DNA Posted March 3, 2014 Share Posted March 3, 2014 Hi everyone, I'm new to the vending business and have been looking into acquiring an existing soda/snack route. How do you determine the value of a route? This particular route has about 120 machines in different locations and weekly gross is about $8500. If anyone could help me figure out what a reasonable price be for this route or determine how to evaluate the value of any other routes. Any help is very much appreciated. Thank you DNA Link to comment Share on other sites More sharing options...
FrCorey Posted March 3, 2014 Share Posted March 3, 2014 First make sure they own them. the machines arent leased or owned by someone else. have them prove how much they earn too. and try and find out the type and models so you can see how old they are. You dont want a bunch of bizopp machines you cant get parts for. Link to comment Share on other sites More sharing options...
DNA Posted March 3, 2014 Author Share Posted March 3, 2014 All the machines are owned out right and all locations have been established for sometime, and I've seen weekly totals. Link to comment Share on other sites More sharing options...
moondog Posted March 3, 2014 Share Posted March 3, 2014 Hi everyone, I'm new to the vending business and have been looking into acquiring an existing soda/snack route. How do you determine the value of a route? This particular route has about 120 machines in different locations and weekly gross is about $8500. If anyone could help me figure out what a reasonable price be for this route or determine how to evaluate the value of any other routes. Any help is very much appreciated. Thank you DNA I use fair value of the equipment plus three months gross - others use ten months gross plus or minus depending on the quality of the equipment This is a huge undertaking and I have my doubts if a newbie should bite off so much initially Link to comment Share on other sites More sharing options...
mission vending Posted March 3, 2014 Share Posted March 3, 2014 Hi everyone, I'm new to the vending business and have been looking into acquiring an existing soda/snack route. How do you determine the value of a route? This particular route has about 120 machines in different locations and weekly gross is about $8500. If anyone could help me figure out what a reasonable price be for this route or determine how to evaluate the value of any other routes. Any help is very much appreciated. Thank you DNA Without more information it is impossible to put any kind of reasonably accurate number on it. 150-250 K Link to comment Share on other sites More sharing options...
tallguy Posted March 3, 2014 Share Posted March 3, 2014 First make sure they own them. the machines arent leased or owned by someone else. have them prove how much they earn too. and try and find out the type and models so you can see how old they are. You dont want a bunch of bizopp machines you cant get parts for. How do you make sure they own them? Is their word good enough? Do you need to see receipts from a previous sale? Also, what are the various things you need to do legally in order to buy a route? Does the buyer or seller form the contract? Is there a standard template in the industry? Do I need to retain an attorney? Link to comment Share on other sites More sharing options...
FrCorey Posted March 3, 2014 Share Posted March 3, 2014 How do you make sure they own them? Is their word good enough? Do you need to see receipts from a previous sale? Also, what are the various things you need to do legally in order to buy a route? Does the buyer or seller form the contract? Is there a standard template in the industry? Do I need to retain an attorney? Proof of ownership. receipts, bills of sale. lots of people buy on credit or lease, and then lose money and want to get out of it. and some places let you use thier machines for free if you buy thier products. so you could be buy a load of hot machines. I have seen contracts and forms at some vending site, but cant remember where. Link to comment Share on other sites More sharing options...
allen watson Posted March 3, 2014 Share Posted March 3, 2014 I purchased a 70 machine/35 stop route 5 years ago and it has been wonderful. Prior to that I ran a part time route with about 50 machines. I've got just a few more months to go and everything will be paid off. Woohoo. In Ca. the state and county has to be notified via their special forms. I found a vending route contract somewhere on the web and sat down with the seller and we modified it together, rewrote it and signed it. I put down a large down payment and they carried the rest. In Ca., if the seller is okay with payments, they have to file a form with Sacramento that puts them first in line in case of bankruptcy on the buyers part. All in all it was pretty a pretty easy process. The seller rode on the route with me for a month and then did phone support for the next 6-8 months. Phone support was a life saver. The seller had the route for 27 years and had a life time of vending knowledge. Most of the equipment was pretty old, but very well maintained with plenty of spare parts and equipment. It even came with a van, a truck with a lift gate and moving equipment. Link to comment Share on other sites More sharing options...
AZVendor Posted March 3, 2014 Share Posted March 3, 2014 How do you make sure they own them? Is their word good enough? Do you need to see receipts from a previous sale? Also, what are the various things you need to do legally in order to buy a route? Does the buyer or seller form the contract? Is there a standard template in the industry? Do I need to retain an attorney? If the machines you're looking at are older machines from the 2000's or even 90's there may be no bill of sale for each machine. When I sold my business my machines were all older as I hadn't bought a new machine for 5+ years. Do a public records search for any UCC filings on this company or owner using variations of the names to see if you can find any active UCC filings on his machines. There should be a sales contract listing all of the machines by model number and serial number and location. Make it an addendum to the sales contract you or the seller provides to the transaction. Make sure all pertinent details about the sale are in the contract and if the seller states that all of the machines are free and clear and unencumbered he should state that in the contract. Once the contract signatures are notarized you then have a document that you can use as evidence in court should any question of ownership or liens come up later. Paying a lawyer to oversee the creation of the contract would be a good idea too, for your protection. Remember that even if the seller uses a contract that won't ensure you are protected. You need your attorney to review it, too. Link to comment Share on other sites More sharing options...
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