owner can work with current accounts and company managers to maximize sales volume. New accounts such as independent grocery stores, restaurants, schools, hospitals and other accounts could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
No company or owner financing is available for this route. We do have a partner that specializes in small business/startup funding. Most programs do require a 680+ credit score or existing retirement/investment savings.
VEHICLE AND OTHER EQUIPMENT
N/A
TRAINING
The current owner has agreed to provide training to the buyer. In addition to training from the current route owner, the company will provide some assistance when possible and will always provide administrative/sales support. The manufacturer wants their route owners to be successful so you will have a solid support system behind you.
SCHEDULE
Th current owner is an absentee owner but the route generally requires five days per week for approximate 6-8 hours per day. Owning a route means that you are an independent owner/operator/contractor. You are ultimately responsible for the success of the route operation and you will need to find route coverage if you are sick or on vacation. Most route sellers and existing owners have a coverage person whose contact information they can share. Otherwise you are free to train someone to run your route while you are unavailable. It can require some effort and coordination to setup time off…but it does provide a lot of flexibility once you have a person or two that can cover your route operation when requested.
PURCHASING PROCESS AND REQUIREMENTS
Route buyers will have an opportunity to meet with both the current route owner and the management team at the company. You will need company approval to purchase the route. Credit checks and background checks may be necessary as well. Most companies are requiring that route owners have an LLC or corporation so that they are personally separated from the business. The incorporation process is relatively straightforward for most states and can typically be completed through your state’s secretary of state/business registration website.
REQUEST MORE INFORMATION
Our route blog is a fantastic place to find more information on the distribution route business. There are a wide variety of articles including overviews on different types of routes (bread, snack, vending, etc) and others that discuss general route operating topics.
If you are interested in acquiring more information on this route please submit our non-disclosure agreement here. Please note the route number or route location on your NDA submission so that we can send over the correct information.
If you have any other questions please feel free to contact us through this form or by email at Jay@TheRouteExchange.com