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Route Buying Process...


dsimms

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How do you guys go about buying a route?

I am sure you want to go to the locations and inspect them, and such...

how do you know you are not be played...he could be selling

routes to multiple people, and so on...

Do you just pay cash, and its a verbal thing, do you require

paperwork showing all the locations he is selling, etc..

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all depends on the route, I have bought some small simple ones with just cash and a hand shake but then there are other ones that I have inspected with the seller for about 2 months before the sale, and I required them to sign contracts and check payment only. A lot of this will change once you are a legit business and there will be advantages to putting everything on the books.

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all depends on the route, I have bought some small simple ones with just cash and a hand shake but then there are other ones that I have inspected with the seller for about 2 months before the sale, and I required them to sign contracts and check payment only. A lot of this will change once you are a legit business and there will be advantages to putting everything on the books.

There is a person in my area selling 14 machine locations, and 7 machines not on location for $1000

I have already emailed him 3 times..maybe he already sold it, not sure, if he did, could at least let me know.

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I believe that a contract written down on paper is a must whether you are buying or selling.  If something were to happen or is misunderstood in conversation just look at the contract. 

As far as buying a route I would want to service it with the current vendor to see the condition, type of machines and locations.

Be sure that you get all keys to the machines and keep a close eye on gross #'s compared to the previous owners.  You could possibly include a contingency in the contract if the numbers are not accurate. 

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I believe that a contract written down on paper is a must whether you are buying or selling.  If something were to happen or is misunderstood in conversation just look at the contract. 

As far as buying a route I would want to service it with the current vendor to see the condition, type of machines and locations.

Be sure that you get all keys to the machines and keep a close eye on gross #'s compared to the previous owners.  You could possibly include a contingency in the contract if the numbers are not accurate. 

Thank-You

maybe he will get back too me, or not...maybe another opportunity will come up...

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i have acquired 2 additional routes this way. I have had a written contract both times. I find this very necessary, as it spells out exactly what you are receiving, and for what price. this covers you in the instance that you might need some sort of legal litigation. if you want a template for a purchase agreement, PM me. I have a couple agreements, one for a cash purchase, and another for a contract sale. 

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i have acquired 2 additional routes this way. I have had a written contract both times. I find this very necessary, as it spells out exactly what you are receiving, and for what price. this covers you in the instance that you might need some sort of legal litigation. if you want a template for a purchase agreement, PM me. I have a couple agreements, one for a cash purchase, and another for a contract sale.   

that is sound advice, get everything on paper...

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Agreed and Agreed.  Over the years our operations company purchased lots of routes...ALWAYS on contract.  Under most circumstances a fancy agreement is not necessary.  A simple document covers most of it.  (detailing exactly what you are buying...where it's located...from whom...on what date...and financial details).  If you want it to be comlicated, that's easy too...just add in contingencies, rights of recission, guarantees, equipment conditions and such and you are well on your way.  Either way, it's good to cross some t's and dot some i's just so everyone is on the same page.  One thing I recommend leaving out of the agreement...financial guarantees and/or financial expectations.  If you are a seller making the guarantees, you are a fool.  If you are a buyer asking for them you are close.  Obviously, if a seller is willing to guarantee sales TAKE IT, but go in knowing that it is a ridiculous notion.  A route is ONLY as good as your operations department did their job TODAY.  With proper merchandising, machine placement, site acquisition, competitive planning, product rotation, service, maintenance, care and upkeep your company can make a route soar.  Likewise, your company can destroy a route with just a little neglect or poor performance in any one of those areas.  Past financials mean very little!  Depend more on your history and your ability to generate sales with the equipment, locations and good will being sold...IMHO

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Hey man,can u tell me which insurance company u use for your bulk vending? I can't use state farm (they dont' do restaurants, bowling alleys) So can u help me out? I really need it ASAP! I got this one location to try me out but they want me to have insurance. thanks dude! help me out bro ,please!

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Hey man,can u tell me which insurance company u use for your bulk vending? I can't use state farm (they dont' do restaurants, bowling alleys) So can u help me out? I really need it ASAP! I got this one location to try me out but they want me to have insurance. thanks dude! help me out bro ,please!

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