Mobile Tool Franchise Guide
January 3, 2012
Mobile Tool Franchise Issues & Index Read more
Mobile Tool Franchise Guide: Franchise Resales
January 2, 2012
Franchise owners of mobile tool franchises (such as Snap-on Tools, Matco Tools, MAC Tools, & Cornwell Tools) complain that their franchises have little-to-no resale value.
[This post is a work in progress. If you have input on the resaleability of mobile tool franchises, please share a comment below.]
An analysis of the the Matco Tools Franchise Disclosure Document by law firm Marks & Klein* (MATCO TOOLS Franchise Report Alleges Distributor Churning) reported:
“During the three year period from 1/1/08 to 12/31/10, seven hundred fifteen (715) Distributors, forty nine percent (49%) of the total number of MATCO Tools Distributorships open at any time during the period, left the MATCO system.
“Of that 715, only fifty (50) transferred their MATCO Tools business to third party franchisees…
“If a MATCO Tools distributor desired to exit the system during this three year period, and hoped to sell its business through a MATCO approved transfer, that franchisee had less than a seven percent (7%) chance of success. Statistically speaking, such a low success rate indicates that the MATCO Tools businesses run by distributors who were leaving the MATCO system were so unprofitable as to be unmarketable.”
“Everything Snap-on does is contrary to us gaining wealth” – Franchisee Jim Lager
On our post SNAP-ON TOOLS Franchise Complaints, Snap-on Tools franchise owner Jim Lager alleges his franchisor intentionally interferes with its franchisees’ efforts to sell their franchises:
i am trying to sell off franchises and there is no value what so ever in my business. Snap-on does everything they can to inhibit the sale diminish the value…
I am at least a little pissed off at Snap-on because i am trying to sell one of my franchises to one of my dealers. Believe me there is NO BLUE SKY in your business/job. Let me tell you why. snap-on has something called a schedule 1. This lists everything you as a selling dealer has to sale, Inventory, accounts recievable, truck, used tool, discontinued tools, computer, and other things you might sell a dealer. The schedule is bullshit because Snap-on credit will only finance 2 things on that schedule. Inventory and accounts recievables.
The kicker is the maximum accounts recievable or R/A they finance is $55,000.00. So if we do a good job and put a bunch of money on the street, turn it well, Snap-on rewards us by saying they wont finance it when we go to sell it. by the way you can’t go to a bank for financing because if you do, Snap-on tools, not Snap-on credit puts an all encompassing 1st lien against your business. NO BANK WILL TOUCH THIS AND TAKE A 2ND POSITION. Snap-on does this to keep routes cheap and bring in young naive guys with little education to run volume. Snap-on protects themselves. Everything Snap-on does is contrary to us gaining wealth. their training and even volume discount is designed for us to sell high volume at low profit margins.
Understand all my routes do between $10,000 and $14,000 a week. I am very succesful and always have been. snap-on only looks out for us when we force them to. I was a field manager in the 90′s. I will tell you you will never hear a discussion in Snap-on asking themselves what Snap-on did wrong when a dealer is failing. Here is how the discussion always goes. “What can we do to get rid of this guy and put another one in his place.”
…Snap-on loves fresh meat.
* Marks & Klein is a law firm with current litigation pending against Matco Tools & MAC Tools, and past litigation against Snap-on Tools on behalf of franchisees.
ARE YOU FAMILIAR WITH THE MOBILE TOOL FRANCHISES? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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SNAP-ON TOOLS Franchise Complaints
January 2, 2012
The Snap-on Tools mobile tools franchise has been plagued with franchisee lawsuits.
The 2011 Snap-on Tools FDD (SNAP-ON TOOLS Franchise Disclosure Document (FDD)) lists nearly 40 lawsuits by franchisees in the last ten years, including a class action lawsuit (settled in 2006) that cost Snap-on Tools $38 million in settlement fees, attorney fees and other costs.
