Buying a Route – The Process
Buying a route is a big decision and the purchasing process can vary greatly from one seller or company to another. This page should answer some of the common questions that come up when a route is being sold.
Independent routes such as vending routes, pool service routes, landscaping businesses, and similar will have very different closing processes than routes which are backed by specific companies. The buyer and seller will have more flexibility in these situations and can decide the easiest way to complete the sale together. Once a price is agreed to we recommend that a Letter of Intent be completed by both the buyer and seller. The Letter of Intent document defines the price and terms for the transaction and also provides a timeline for the closing process. The closing date will be scheduled with enough time for both parties to conduct any additional due diligence. A deposit is commonly made when the Letter of Intent is completed. At the actual closing, both parties would review and approve the Purchase Agreement. Final payment would also be made to the route seller. Once the paperwork is completed and the payment made the deal is official. The Route Exchange can provide templates for the required paperwork and help draft copies that are unique for each sale.
Routes that are backed by specific companies such as Pepperidge Farm, Snyder’s-Lance, Bimbo, Mission, Tastykake and others typically require that the Purchase Agreement and closing process use their paperwork and schedule. This allows the company to conduct credit reviews, personal interviews, draft paperwork, etc. Unfortunately the buyer and seller have to go through the process that is used by the company. Each distribution company has a slightly different process. The closing, from the time a price is agreed on, can take anywhere from 4 to 12 weeks. The buyer and seller can try to speed up the closing by staying in close contact with the district or zone manager for the company. Turning in paperwork on time and requesting frequent updates is a good way to make sure they are working on your deal.
The closing process when buying a route can be confusing, frustrating, time consuming and more. If you have a good understanding of that process and keep it moving forward you will have a much more enjoyable experience. The Route Exchange does its best to make the route sales process as smooth as possible. If you have questions regarding the buying process for a specific route please feel free to contact us any time.