Under what condition is a delivery vehicle not required for Bimbo Foods Bakeries Distribution franchisees?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Inventory Purchases | $2,500 - $15,000 | Weekly | time in service Thermal paper as reasonably needed for printer Wireless access for Route to Market (RTM) system in sales center Support for home or store Wi-Fi access Mobile data (cellular) service for handheld Software licenses & feature development for included apps Continued updates and enhancements to apps and operating system of handheld Technical support This cost reflects the purchase, at a bona fide wholesale price, of the bakery Products for resale, which is purchased on credit. (See Items 7 and 8.). You must purchase sufficient Products from BFBD's designated |
|---|---|---|---|
| affiliates for proper and adequate distribution to your Outlets; the cost will likely vary depending upon your customers' requirements. | |||
| Long-Term Vehicle Lease (3) | $700/mo to $1,800/mo, depending on type of vehicle and options you select. | If you lease a vehicle through BUSH, B&G, or PNC, we may deduct payment for same from your weekly settlement and forward to these companies on your behalf. Otherwise, on terms agreed to between you and third- party lessor. | Optional service. Payable to BUSH, B & G, or PNC, depending on who your agreement is with. While we remit payment to BUSH, B & G, or PNC as part of the weekly settlement, we receive no portion of the payment. A Delivery vehicle is not required if you sign a Sales Growth Agreement, which is not available at all times or in all locations. However, transportation may be required to get to, from, and between your Outlets. |
Source: Item 6 — OTHER FEES (FDD pages 30–32)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, a delivery vehicle is not required if a franchisee signs a Sales Growth Agreement. However, the FDD stipulates that Sales Growth Agreements are not available at all times or in all locations. Even if a delivery vehicle is not required, franchisees may still need some form of transportation to travel to and from their designated outlets.
This condition offers a potential cost-saving opportunity for franchisees who qualify for a Sales Growth Agreement, as it eliminates the need to lease or purchase a delivery vehicle. The estimated cost of a long-term vehicle lease ranges from $700 to $1,800 per month, depending on the type of vehicle and options selected. This cost can be a significant expense for new franchisees, so avoiding it could improve their initial profitability.
However, the availability of Sales Growth Agreements is limited, and franchisees should inquire about the specific requirements and availability in their desired location. Even without a dedicated delivery vehicle, franchisees must still consider transportation costs to manage their routes effectively. It is important to note that the franchisee may still need a vehicle to transport themselves to and from their outlets.