Explaining the Route Sales Process

Many individuals that are interested in route businesses do not have a good understanding of the route sales process.  The purpose of this article is to outline that process and provide a quick overview of how you can buy or sell a route.  This outline may not apply perfectly to each and every route but should present a good understanding of the purchasing process.

1. A seller will decide to sell their route and begin searching for buyers
   1. Sellers can do this on their own or by working with an organization like The Route Exchange. The key is to find qualified buyers who understand the business and have the ability to purchase the route from a financial standpoint
2. Buyers typically find route opportunities through internet listings/advertising or word of mouth
   1. For example, The Route Exchange specializes in generating interest across the internet.  This is accomplished through online route listings, advertising through business sales websites/search engines, and other sources
3. The buyer contacts the sales agent or the seller of the route business
   1. The seller answers questions and provides general information on the route including territory, equipment and sales information
4. The buyer and seller can setup a meeting or “ride along” on their route
   1. Third party services may require non-disclosure agreements and proof of funding before this can be arranged. This protects both the buyer and seller…the buyer will receive quick answer and responses from the seller because they have confidence that the buyer is serious
   2. Without a third party the seller will need to determine if they think the buyer is serious and qualified
5. If an offer is made and accepted, many routes will require the buyer to meet with district/regional managers from the company (Pepperidge Farm, Mission, Bimbo, Arnold, Utz, Snyder’s-Lance, etc.)
   1. This meeting serves two purposes.  First, it allows the buyer to confirm the information they have been provided by the seller.  Second, it gives the company a chance to sit down with the buyer and make sure they will be a good fit for the route
6. Closing documents will be drawn up by the seller or the company itself
   1. If the company is providing financing then the loan will need to be approved before the closing takes place
   2. The purchase agreement will outline any assets being sold and define the territory or specific route locations that are included
7. A closing date is established and the sale finalized
   1. Any remaining balance for the route will be due at the closing. Both parties will sign off on the terms of the sale

If you have any questions on the route sales process please contact us at any time. Thank you.