HolsumAZ.com > Contact Us > Routes For Sale
Q: I'm interested but where do I start?
A: In order to represent Holsum on the route you purchase from a Seller (the current I/D), you first need to be qualified by Holsum before you would enter into a Distributor Agreement together.
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Q: What experience do I need?
A: Related experience is preferred but not necessary if you understand and are committed to do what is required to be successful in this business because your customers, the Distributor network, and Holsum are relying on that commitment.
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Q: How do I locate routes for sale?
A: Search for Routes for Sale at this website using the menu on the left of this page.
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Q: How do I set up a route ride to see what it's all about?
A: When you select a route to buy, you will meet with the Seller, ride the route, check out the vehicle, look at the Seller's books and tax returns, etc., to determine if this is the route for you.
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Q: How do I verify the Seller's figures?
A: Once you and the Seller have come to terms, you will complete a 2-page Sales Packet. Page 1 outlines the components of the sale, lists the stops, shows the net gross sales volume averaged over the past 52-weeks, and calculates the current gross profit (income or proceeds). Additionally, you will ride with the Seller and see what he invoices at each customer. You will review and discuss the Seller's business documents and route accounting paperwork, such as invoices and handheld reports until you are comfortable that the figures presented to you are accurate.
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Q: How much money will I make and how often do I get a paycheck?
A: Each week you receive a check for the previous week's sales less your cost of product. You receive cash directly from non-charge accounts. Your proceeds or margin is the difference between your invoiced sales and your cost of product and by the level service required by the customer. For example, although there are exceptions by route, metropolitan Distributors have the following general service margins.
- Full Service @ $.20/Dollar
- Service: For Holsum retail branded products--you do it all for the customer: order, stock, rotate and return stale on code for credit from Holsum. This service level covers the majority of your customers.
- Customer Type: Chain, independent & club store grocer, restaurant
- Modified Drop Ship @ $.15/Dollar
- Service: Usually unbranded or private label--you or customer order, stock, credit stale; you don't do it all for the customer.
- Customer Type: Some fast food accounts, bid accounts
- Drop Ship @ $.10/Dollar
- Service: Unbranded or grocers' private label--customer orders, stocks, rotates and stands stale; you deliver it.
- Customer Type: Chain store, independent grocer, club store
Depending on the customer mix within a route Sales Area, the overall margin may vary; e.g.; Distributor A may have an overall margin factor of 18.5 because he serves a fast food account; while Distributor B has a margin factor of 17.75 because he does private label business. To be a full "20", the Distributor would serve only accounts with service at the $.20/Dollar margin.
During the sale process, the Seller will give you specific detail by account and level of service. Seller's supporting documentation should enable you to verify average sales and income. Since Holsum does not own or run the route business, it is inappropriate for Holsum to supply verification of sales data for the Seller.
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Q: How long is the workday of a typical route?
A: There is no "typical" workday. Each I/O has different work hours depending on their own efficiency and the distance from their route sales area to their home and their assigned Holsum Depot, customer types, service windows, sales volume, and the number of customer stops. Holsum I/O's generally start their workday at their Depots very early; i.e., 2:00-4:00 am, in order to meet their customers' requirements for service.
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Q: Do I have to go out and get my own accounts?
A: You do not purchase accounts when you buy a route. Each route has a written description of the territory perimeter. Everything inside that perimeter is the route Sales Area, the "dirt", in which the Buyer will have the sole distribution rights to represent Holsum products. Holsum will not grant distribution rights to another distributor in that Sales Area per the Distribution Agreement signed with the Buyer. And, if a new customer opens in the Sales Area after the route purchase, the Buyer pays nothing either to the Seller or Holsum. Likewise, if a stop closes after purchase, there is no payment made to the Buyer. Although most of your customers will be established at the time your buy your distributorship, if there is a non-stop or new customer on your route, notify your Area Coordinator who will assist you in ordering product samples and setting up a sales call together.
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Q: Will Holsum train me?
A: As a self-employed I/O of your bakery distributorship, you are solely responsible for the operation of your route business; however, you will ride with the Seller and then Holsum will conduct an orientation with you to help you understand how to interface with Holsum so that you get your proceeds check and information on time and accurately.
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Q: Do I get any insurance or health benefits from Holsum?
A: Legally, Holsum as your bakery supplier, cannot offer you benefits as you are not an employee of Holsum. There are commericial insurers who work with independent distributors to provide a wide range of medical, life and disability insurances for your consideration. Remember, as a self-employed I/O of your bakery distributorship, you are solely responsible for the operation of your route business, including your paperwork, taxes, governmental agency compliance, insurance, benefits, and equipment, as well as the hiring and training of your employees/agents.
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Q: How do I take time off?
A: You can hire agents or employees for your route operation and, yes, you can arrange for time away by hiring vacation relief drivers, some of whom freelance their services directly to our I/O network. However, you are responsible for the training and performance of your employees.
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Q: How much money do I need to put down on a route purchase?
A: The deposit is usually $500 but can be any amount the Seller and Buyer agree upon and is non-refundable at Seller's option unless the Buyer receives a contingency such as obtaining satisfactory financing.
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Q: How much financing will I qualify for?
A: That is a difficult question to answer at the beginning of this process, even though it's one that is important to you. Until you select a specific route, it's like asking what financing will you get on a house in Phoenix, but not identifying the house. There are many variables that a lender will consider--your credit worthiness, your debt ratio, the seller's volume verification and the lender's ratio of loan to value. Be patient and the facts will become increasingly apparent in order for you to make the best decisions.
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Q: Will a bankruptcy disqualify me with Holsum?
A: Not necessarily, but our Credit Department is going to look at how long ago the bankruptcy was filed, why it was filed (the last resort or easy way out), and what you have done since. If you cannot manage your personal credit well, then adding a business will make it that much more difficult for you to succeed. And, Holsum needs to know that you will pay them promptly when due.
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Q: Can I carry other products?
A: As an independent distributor, you can carry other lines and products as long as: 1) those products do not compete with your best efforts obligations to represent and market Holsum products; and 2) that they do not contaminate the sanitary condition of your bakery vehicle.
Because they can, many of our "outside" distributors carry chips, tortillas, cookies, pies and cakes which Holsum does not produce so they purchase these items from other bakeries and food manufacturers.
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