Sterling – Athol MA Utz Snack Route
Price: $140,000 – Weekly Sales: $9,400
This listing is for an Utz snack distribution route with a price of $140,000. The owner distributes a variety of snack related products including Utz, Bachman, Watchusett and many others to major grocery retailers including Walmart, Market Basket, Hannaford’s and more. The accounts are in Athol, MA and storage location for product pickup is in Sterling, MA
The route is currently averaging approximately 9,400 per week in gross sales volume. The route generates roughly $1,800 per week in gross commissions based on a 20% commission rate.
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 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 route requires approximately 40 hours per week on a normal week. Most owners take Wednesday and Sunday off while making deliveries the other five days of the week.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $9,400 in weekly sales volume. With an average commission rate of 20% the owner generates approximately $1,800 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 operators cover all of their own operating costs. If a new owner wanted to run one of the routes then the current owner estimates $200 per week per route in operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
GROWTH POTENTIAL
There are display opportunities and the potential for more space in stores that is not being maximized with the current route operator.
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
A minimum down payment of approximately 20% or $28,000 is required. The remaining amount can be financed through the company and their bank partner for qualified buyers.
VEHICLE AND OTHER EQUIPMENT
Truck is negotiable and not included in the current price
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
The route has relatively flexible hours as long as the accounts are serviced properly. Most owners take Wednesdays and Sundays off. Merchandising work may be necessary on busier weeks but can be easily outsourced if the owner chooses to do so. The current owner typically works 40 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 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
