How to Buy a Route
Finding a Route
It can be difficult for the average person to determine how to buy a route. Distribution routes aren’t extremely common and most people have no idea that many of them are independently owned and operated. Route businesses are often great opportunities but finding the right one can be tough. The easiest way to find a route is to search route listings that are online. Our listings allow you to search by location or type of route, the two most important factors for most route owners.
Researching the Route
Here is just an example of the factors to consider when looking at a route listing:
- What type of route is it?
- What is the sales history?
- How is the owner compensated? Sales commission, salary + commission, etc. Also, how is damaged inventory handled?
- Is a truck necessary? If so, is the truck included with the route?
- How is the price of the route calculated?
- How can the owner add value to the route? New accounts, expanded sales in current accounts, new product lines, relocation of equipment?
Any route listing service should provide all of the information you need to make a good business decision. You can always request documentation that shows the sales history, route territory agreement, etc. If you have questions about researching a route please feel free to contact us
How to Buy a Route
The process of buying a route can range anywhere from 2-10 weeks. The length of time varies quite a bit depending on the financing requirements and what type of route you are purchasing. Once the buyer and seller agree to a price and any other terms, an “intent to purchase” can be submitted. The completed intent to purchase will hold the route for buyer. At this time the new buyer will complete the purchasing paperwork. Some companies require that the owner of the route be incorporated to own the route and others may require a short interview with the buyer.
Purchasing paperwork is submitted. Most companies have agreements with banking institutions and are able to provide financing options. Once the paperwork is approved a closing date will be set. This is similar to a real estate closing. Payment is made to the seller and the route is officially sold.