



Owning A Howe Candy Distributorship
Owning a Howe Candy Distributorship can be a personally and financially rewarding experience.
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Frequently Asked Questions About Being An Independent DSD Partner
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1. What are the basics of Howe Candy Independent DSD Partner distributorships?
Since it began in 1927, Howe started as a coffee roaster, added nut roasting in the mid-1940s and then added candy in the mid-1980s. Howe Candy currently has a network of over 100 Independent DSD Partners (IDPs) operating over 100 distribution routes for the distribution of candy, coffee and nuts throughout the Eastern seaboard to the Midwest of the United States. Generally, IDPs enjoy the exclusive right to distribute Howe products to retail stores within defined geographic territory boundaries, subject to the terms of the consignment agreement. IDPs earn commissions related to the sale of Howe branded products to retail customers. Unless otherwise agreed upon with Howe, IDPs do not have the right to deliver to warehouse locations (including for e-commerce transactions), e-commerce accounts, and food-service accounts.
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2. Are there different types of Howe Candy independent distributorships?
There is only one type of Howe Candy independent distributorships. IDPs have the right to distribute candy, nuts and coffee. Such products are generally distributed to traditional grocery stores and other retail stores.
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3. What are the responsibilities of a Howe Candy IDP?
While the day-to-day responsibilities of IDPs may vary, generally speaking, IDPs sell, distribute, merchandise, and provide service to retail customers in a defined geographic territory to realize the full sales potential of Howe products by fully servicing the needs of retail customers. IDPs are required to provide adequate equipment and facilities for the receipt, handling, storage, and delivery of Howe products. Howe provides handheld computers, at a weekly fee, and other systems as may be necessary.
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4. What hours and days of the week do IDPs work?
IDPs determine their own hours and who services the route. Keep in mind that retail customers may have set receiving hours. In addition, IDPs have certain contractual obligations to provide adequate service to retail customers and actively solicit all retail stores whose accounts can be profitably handled.
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5. How do IDPs generate income from the sale of Howe branded products?
Generally, IDPs earn commissions related to the sale of Howe branded products to retail stores. Howe does not make any representations about a distributorship's past or future financial performance. Interested parties must exercise appropriate due diligence in obtaining verification of these figures from the prior owner(s). Past performance cannot guarantee future results, and Howe makes no representation that actual performance will be able to equal or improve upon the sales history. Actual results are likely to differ, and Howe cannot estimate the results of any particular distributorship.
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6. How much does a Howe independent distributorship cost and is there anything else that needs to be purchased to own and operate the route?
Howe does not set the sale price of independent distributorships that are being sold by a current IDP. That cost is negotiated between the buyer and the seller, but the price can vary significantly, depending on location, sales volume, etc. Howe does reserve the right to sell an established route, should the current IDP have no interest in selling. Further, Howe also reserves the right to sell an unestablished route, where there is presently no IDP. In addition to purchasing the route, some of the other initial costs that are associated with operating an independent distributorship include:
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A special handheld computer/tablet and printer. The weekly cost of the handheld being deducted from the weekly commission check.
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Route delivery vehicle. This can be a used vehicle but must be operated in accordance with food safety standards. Howe does not offer or otherwise become involved in the purchase, sale or financing of the vehicle. Depending on the size or specific characteristics of an independent distributorship, IDPs may choose to utilize more than one vehicle.
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Insurance. IDPs must maintain adequate public liability, property damage and, where appropriate, worker's compensation insurance, to protect Howe against any and all claims of personal injury, death or property damage. In addition, IDPs must maintain adequate auto insurance coverage on all vehicles used in the delivery of Howe branded products.
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Warehousing: IDPs must obtain an adequate storage facility that can accommodate a 53' tractor trailer for the delivery of incoming product for distribution to the accounts being serviced. It is up to the IDP to select and maintain a facility of adequate size, based on the needs of the territory and accounts being serviced.
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7. Does Howe offer any financing programs for the acquisition of an independent distributorship?
If the IDP is purchasing an independent distributorship directly from a current IDP, then they are expected to make their own financing arrangements. If the IDP is purchasing directly from Howe, Howe will negotiate a weekly deduction from the IDPs commission check that will be applied to the purchase of the territory.
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8. Are there any closing costs or other fees as part of purchasing an independent distributorship?
Howe reserves the right to charge up to 5% of the sale of an established route to the seller once a purchase price is set. The seller must disclose the purchase price to Howe in order for this charge to be figured.
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9. Where/How do IDPs receive product?
Product is ordered through the IDP's handheld computer/tablet and delivered directly to their warehouse/storage facility. Howe sets specific order days for IDPs for when orders must be placed into the system.
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10. Is a Howe independent distributorship a franchise?
No. For a variety of reasons, Howe independent distributorships are not franchises, including:
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There are no royalties or franchise fees related to owning a Howe independent distributorship.
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IDPs have only a very limited right to use Howe's trademarks.
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Howe does not exercise control with respect to the operation of an IDPs business.
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11. What is the process to buy an independent distributorship?
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We encourage interested parties to conduct due diligence to research and understand the territory and sales volume of routes that are for sale and discuss/negotiate directly with owners of such routes regarding a sale price.
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The time period for the entire process may vary depending on the route transaction taking place and any number of other factors, however, generally can take 30-60 days.
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Additional information about the route process and contact information may be found at www.howeroutes.com in the View Howe Candy Routes Available section.
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The foregoing is only a summary of frequently asked questions pertaining to owning a Howe Candy independent distributorship. Howe does not make any representations about an independent distributorship's future financial performance or the past financial performance of company-owned or IDP-owned independent distributorships. NEITHER HOWE NOR ANY OF ITS RESPECTIVE EMPLOYEES OR REPRESENTATIVES MAKES ANY REPRESENTATIONS OR GUARATNEES WITH RESPECT TO THE SALES OR OTHER INFORMATION REGARDING THE PURCHASE OF A HOWE CANDY INDEPENDENT DISTRIBUTORSHIP, INCLUDING WITHOUT LIMITATION THE FAIR MARKET VALUE OF ANY EXISITING HOWE CANDY INDEPENDENT DISTRIBUTORSHIP OR WITH RESPECT TO THE TAX, FINANCIAL, OPERATIONAL OR LEGAL OUTCOMES OF ANY TRANSACTIONS OR ARRANGEMENTS TO ACQUIRE ANY SUCH INDEPENDENT DISTRIBUTORSHIP FROM ANY CURRENT HOWE CANDY IDP. ANY INVESTMENT IN SUCH DISTRIBUTION RIGHTS INVOLVES POTENIAL RISKS. EACH PROSPECTIVE PURCHASER SHOULD CONSULT WITH HIS, HER OR ITS OWN ADVISORS AS TO LEGAL, TAX, BUSINESS, FINANCIAL AND RELATED ASPECTS OF THE PURCHASE OF SUCH DISTRIBUTION RIGHTS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURN.
