Here's the situation:
My roommate is in the end-stages of buying a pepperidge farm cookie/snack route. The route is in a booming area but is in horrible shape and the stores were getting awful service from the previous owner.
Now my roomie has been in this business for 15yrs and has had his eye on this route for a while. Obviously he's making a smart decision to buy this route and build a whole bunch of equity into it by increasing sales.
Here's where I come in, a few months ago he approached me and offered me a job as a delivery driver/1099 employee making 7% of what I sell to start and then 8% after he fully acquires the route in a few months. As a 1099 employee I would have to also pay for gas for the delivery van and a $100 "lease" payment to operate the van every month.
Right now the route is doing $4-5k a week in the condition it is in. He strongly believes there is the potential to at least double the sales and get it up to $8-10k/wk. This will take time though. Job is described as being your own boss, but early mornings (4am) and until the work is done. 8-12hr+ days.
I've done a little bit of research, but could only find bits and pieces. So far, it seems like these routes are a lot of work. I couldn't find any information on pay for delivery drivers as everything I found described the owner as also being the operator (ie, person who owned the route would also deliver and work the product). I also found out that Pepperidge Farm pays 20% to the person who owns the route.
Essentially I would be doing all of the hard work, getting up at 4am, delivering to stores, stocking the shelves, and then pulling orders for the next day.
My question is, is 8% commission a fair cut? Or should I try to go the route of a W-2 employee and try and get an hourly wage?
If anyone has any experience or insight to offer it would be greatly appreciated.