FAQ's
Let our team of Expert's answer any questions you might have from a hands on view to make this transaction as seamless as possible.
Who is The Route Store?
Our team is comprised of talented people who have owned, sold, and built businesses from the ground up with each individual having at least 15+ years experience in the industry. We are not just typical sales people, we have been where you are now and know where you want to go in the future. Our talented brokers can assist clients through the process of buying a route and assisting our sellers with the sale of their route. Frank and the team have helped build and run master distribution centers for company's such as Dietz & Watson Provisions, Florida's Natural Orange Juice and Natural Fruit Corporation and we have done so in different states. Can our competition say the same?
What is a route business?
A route business is a group of assigned and established accounts (businesses) that route owners or their employees deliver the product(s) to on behalf of the master distributor. These accounts may include supermarkets, delis, grocery stores, diners, restaurants and office buildings. After the product(s) are delivered to the store. The route owner will usually be paid by COD (Cash on delivery) or Billed meaning they pay the Master Distributor directly.
What is the difference between a COD (Cash on delivery) and a Billed account?
A COD (Cash on delivery) account means after the product is delivered to the store, you get paid in the form of a cash payment. A Billed account is referring to the owner(s) of the account (business) paying the Master Distributor directly. This is typical for major chain accounts that have several locations. At the end of the week you are either given a check from the Master Distributor for the delivered product(s) or the amount owed is credited to your account (This applies to billed accounts only).
What type of routes do you sell?
We sell all types of routes: independent, protected, or start-up routes. These include bread, cake, snacks, chips, beverages, ice cream, provision, vending, automotive, Fed Ex, ATM's and more.
What is a protected route?
There are two types of protected routes: protected stops and protected territory. Protected stops means that you do not have a specified territory. The accounts you have when you purchase the route are registered with the company. This means that nobody else distributing that brand can sell that same branded product to any of your protected accounts. This is in writing with the company and is called a “Distributor Agreement”. Protected territory simply means that the company you have purchased your route from has the specific boundaries for your route. Each route has its own geographic area and nobody from the same distributor can enter and sell to any account(s) in that specified area.
What is the difference between an independent route and a protected route?
Independent routes can pick up from more than one supplier and many times more than four. This guarantees the best prices and a diversity of product lines. Types of independent routes may include bread, cake, meat, provisions, ATM, dairy, vending and service routes. Independent routes generally offer a higher net for a lower price. This is because the landscape is more competitive. Protected routes such as Wise, Fed Ex, and Pepsi are usually household names, have geographic territorial boundaries, and higher valuations.
How do you determine the value of a route and/or business?
There are many variables to determine the value of your route and/or business. The most important one being whether or not your territory and/or stops are protected. Other factors to take into consideration are location of the business, distance between stops, location of the master warehouse, and amount of volume the current owner is producing.
We have published books on our partner website National Business Match that can help assist you in determining the fair market value of your route and/or business. It can also help you to achieve outstanding results in the marketing and selling of your business in a timely manner.
Is financing available?
Yes, the most widely used form of route and/or business financing is owner financing. This means the current owner will hold a note for the new owner. Other forms of financing are company financing, specifically used for routes. This is where the branded company lends the new owner money to purchase the route. A few brands who use this financing option are TastyKake, Pepperidge Farm, and Arnold Bread. To be sure if there are financing options available with the company, check with your seller directly. Each company will have different requirements. Others who finance are Pepperidge Farm for bread and snacks.
How much experience do I need? Will I get any training?
Many of our clients are first time buyers with no prior route experience. It is our duty as a broker to work with you and to give you as much knowledge about the business as we can to help you become successful. More importantly, most companies will have the seller work with you for a period of time as noted in the contract to assist/train you in the business. The training period can range anywhere from two to eight weeks and in certain situations longer. The seller will make sure to train you to the best of his ability in that time frame.
Are routes a good investment? Are there advantages to owning one?
The route business can be a very profitable business. You are able to earn a great income running a route business and the best part is you can be your own boss. This enables you in most cases to adjust your schedule to suit your needs. You also have the opportunity to add stops to help it grow your business. A major benefit of owning your own business is you are able to write off many business expenses.
Can I increase the size of my route?
The majority of route businesses have the option for you to add additional stops which will increase your weekly sales. Contact us directly If you are interested in increasing your weekly sales. Our brokers can assist you with the tips and tricks that they have learned in the business over the years. You can also stop in the stores you already have and introduce new products that they don't currently carry. New stops and additional product sales will help to increase the profit and equity of your route.
Will I need a special license or permit to operate a route?
In most cases there is no need for any special license or permit to operate a Route Business. Although, most beverage routes requirement a CDL Class A, B license and/or with endorsements. This is because of the weight of the vehicle when it is fully loaded with products. Most CDL required trucks are equipped with air brakes.
If I'm interested in a specific route, what do I need to do?
Call The Route Store and speak with one of our sales representatives to obtain all preliminary route information. After that, we will make an appointment for you to meet us as well as the route owner to ride his/her route. This gives you a chance to see whether or not the route is a proper fit for you.
Why should I use The Route Store to purchase my route?
Our independent brokers work closely with The Route Store and have owned numerous routes and businesses throughout the years. They have been where you want to go and took the buying and selling trip many times. We work closely with the buyer and seller to ensure a fair transaction for both parties. Since many people are new to the route and/or business industry they will benefit from our 35+ years of experience, knowledge, and integrity. We provide valuable resources to help market the sellers route for sale as well as helping our buyers find a route that’s a perfect fit for them. We manage every aspect of the transfer process from posting your route for sale, screening potential buyers, guiding negotiations, and working with contract and closing. We also provide a support program here at The Route Store that is second to none. If you need any help on your route that was not provided by the seller, we will personally go on your route with you to assist you. Call or contact us for more details!