Price: $45,000 – Weekly Sales: $5,700
*** INDUSTRY BEST 25% COMMISSION RATE ***
This listing is for a master distributorship for Chifles plantain chips and snacks. The owner distributes a variety of snack products from Chifles to major grocery retailers including Publix, Walmart and Winn Dixie. This opportunity has massive potential due to the size of the territory and the easy growth potential for a motivated owner. The territory stretches from The Villages to Live Oak and includes major metro areas like Ocala and Gainesville. The warehouse for product pickup is located in Ocala, FL.
Perfect for route team due to massive expansion opportunity. Ocala and other areas in north central Florida are growing quickly and plantain chip products are growing in popularity. There are new accounts opening in the area and a huge number of existing accounts that are not being serviced at this time. The Chifles sales representative indicates this route has the potential weekly sales of $12,000 to $15,000 per week generating weekly commissions of $3,000 to $3,750 or annual income of $150,000 to $195,000.
The route is currently averaging approximately $5,700 per week in gross sales volume. The route currently generates approximately $1,425 per week in gross commissions. The current owner is managing and operating several other routes and has not had the time to expand this business further. For example, there are five (5) Publix, nine (9) Walmarts, and three (3) Winn Dixie stores that could be added very easily if a new owner was able to service them. The current owner just does not have time to properly take care of those accounts. There is a great deal of sales volume and income being left on the table that a new owner could take advantage of very quickly.
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a rapidly growing 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. Most operators work Monday, Tuesday, Thursday, Friday, Saturday and hours are typically around 3:30am – 2:00pm. Route owners will order, deliver and stock product accordingly. There is flexibility in the days and hours as long as the customers are being serviced properly. The route generally requires approximately 45-50 hours per week.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $5,700 in weekly sales volume. With an average commission rate of 25% the owner generates approximately $1,425 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. Sales can be increased by adding accounts or growing sales volume within the current accounts.
OPERATING COSTS
The current owner estimates $475 per week in operating costs which includes gas ($250), insurance ($92), maintenance ($25), handheld computer/printer ($9), storage ($85) and returns/lost inventory ($15).
Expenses will vary from owner to owner depending on how far they are from the warehouse and territory, what type of vehicle they use, what rates they receive on insurance, etc. The current owner estimates per week in operating costs which includes gas, insurance, storage, maintenance, handheld computer/printer, and expired product expenses.
The current owner currently has about $475 in weekly expenses which leaves a weekly net of approximately $950 for the route. That figure does not include labor costs, loan payments, taxes, etc. as they are highly variable from owner to owner.
GROWTH POTENTIAL
This route has incredible growth potential. The entire territory has not been developed and could easily support multiple trucks if an owner increases sales volume. There are accounts that have requested service but have not been added due to time constraints for the current owner. There are display opportunities and the potential for more space in stores that is not being maximized with the current route operator. This is a terrific territory with new products being introduced and a great account base. A motivated owner should be able to increase sales quite easily if they put in the time and effort to grow the business. The company, Chifles, has significantly increased their revenues over the last several years. Plantain chips are a growing market, especially in Florida.
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 could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
N/A
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
This route requires approximately 50 hours per week.
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 the current route owner. 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. If the buyer is utilizing the company’s financing then a basic credit check will be conducted.
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