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Anyone with comments about owning/running a route (Mission or Pepperidge etc) and the reliability of income?

I am considering purchasing an existing route and running the route day to day as a means for income and long term investment.

I havent found much in the way of good/bad online about this type of venture or a way to understand the ins and outs of the business.

Any opinions and thoughts would be appreciated.

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Answers (3)
ROUTE BROKERS®, INC. * * * * * * * * * * * * * * * * * * F R E E * CONSULTATIONS

In answer to your request, we would be pleased to assist you in your search for a route business. We are Brokers that specialize in the Route Distribution Business. Some examples would be Snapple, FedEx, Boar's Head, Pepperidge Farm, etc.

Our firm, has the largest selection of ESTABLISHED distribution businesses in the United States. These are NOT Franchises. We currently have NATIONWIDE over 250 businesses for sale. We have been in business for over 25 years and have sold THOUSANDS of businesses.

Our goal with any client is to develop a long term relationship. You can only do that if you listen to your clients and assist them in moving through the maze of legitimate questions needed to be answered before a business transaction can be consummated. Most of our new clients are referred to us by our existing clients. We would be pleased to work with you and truly believe that soon you will be referring new clients to us also.

Look forward to hearing from you soon.
Ken Sussman
Route Brokers, Inc.
1-877-4-ROUTES (1-877-476-8837)

Jun 18, 2010
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Cunningham & Company, Ltd.
CPA's - (Chicago Area)
Kane County, IL

My (admittedly) sparse experience/knowledge/opinion of these routes (based on my discussions with a grocery store employee that deals with all the route drivers) says the hours could be long and the route location is absolutely critical. In addition, the brand (Pepperidge, etc) is also critical. There is a big difference in profit margins between the various routes. Purchasing (as compared to establishing from "scratch") a route however will allow you to perform the necessary due diligence work to get comfortable with the historical sales and expenses of the current owner. IMHO the profitability of routes can vary significantly. Early in the discussions, ask the seller for a cash flow statement covering the last 3 years, then screen the opportunity accordingly and determine if it's worth pursuing.

I suggest you consult with an experienced CPA (not a generalist - but one that that works on "buy-side" business transfers) to help you with this part of the process. Good luck in your search. (Also, you can't do TOO MUCH research!)

May 23, 2010
Jon Holmquist
Edgemaster Model 400 sharpener
Marion County, OR

Only suggest that you look at the potential, hours necessary to run the route and the expenses of the vehicle, insurance, maintenance, replacement, etc. What would happen if you lose your sourse of product. I once owned the distributorship but lost the product which gave me the ownership of nothing.
Check our offering to see how it compares, and good luck. Jon at Edgemaster Mobile Sharpening.

May 4, 2010