Does the supplier have to approve the sale of a delivery route?

The agreement behind a route is the document to read closely. If the bakery, dairy or carrier granted the route, the agreement decides who may run it. Sellers sometimes say the supplier never objects. That may be true of the past and still tell you nothing about the supplier’s right to refuse you. Read the document and speak to the supplier.

Consent and approval of the buyer

Look for words such as assign, transfer, consent or approval. Some agreements bar a transfer altogether. Others allow it if the supplier approves the new operator, and the supplier may look at your finances, experience and equipment. Ask whether approval can be refused for any reason or only for stated ones. Ask also whether the supplier charges anything for the change.

Termination and notice

Find out how the agreement ends. Can the supplier end it on short notice without giving a reason? If so, the route you buy can be taken back almost as soon as you own it. Check whether a fixed term is stated, what renewal looks like and what happens to the stock and equipment if it ends.

Territory and exclusivity

The agreement should say which stores or area belong to the route and whether another operator can serve them. Check whether the supplier can add, move or remove stores. A route with a shifting list is harder to plan around, and a buyer should ask for the current list in writing.

Why this is a question for a lawyer

Whether a particular agreement can be transferred, and on what terms, turns on its wording and on the law that applies to it. Take it to a lawyer before any offer, and ask whether the offer should depend on the supplier’s written consent. See also how to check location agreements on a vending route, which raises similar questions for another kind of route.