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HOW TO PROTECT A ROUTE


TheLion

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Write up a sales contract, sign it and notarize it.  Have a detailed list of locations and machines.  Be prepared to act if the seller does break the contract.

 

Be sure to visit every location and introduce yourself as the new owner so the locations know.

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WHEN BUYING AN EXISTING ESTABLISHED ROUTE, HOW CAN WE PROTECT OURSELVES FROM THE SELLER, HOW CAN WE BE SURE THAT THE SELLER WONT PICK UP THE MACHINES AFTER HE ALREADY SOLD THE ROUTE TO SOMEONE, AND THEN RESELL THE MACHINES. THANKS.

You cant protect yourself.

Contracts are fine for honest sellers & might make you feel better but they are just a piece of paper and useless if someone is dishonest.

If something happens you can file a lawsuit, that is if you can find the seller to serve papers on, but the dishonest seller wont show up for court and you'll get default judgement but you'll be trying to collect from a ghost.

Buying a route requires you to do your due diligence on the seller & route. If you find they are on the up & up and the route is sound then you might take a chance but it is a risk. Some things to look for. How connected are they to the community? Do they own a house there? Work for a company there or have another business? Do you have mutual acquaintances?

BTW This applies to on site locators who have been known to secure locations then go back later and pick-up machines.

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You cant protect yourself.

Contracts are fine for honest sellers & might make you feel better but they are just a piece of paper and useless if someone is dishonest.

If something happens you can file a lawsuit, that is if you can find the seller to serve papers on, but the dishonest seller wont show up for court and you'll get default judgement but you'll be trying to collect from a ghost.

Buying a route requires you to do your due diligence on the seller & route. If you find they are on the up & up and the route is sound then you might take a chance but it is a risk. Some things to look for. How connected are they to the community? Do they own a house there? Work for a company there or have another business? Do you have mutual acquaintances?

BTW This applies to on site locators who have been known to secure locations then go back later and pick-up machines.

 

This is REALLY sound advice.  

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WHEN BUYING AN EXISTING ESTABLISHED ROUTE, HOW CAN WE PROTECT OURSELVES FROM THE SELLER, HOW CAN WE BE SURE THAT THE SELLER WONT PICK UP THE MACHINES AFTER HE ALREADY SOLD THE ROUTE TO SOMEONE, AND THEN RESELL THE MACHINES. THANKS.

Reading your posts it seems you have a pretty negative outlook.  This business makes money, this forum is full of tips...if you like it run with it...stumble...then keep going.

 

Negativity can ruin any business imo

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WHEN BUYING AN EXISTING ESTABLISHED ROUTE, HOW CAN WE PROTECT OURSELVES FROM THE SELLER, HOW CAN WE BE SURE THAT THE SELLER WONT PICK UP THE MACHINES AFTER HE ALREADY SOLD THE ROUTE TO SOMEONE, AND THEN RESELL THE MACHINES. THANKS.

We've purchased five different routes so far.  Only on one was the guy really sheisty.  He misled us, but only because we were over confident and let him.  The other four were stand up straightforward deals from good people that were just ready to move on. (These are the deals you should be looking for.)

 

This is the process that we've developed so far by trial and error and with the advice gathered from some of the more experienced players on the forum.

 

1.  If you base the price on route revenues, knock thirty percent off of whatever figure they give you. (This you will keep to yourself) 

2.  Make your deal so that you keep the money in the machines. (If the seller has a problem with this it is most likely a sign of trouble)

3.  Only pay in full on smaller deals.  If you work out credit terms on bigger deals the seller has a lot more incentive to be straight up.

4.  Go on a collection run with a figure in your mind that you need to hit before you will transact a deal.  I use a smartphone to show the seller proof of funds, and tell them our last stop will be the bank for the cash and the transaction.

5.  When you meet the seller face to face, don't be afraid to ask the tough questions and watch his face.  Your subconscious will tell you if he's lying.  Caveat Emptor (Buyer Beware), your taking on all of the risk if your paying in full.

6.  Document the transaction well with a bill of sale that includes equipment, locations, and a notary signature.

 

7.  This is the thing that got us into some trouble on the one deal I mentioned earlier.  DON'T GET EXCITED AND FEEL LIKE YOU HAVE TO MAKE THE DEAL, YOU'LL SET YOURSELF UP FOR FAILURE AND BLIND YOUR SENSES!

 

This is still a work in progress.  We will be consulting an attorney to go over this process in the near future. 

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