ElkAntler Posted September 19, 2023 Share Posted September 19, 2023 Long story, but due to ill health I find myself operating a bulk candy/gumball vending business. I'm working this all out on the fly and as I go along but I'd like to make sure I am "legal". Is there a quick step-by-step list someone can help me with? I assume I need some sort of business license? Who is the best supplier to source candy/gumballs from? Better to buy online? Do most people carry insurance (not auto insurance but liability/theft insurance of some sort? Thank you and sorry for simple questions. Link to comment Share on other sites More sharing options...
gumball guy Posted September 20, 2023 Share Posted September 20, 2023 21 hours ago, ElkAntler said: Long story, but due to ill health I find myself operating a bulk candy/gumball vending business. I'm working this all out on the fly and as I go along but I'd like to make sure I am "legal". Is there a quick step-by-step list someone can help me with? I assume I need some sort of business license? Who is the best supplier to source candy/gumballs from? Better to buy online? Do most people carry insurance (not auto insurance but liability/theft insurance of some sort? Thank you and sorry for simple questions. Do you now legally own the business or are you just running it temporarily for another person? Unless the person you are taking the route over for is unable to communicate, I would see who they have been dealing with for inventory, insurance, business license, etc... . If they are unable to communicate, see if you can gain access to their paperwork as that should give you some direction as to how they have been operating the business up until now. Link to comment Share on other sites More sharing options...
ElkAntler Posted September 20, 2023 Author Share Posted September 20, 2023 It's a long and complex story however I suspect that it is going to be mine, legally, in the not too distant future. I can ask some of these questions...and have done - however I'm dealing with an elderly and unwell person and I'm not 100% sure if the information I'm told is current or was current 10 years ago if you know what I mean. I was hoping I could get a few pointers while being thrown into the deep end if possible please. I'd rather not end up making myself (personally) a larger problem down the line! Link to comment Share on other sites More sharing options...
gumball guy Posted September 20, 2023 Share Posted September 20, 2023 2 hours ago, ElkAntler said: It's a long and complex story however I suspect that it is going to be mine, legally, in the not too distant future. I can ask some of these questions...and have done - however I'm dealing with an elderly and unwell person and I'm not 100% sure if the information I'm told is current or was current 10 years ago if you know what I mean. I was hoping I could get a few pointers while being thrown into the deep end if possible please. I'd rather not end up making myself (personally) a larger problem down the line! The first thing I would suggest is to go out and verify the status of all the locations/machines on the route. If the route has been neglected for years then many of the locations may no longer exist or the machines maybe gone from the location. Furthermore, people may no longer want the machines in their businesses so if you open them up and pull the money be prepared for them to say "Just take the machine with you.". As you verify the locations you will need to note what type of machines, coin mechs (i.e. .25, .50, .75, 1.00), type of inventory is in each machine (i.e. candy, gumballs, 1 inch or 2 inch toys etc... .). This will give you an idea of exactly what types of products you will need if you decide to continue running the business. I have been doing this for 20 years and have bought my fair share of distressed routes. It can be a real nightmare to deal with especially if you have little or no experience in the business. If the route is a complete mess and in shambles, it maybe easier just to leave it alone and move on. Unfortunately this happens from time to time when route owners pass away or become incapacitated. The route locations will eventually remove the machines themselves. You could also pick up the machines and attempt to sell them or scrap them. That way you also get all of the money out of the machines. One thing you need to understand is that bulk vending is on the way out so putting a bunch of time and money into a long neglected bulk vending business these days isn't a savvy business move. That said here are some answers to your questions..... Business license requirements vary by municipality. You will most likely need to establish a legal sole proprietorship, LLC or incorporate if you decide to move forward with the business and it will need to be done before you look into business licensing and tax management. Talk to an attorney/tax professional to get specifics for your area. You can also check with your state's Secretary of State office and they can assist you on what you need to establish a business in your state. Sam's Club, A & A Global, Concord Confections are a few sources for product but you will need to first know what type of products you need and how much. One of the primary reasons bulk vending is declining is due to skyrocketing product cost. You can look at places like Candywarehouse.com, gumballs.com, or even Amazon but they are usually brutal on their pricing. I would never operate a vending business without liability insurance but in regards to your situation I wouldn't worry about that until you decide whether or not you are going to continue with the business. 1 Link to comment Share on other sites More sharing options...
ElkAntler Posted September 22, 2023 Author Share Posted September 22, 2023 On 9/20/2023 at 2:27 PM, gumball guy said: Lots of great stuff Thank you for your super helpful and lengthy reply. I now have an approximate idea of the number of machines and the locations. I haven’t had the opportunity to visit all the locations yet but the ones I have appear to be operational and in good shape. I also came across some details of at least one of the suppliers used so that is a good start. I think I am going form a LLC for the purposes of this business. I don’t want to just close the route up right now as I said I wouldn’t and the locations appear to be ok. Maybe things will change in 3 months time?! I don’t suppose you have a recommendation for liability insurance please? Link to comment Share on other sites More sharing options...
gumball guy Posted September 22, 2023 Share Posted September 22, 2023 I use Nationwide. About $400.00 annually for 2 million in coverage. I've been with them for years so there maybe other options out there. Link to comment Share on other sites More sharing options...
ElkAntler Posted September 22, 2023 Author Share Posted September 22, 2023 Thank you so much for the pointers Link to comment Share on other sites More sharing options...
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