Hi there , Luvgzus. Welcome to the Community .
I like the subject of your questions, Looking for bad as well as good experiences is an excellent way to help you make decisions. I look forward to what others have to offer you.
Thank you,I also hope for some good quality Information.
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Hi, My family has been in the route business for over 60 years, not food related, more a service related area, I'd prefer not to say. There are many pros and cons to the route business.... The biggest one to me is not having a "retail" location, having rents always increase etc. There are some things to be carful with routes. Years ago if you owned a route you almost guranteed you had it for life, as long as you serviced your customers properly. Today, you have to seriously look at your contract or agreement with whatever company you are distributing for.... They may give you a 10 year agreement, maybe 25. Talk to other distributors and pick their brain, also hire an attorney to review.... Years ago Coca Cola distributors were making all sorts of money (in the 80's),, only to have their routes taken away by the company..... I think they gave them a nominal fee somewhere in the 80K range,, and then offered them a 40 thousand dollar a year job.... Many guys routes were worth 500- 750 thousand dollars,,,, some of them still had notes..... It was more effective for comapny to pay a driver and pocket the money for themselves.... So the biggest thing is ironing out the contract,,,,, also the company can change the commision given, after contract expires..... I think Pep farm cookies recently lowered commisions from 23-24% to 20%, I am not sure of this 100% though, but told by someone.... That would greatly affect value of route as it is sold on multiples.... Google "Boars Head owner sues ex distributor".. a million dollar distributorship was taken away from a guy, and boars head just gave his customer list to a richmond va distributor,, I don't know the particulars,, but that got really ugly,,, it always does when big money is involved... It is easy for a company to say that your service wasn't up to par and then yank your distributorship... I am not saying that is their intention,, just BEWARE..... make sure you contract with a reputable company........ also look at expenses, gas insurance etc..... make sure their are no workers being paid off the books that will affect profit,,,, Is it a seasonal business,,, take that into consideration when riding the route.....look at a few years tax returns.... Google UTZ routes for sale in new york and new jersey..... You will see EVERYONE selling their routes,,, not a good sign....if it was such a great deal they wouldn't,,, and they are on the market for a while... If you're interested in Bread,, I think Martin's potato bread is one of the best companies,, their commisions are 24%,, and they give you full allotment for stales...and damaged,,,,, which is another big thing,,, since you want to own multiple routes and hire a driver,,,,, ask if that is allowed by company as many want you to be owner operators as they feel you would have more of an interest in product.... I hope I wasn't too negative,,,,,I do like the "route business model",,,, and with the right one can be very profitable Mike
Mike, First of all I would like to thank you for your post I'ts definitely appreciated. You gave us a lot of helpful tips, thanks and if you can share anything else that comes to mind please do so. I personally have a lot of interest in FedEx but want to get more facts and one more that I like is Wise Potato Chips
Thanks again Mike.
Hi everyone and thank you for your interest in this discussion, I currently sell Party Favors for all occasions here in Brooklyn NY but by the end of this year I plan on owning a route business. That being said I'm looking to make an investment for my future with the RIGHT Route business for me. Also keep in mind that my goal is to be a multiple route owner, so discussion on that topic are also welcome, meaning which route business is best to do that with...or maybe it doesn't matter ? I don't know, that's why I need everyone to talk about this stuff.I have read a lot of info on forums about the Fedex route and the one "Mark111" Posted is probably the best one here and I thank him very much,it has helped a lot for me and I'm sure a lot of others too. For that reason alone I love the the sound of Fedex routes, I love the fact that I go to there hub with my personal car...Park...load the truck (home delivery) finish the route and come home with my car. No need to worry about parking a big company truck in a private Garage. I do not own a home yet so these things matter to me. Now lets get to the reason of this post, I am looking for every Major Route Owner listed in the title of this Post and those I could not fit to please Point out the Pro and Cons of your own Route Business. Please understand I really ONLY want Current or Past Owners to comment With all the BAD and GOOD of there personal experience in All of the Major Routes. The point of this is to help me and others get all the info here in one place with every ones point of view. For Example I want to know how are Food Business routes... are expiration close?, return policies?, who does billing?, where do I park company truck? expenses ? what do drivers get paid? Fees for Companies... what are they? Which routes are easiest to handle owner operated?, which routes Don't allow owner operated ? Which has longer hours or Earliest Hours ? You guys get the picture... Please be very informative to this post and please no vague answers, be specific. I want everyone's expertise and advice for someone new wanting to own a Route business with minimal surprises.
Remember doing this Helps other and what you do to or for another you do to or for yourself !!!
Thanks In Advance Guys