What should I check before buying a bread route?

A route’s earnings come from a handful of simple records, and most of them sit with the supplier, not the seller. You can ask the supplier for them. You may want to start by asking how much a route costs. A better first question is what the seller is asking you to pay for, and whether each part of it is something you will actually get.

The supplier’s settlement statements

Ask for the statements the supplier issues to the operator over a long period, not a few good weeks. They show what was delivered, what came back and what the operator was paid. Compare them with the seller’s tax records and bank deposits. If the numbers differ, ask the seller to explain each difference before you go further.

Stale product and the store list

Ask how stale and returned product is handled, and who bears the loss. Then go through the store list one store at a time. Which stores carry the product on a regular basis? Who decides the shelf space, the store or the supplier? A route that depends on a few stores can change quickly if one of them drops the line.

The truck and the hours

Have a mechanic inspect the truck. Check the title or lease, any lender’s claim and the maintenance records. Then ride along for several days, including early mornings and a holiday week if you can. The hours are part of what you buy. A route the owner runs six days a week involves your own time; list the weekly hours and ask your accountant how to treat it.

What the asking price is built from

• The operator’s rights under the supplier agreement.
• The truck and equipment.
• Stock on hand at closing.
• Anything the seller calls goodwill.

Ask the seller to show how each part was reached. For a wider list of questions, see what to know before buying a logistics or courier business, though a supplier-granted route works differently from a carrier with contracts.