STEPS INVOLVED TO BUY A ROUTE
First Contact:
- Routes R Us will begin with conversation about the route you are interested in.
- Routes R Us will cover all non-confidential information relating to the route that you are inquiring about.
- Routes R Us will answer any questions you have regarding the process.
Meet Certain Distribution Company Guidelines:
Many Distribution Companies require distributors to either be incorporated and/or listed as an LLC (Limited Liability Company). Routes R Us will let you know if this is something required to move forward with a particular route. The amount of time to establish your Corporation or LLC will vary based on the legal service chosen.
Financial Diligence and Verification:
The majority of route sales funding is provided or supported by the distribution company. Unfortunately, most companies do not offer 100% funding to purchase routes. In order to secure funding, the buyer needs to have a down payment. The down payment is determined by the distribution company or by the distribution company’s finance partner. As a service to our sellers, Routes R Us will prequalify all potential buyers to make sure they have access to the down payment (when distribution company financing is available) or have access to the cost of the route (when distribution company financing is not available). Routes R Us does not ask for specific or personal finance information. Routes R Us will request a current bank statement or other financial statement showing the down payment amount available without specific account numbers. If this is not a viable option, we will ask for a letter of available funds from the bank or the creditor making such funds available. Routes R Us requires a government issued identification from all verified buyers. These documents are kept confidential and not shared with the seller. This step helps streamline the process of buying a route. You can view Routes R Us Privacy Policy at the bottom of the homepage, or you can email info@Routesrus.com to have a copy of the Privacy Policy emailed to you.
Non-Disclosure Agreement:
Routes R Us requires a Confidential Non-Disclosure Agreement. This protects you as a buyer and protects the seller from the buyer disclosing confidential information that might be supplied by the seller. This will help answer specific questions you have about the specific route.
Initial Contact with Seller:
Once we have verified the financial aspect of the purchase it is time for the buyer to speak directly with the seller. This is where you get to ask specific questions regarding the route. Routes R Us will facilitate the conversation so that you (the buyer) will be able to get your questions answered.
Spend the day with the Seller:
This is a suggested step and not required by any of the parties involved in selling or buying of a route. Since Routes R Us has decades of experience in running and managing routes, we see this as a very helpful tool to make sure the route is the right fit for you.
Make an offer to purchase the route:
You can make an offer at any time after the financial verification has been completed. When you choose to make an offer does not end the process, in reality it is technically just the beginning. You as the Buyer will need to verify any and all of the Sellers representations made to you for accuracy. RoutesRUs, LLC will verify sales information provided by the seller prior to the route being listed for sale. RoutesRUs, LLC will present any and all offers from potential Buyers to the Seller. If the Seller does not accept your offer, you are free to make a counter offer or walk away. We will be happy to help through this process.
*This service is only available with our brokerage services and is not available in all states.
Agreement to Purchase Route:
Once the Buyer and Seller have agreed on a purchase price, a Sales Contract will be executed between the Buyer and Seller. Once the Sales Contract is signed, the Buyer will be required to make a Good Faith Deposit to secure the route. In some cases the company may want to interview the prospective Buyer before approving the sale. This is normally a formality that Routes R Us will help facilitate. If the Buyer is going to be using the distribution company financing then a credit application will be submitted to the company for approval. The requirements may vary based on the company and/or bank. All final credit decisions are completed by the Distribution Company and/or Finance Company. (Routes R Us, LLC has no influence in any credit approval decisions).
Some of the Typical Requirements Are:
- Acceptable Credit Score (normally 600 or better) or have an acceptable co-signer
- No Bankruptcies
- No derogatory credit in the last 6 months
- No Judgements, Repossessions or Collections
- Credit/Debt Ratio of 60% or less (this can change with a larger down payment)
*This service is only available with our brokerage services and is not available in all states.
Deposit:
Once the sales price is agreed on the Buyer will be required to make a Good Faith Deposit to Routes R Us. Routes R Us requires this deposit to be 5% of the selling price or $5000 whichever amount is greater (These monies will be subtracted from the total required down payment amount). All deposits are made via bank or credit union wire transfer. Once the deposit is received, the parties will enter into a Deposit Agreement. If the buyer is not approved by the Distribution or Finance company to complete the purchase the deposit will be returned to the Buyer within 5 business days.
*This service is only available with our brokerage services and is not available in all states.
Closing (Transfer of Distributorship Ownership):
The actual closing date varies based on a number of factors (the Distribution Company, if the Buyer is financing the cost of the route, etc.). In the case of financing the route through the Distribution Company the closing time varies by the company and/or finance company. Once the closing date is established you will need to sign all necessary documents to take ownership of your new route. At the time of closing all funds exchanged between Buyer and Seller must be in the form of certified funds. Once the closing is complete the “Good Faith Deposit” will be released from the deposit account.
Disclaimer: Routes R Us, LLC is a company that helps route owners/route distributors buy and sell routes. Routes R Us, LLC offers brokerage services in most states. Routes R Us LLC’S Marketing & Consulting Division is a division of the Company that provides strategic Marketing and Consulting services exclusively to route owners/route distributors with routes available for purchase. Sellers who contract with Routes R Us, LLC’s Marketing & Consulting Division receive a different set of services that do not include price negotiation, inquiries into the assets of potential buyers, the holding of deposited funds from buyers, or participation in the sale transaction. Routes R Us, LLC brings buyers and sellers together. All agreements are made solely between the buyer and seller, and Routes R Us, LLC is not a party to these agreements. Routes R Us, LLC will not act as a broker in any state where doing so is prohibited by law. In such states, Routes R Us, LLC’s participation is limited to providing marketing and consultant services. Any recommendations or information provided by the Company, including its Marketing & Consulting Division, are opinions based on industry experience. Routes R Us, LLC makes no guarantee of sales or income. It is a prospective buyer’s duty and obligation to verify the accuracy of a seller’s representations and of the seller to satisfy its legal and contractual obligations. Routes R Us, LLC recommends that both prospective buyers and prospective sellers consult with their own attorneys, accountants, business appraisers, and other professionals prior to engaging in any transaction.