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    2 Replies Latest reply on Jul 25, 2008 10:23 AM by LUCKIEST

    Funding for purchase of existing business

    Grandpa Newbie
      We have an opportunity to purchase an existing & profitable Bon Appetite Pastries distribution route in N.E. Atlanta, metro. My son has been working the route for over 18 mo. The owner is moving and ready to sell Need $60K. Credit score is over 700.
        • Re: Funding for purchase of existing business
          LUCKIEST Guide
          Funding for purchase of existing business, Welcome Grandpa

          Tell me more. Have you seen prior year tax returns??
          Who will be the owner(s)?? you?? your son??

          Have you prepared a Cash Flow Report?? and How long will you need the funds for??

          Good luck, LUCKIEST
            • Re: Funding for purchase of existing business
              Grandpa Newbie

              Hello,

              We have not seen there tax returns. They own 4 routes. We have 18 months data on the sales for this route.

              My wife and myself will be the owner. Below is a brief overview. We are working on a business plan.

               


              OVERVIEW

               


              Requesting a loan of $60,000.00 to purchase an existing & profitable business.

               


              It is Bon Appetite Pastries Inc. vending route. The route owners are Renee and Martin Duncan (Duncan Pastries, Inc.). They own four routes. They are selling this route for several reasons. The major reason is, they have moved to Madison, GA and are expanding routes to the east of Atlanta and need cash.

               


              The route is located in DeKalb & Gwinnett counties. It has 72 locations. Of the 72 stores, only 7 are corporate (billed monthly) and 65 are cash on delivery (COD). Most are convenience stores.

               


              Roger Kruger (age 39), my son, has been successfully working this route since Jan. 07. We have 4 prospects in Gwinnett and plan to market in North Gwinnett, Hall & Barrow.

               


              Bon Appetit® is a 20 year old, privately owned baking company, specializing in gourmet baking and distribution of top quality Danish, cakes, muffins and a vast assortment of other fine gourmet products to the retail and convenience store industry. The corporate office is located in Vernon, CA. The product is stocked at a warehouse located on Boulevard Street in Atlanta.

               


              http://www.bonappetitbakery.com/home/home
              .html

               


              Route Financial History:

               

              Annual Gross: $5000.00 x 52 = $260,000.00 - past 18th months

               

              Annual product cost: $194,480.00

              Annual gross profit: $65,520.00

               

              Expenses: Current Salary paid Roger- $31,200.00 (Independent Contractor)

               

              Other - none, except for administering the business

               

              Profit: $34,320

               

              The individual cost per piece is currently $0.68. Ave. Weekly Cost: $3,740.00

               

              The individual sale price per piece to the store is currently $0.86 - $1.05

               

              The average weekly total of individual pieces sold is 5500

               

               


              Robert J. Kruger - July 25, 2008