Buyer Frequently Asked Questions

Who is  National Route Brokers?

The National Route Brokers team has over 25 years of Various Route Experience and our commitment to changing the way route based businesses are transacted. We evaluate  Routes, offer expert ...Consulting Services... perform Due Diligence / Valuation, assist in growth managment, sales process, training,  and just about anything that would apply to owning  and growing a successful Route business.

What is a route?

A route is a collection of stops or accounts where a specific product is delivered to customers. These customers may include supermarkets, delis, grocery stores, diners, restaurants, schools, nursing homes and even factories and office buildings. Payment is usually made to the owner of the route for the product that has been delivered, either by C.O.D. or on a weekly basis.

What Type of Routes Do You Sell or Broker?

There are many different types of routes that can be purchased. These usually range from Bread, Meat and Provisions, Cake, Snacks, Coffee Catering, Beverage, Cookie, Dairy, Newspaper, Ice Cream, Fed Ex, Vending, etc.  Some of these are name brand routes and are usually protected routes, and others are not. The non name brand routes are called Independent routes.

What is a Protected Route?

A protected route refers to how a particular company keeps their routes boundaries secure. This means that other route owners from that company can’t deliver in your geographic area, which is mapped out with specific boundaries. Other routes can be protected by stops, which simply means the accounts you have when you buy the route or add while you own a route are protected, and noone else selling that same product can deliver or sell to your accounts, but you don’t have a specific area. Either way this is in writing with the company in what is called “Distributor’s Agreement”. 

What is the difference between and Independent Route and a Protected Route?

Independent routes can pick-up from more than 1 supplier and many times more than 4. This guarantees best prices and a diversity of product lines. Types of independent routes may include bread, cake, meat, provisions, dairy, vending and service routes. Independent routes generally offer a higher net for a lower price. Protected routes such as Wise, Fed Ex, and Pepsi are usually household names and have geographic territorial boundaries.

How much is a Route worth and how do you determine the value?

The valuation of a Route Business is determined based on many variables, some of which are the number of accounts, protected territory, independant Routes, name brand, location of accounts. The general rule of 2x the yearly net (double net) still holds true for many routes, including some independent routes. We will work with you to determine the fair market value of your Route Business and achieve outstanding results in Marketing and Selling your Route to facilitate a timely Sale of your Route.

How is Financing handled?

Financing of the down payment on a route can usually be obtained through either a personal loan, second mortgage or a home equity loan. Personal loans are usually limited to $10,000 - $20,000, and that’s with good credit. The Small Business Administration (SBA) and Banks genrally do not give business loans on routes, because in the case of a default, they cannot recoup the route clients. 

The balance remaining after the down payment is usually held by the seller of route, which is personally guaranteed by buyer. The length of time and the amount of interest on the note varies according to market conditions although most sellers currently require 6-8% interest. Payments are made on a monthly basis and the amount of the monthly payment iis usually about one week’s net.

How is my business kept Confidential?

We always maintain the highest level of confidentiality to insure that all parties involved are protected. You can be assured that any and all information pertaining to your client base, income levels, service schedules, etc. remain confidential, and are shared with only individuals/entities that have executed the proper confidentiality agreements. Our reputation is built on protecting the confidentiality of all involved.

How much knowledge of the route business do I need to be successful? 

About 80 % of our clients who purchased a route had no prior route experience.

What type of training should I expect?

We provide the essentials for your business, we make sure you are prepared to grow and expand your business in the months and years ahead. The training period usually lasts from two to three weeks. The route training is performed by the Seller who makes sure that you are 100% confident in your training.

Will I need a license or permits to operate a Route Business?

There is no need for any special licsenses or permits to operate a Route Business. We can address the specifics of your individual route and regional specifics one-on-one.