According to the Snap-on FDD “This complaint set forth various alleged deceptive practices, sought to represent a class for current and former franchisees and independent dealers, sought injunctive relief, and contained counts for alleged violation of RICO, state statutes prohibiting deceptive trade practices, deceptive franchise practices and consumer fraud, common law fraud, breach of contract, breach of fiduciary duty and breach of implied covenant of good faith and fair dealing.”
According to some, the franchise litigation forced Snap-on to address and fix the problems with its franchises, and become a better company.
However, others contend that major problems with the viability of the franchise opportunity and the franchisor’s attitude toward its franchise owners still persist.
jim lager writes:
They(Snap-on) does take advantage however of new naive dealers if allowed…. Snap-on loves fresh meat.
I have 5 [Snap-on] franchises i am trying to sell off franchises and there is no value what so ever in my business. Snap-on does everything they can to inhibit the sale diminish the value… I don’t know many 13 year veterans in Snap-on running great numbers.
Judge writes:
they have the power to put you in business and can take you out. I been a tool man for some time now. When I talk to old timers that been in 25 years or more they all tell me the same thing. The company lost touch with what we are doing out here. It’s all about numbers and that’s it… I think these tool companies got too comfortable letting other people like ourselves do all the hard work and they just collect money.
Are you a Snap-on Tools franchise owner or former franchise owner? Do you have franchise complaints, or advice for prospective Snap-on dealers you can share?
Or do you think the Snap-on Tools franchise is a great opportunity with a dedicated franchisor?
Please share a comment below, positive or negative.
ARE YOU FAMILIAR WITH THE SNAP-ON TOOLS FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.
More on the Snap-on Tools franchise:
SNAP-ON TOOLS Franchise Disclosure Document (FDD) January 1, 2012
Mobile Tool Franchise Guide: List of Calls (LOC) December 30, 2011
MATCO TOOLS: Lady Matco Speaks Out (Video)
January 1, 2012
Matco Tools distributor Debbie Solko (aka Lady Matco) is mad as hell and is not going to take it anymore.
Ms. Solko believes that the sales pitch that led her to invest her time, energy and money in a Matco Tools franchise was misleading and deceptive.
She believes that the promise of 325 potential qualified customers was inflated.
She believes that promises of “world class support” were never delivered upon.
She once perceived Matco as a company that viewed its distributors as part of the “Matco family,” but now believes that the company benefits from a practice called “churning,” where existing franchisees are allowed to fail so their franchises can be profitably resold to new franchise prospects on an ongoing basis.
Lady Matco has taken to the Internet to warn prospective Matco Tool franchise owners of the problems she has encountered.
Lady Matco is telling her story on the Lady Matco website and her Matco Distributor Facebook page.
Lady Matco is a regular commenter on the 2000+ discussion at MATCO TOOLS Franchise Complaints.
And now Lady Matco has put together a YouTube video to warn prospective Matco franchise owners.
Read our posts and the comments under each, and decide for yourself.
Matco Tools Franchise Posts & Discussions
MATCO TOOLS Franchise Complaints June 8, 2011 (1000+ comments)
MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited)
MATCO TOOLS Distributor Franchise December 7, 2011 (Overview with links)
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29, 2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November 22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15, 2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
Other Mobile Tool Franchise Posts:
MAC TOOLS Guilty of Franchise Fraud? November 7, 2011
CORNWELL TOOLS Franchise Scam or No Scam? November 17, 2011
ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE DISTRIBUTOR PROGRAM? WHAT DO YOU THINK? SHARE A COMMENT BELOW!
To contact the author and site admin, email UnhappyFranchisee[at]gmail.com
SNAP-ON TOOLS Franchise Disclosure Document (FDD)
January 1, 2012
SNAP-ON TOOLS Franchise Disclosure Document (FDD) provides prospective franchise owners with information (required by the FTC) to help them make an informed investment decision regarding the Snap-On Tools franchise opportunity.
The full 2011 Snap On Tools Franchise disclosure document (FDD) registered with the state of Minnesota is available, free of charge, below.
