Frequently Asked Questions About Being an Independent DSD Partner

1. What are the basics of our Independent DSD Partner distributorships?

We use a direct-store-delivery (DSD) system to get its products to market. Generally, Independent DSD Partners (IDPs) enjoy the exclusive right to distribute certain Pepperidge Farm, Incorporated and Snyder’s-Lance, Inc. products to certain retail stores within defined geographic territory boundaries, subject to the terms of the distributor agreement. IDPs earn a percentage of revenue related to the sale of or directly resell authorized products to retail customers. Unless otherwise agreed upon with CSnacks Combo, LLC, IDPs do not have the right to deliver to warehouse locations (including for e-commerce transactions), e-commerce accounts, food-service accounts, or other non-retail store locations.

2. What are the responsibilities of an 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 applicable 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 such products, including a handheld computer and any other systems as may be necessary.

3. 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 use best efforts to develop the full sales potential of the Territory.

4. How do IDPs generate income?

Generally, IDPs earn a percentage of revenue related to the sale of or directly resell applicable products to retail stores. We do 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 we make no representation that actual performance will be able to equal or improve upon the sales history. Actual results are likely to differ, and we cannot estimate the results of any particular distributorship.

5. How much does an independent distributorship cost and is there anything else that needs to be purchased to own and operate the route?

We do not set the sale price of independent distributorships. The cost of an independent distributorship is negotiated between the buyer and the seller, but the price of an independent distributorship can vary significantly, depending on location, sales volume, etc. In addition to purchasing the route, some of the other initial costs that are associated with operating an independent distributorship include:

• A smart device (tablet or phone), printer, access to licensed order management software, and special Bluetooth key costs may vary. The cost of the computer equipment required to operate the IDP distributorship depends on the source from which the computer equipment is purchased. The required software includes a weekly fee.
• Route delivery vehicle. This can be a used vehicle but must be operated in accordance with food safety standards.We do not offer or otherwise become involved in the purchase, sale or financing of the vehicle. Depending on the size or specific characteristics of a distributorship, IDPs may choose to utilize more than one vehicle.
• Insurance. IDPs must maintain certain worker’s compensation insurance per applicable state requirements, commercial general liability insurance, commercial business automobile insurance, and cargo legal liability insurance, naming CSnacks Combo, LLC as additional insured.

6. Is there any financing programs for the acquisition of an independent distributorship?

IDPs are expected to make their own financing arrangements. To facilitate financing for prospective IDPs, we have entered into arrangements with one or more third party lenders. IDPs are not obligated in any way to obtain financing from these lenders, however if the IDP chooses to utilize the Route Loan Program they will be subject to credit approval by the lender and a minimum down payment prior to closing.

7. Are there any closing costs or other fees as part of purchasing an independent distributorship?

There are no fees charged to the buyer, however a minimum down payment is required at closing if the IDP chooses to utilize the Route Loan Program.

8. Where/How do IDPs receive product?

Product is ordered through the IDP’s handheld computer/tablet and delivered, generally, to an authorized location about once per week. Depending on the location, IDPs may be responsible for the operation and associated costs of the storage unit / warehouse.

9. Is an independent distributorship a franchise?

No. For a variety of reasons, independent distributorships are not franchises, including:

• There are no royalties or franchise fees related to owning an independent distributorship.
• IDPs have only a very limited right to use Pepperidge Farm, Incorporated and Snyder’s-Lance, Inc.’s trademarks.
• We do not exercise control with respect to the operation of an IDP’s business.

10. What is the process to buy an independent distributorship?

• 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 the owners of such routes regarding a sale price.
• 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 60-90 days.
• Additional information about the process and contact information may be found at https://csnackscomboroutes.com in the View Routes for Purchase section.

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The foregoing is only a summary of frequently asked questions pertaining to owning a CSnacks Combo, LLC independent distributorship. CSnacks Combo, LLC 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 CSNACKS COMBO, LLC NOR ANY OF ITS RESPECTIVE EMPLOYEES OR REPRESENTATIVES MAKES ANY REPRESENTATIONS OR GUARANTEES WITH RESPECT TO THE SALES OR OTHER INFORMATION REGARDING THE PURCHASE OF A CSNACKS COMBO, LLC INDEPENDENT DISTRIBUTORSHIP, INCLUDING WITHOUT LIMITATION THE FAIR MARKET VALUE OF ANY EXISTING CSNACKS COMBO, LLC 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 CSNACKS COMBO, LLC IDP. ANY INVESTMENT IN SUCH DISTRIBUTION RIGHTS INVOLVES POTENTIAL 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.