What Is My Delivery Route or Service Route Worth?

Route businesses — bread delivery, snack distribution, linen service, vending routes, and other recurring delivery models — are popular small business purchases because of their simplicity and recurring nature. Valuations depend on the strength of the territory and contract terms.

Typical Valuation Ranges

Most delivery and service routes sell for 1.5x to 2.5x SDE.

Factors that push toward the higher end: Exclusive territory agreement with the brand or supplier, long-term contract (5+ years), dense delivery area with efficient routing, growing customer count, diversified customer base, modern delivery vehicle included.

Factors that push toward the lower end: No exclusivity or territory protection, short-term or cancellable agreement, sparse route with high drive time, declining customer count, owner runs the route alone.

Key Value Drivers

Territory rights — exclusive territory agreements from the supplier or franchisor are the most valuable asset. Without exclusivity, another operator could compete in your area.

Contract terms — the length, renewal provisions, and termination clauses of your distributor or franchise agreement directly impact value. A 10-year agreement is worth significantly more than a 2-year agreement.

Route density — more customers per mile means more efficient operations and better margins.

How to Increase Your Value

1. Secure long-term territory rights. Negotiate exclusive, multi-year agreements with your supplier or franchisor.
2. Grow your customer base. Add stops in your existing territory to improve route density.
3. Document your operations. Route schedules, customer lists, delivery logs, and equipment maintenance records.
4. Maintain your vehicle. A well-maintained, clean delivery vehicle is part of the business value.
5. Diversify products. Adding complementary products from different suppliers increases per-stop revenue.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.