According to the Snap-on website:
You may know that Snap-on as the #1 professional tool brand in the world. What you may not know is that Snap-on is also a great business opportunity.
A Snap-on franchise is a mobile tool store you own, selling the #1 tool brand in the world directly to professionals on your protected list of calls. It’s a proven business model we’ve honed for more than 90 years and we are always looking for people as good as our tools.
Here are just a few of the benefits of owning a Snap-on Franchise:
- More than 4,200 franchises worldwide
- Most in-demand product in the category
- Financing available through Snap-on Credit
- Protected list of calls
- No real estate investment
- Exceptional training and support
- Proven franchise model
According to the Snap-on Tools FDD:
Snap-on Tools Company LLC (“Snap-on”) offers a license to operate a franchised retail mobile
store selling high quality repair and diagnostic tools and equipment. Snap-on manufactures
and/or distributes these tools and equipment to professional mechanics and other tool users in
the automotive aftermarket and related businesses throughout the United States.
The total investment necessary to begin operation of a Snap-on Standard Franchise will range
from $150,614 to $289,080 (See Item 7). This includes $82,350 to $148,770 that must be paid to
Snap-on or an affiliate (See Item 5).
The total investment necessary to begin operation of a Snap-on Gateway Franchise will range
from $17,925 to $83,941 (See Item 7). This includes $5,480 to $58,000 that must be paid to
Snap-on or its affiliates (See Item 5).
To read or save the Snap-on FDD, Click here:
Snap-on Tools Franchise Disclosure Document (FDD)
ARE YOU FAMILIAR WITH THE SNAP-ON TOOLS FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.
UNHAPPY FRANCHISEE 25 – December 2011
January 1, 2012
UnhappyFranchisee.com has released the Unhappy Franchisee 25 for December, 2011.
The Unhappy Franchisee 25 ranks which franchises drew the most traffic and generated the most comments on UnhappyFranchisee.com.
Matco Tools, Liberty Tax, Amway, Curves & Quiznos attracted the most readers on UnhappyFranchisee.com in December, 2011.
Jan-Pro, Little Caesars, Kumon, College Pro Painters also earned top ten spots in terms of readership.
Matco Tools generated the most comments in December, and was the first franchise to break the 2000-comment mark.
Liberty Tax continues to generate a strong flow of comments, as does Amway, Kumon, Revive Energy Mints, Curves, Bizzibiz, Stratus Building Solutions, System4 Cleaning and the MAC Tools franchise.
UNHAPPY FRANCHISEE 25 – December 2011
Click on company name for franchise-related posts.
| Ranking | By Traffic | By Comments |
| 1. | Matco Tools | Matco Tools |
| 2. | Liberty Tax Service | Liberty Tax Service |
| 3. | Amway | Amway |
| 4. | Curves | Kumon |
| 5. | Quiznos | Revive Energy Mints |
| 6. | Jan-Pro | Curves |
| 7. | Little Caesars | Bizzibiz |
| 8. | Kumon | Stratus Building Solutions |
| 9. | College Pro Painters | System4 Cleaning |
| 10. | Vanguard Cleaning Systems | MAC Tools |
| 11. | Cornwell Tools | All Tune & Lube |
| 12. | Jani-King | PosiGrip |
| 13. | Sport Clips | College Pro Painters |
| 14. | Coverall | Cornwell Tools |
| 15. | DVDNow | The UPS Store |
| 16. | The UPS Store | Jan-Pro |
| 17. | Bizzibiz | Play N Trade |
| 18. | Cleannet USA | h.u.m.a.n. Vending |
| 19. | Stratus Building Solutions | Pet Corner International |
| 20. | Play N Trade | Alco-Buddy |
| 21. | Cold Stone Creamery | It’s Just Lunch |
| 22. | MAC Tools | Scentsy |
| 23. | Subway | Triton Stone |
| 24. | PosiGrip | OxyMagic |
| 25. | Cereality | Jackson-Hewitt |
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