MATCO TOOLS: Unhappy Franchisee Launches RoboCall Campaign

Martin Luther King said “Our lives begin to end the day we become silent about things that matter.”

Unhappy Matco Tools franchisee Debbie Solko honored Reverend King’s birthday yesterday by letting freedom (and hundreds of telephones) ring.

Ms. Solko launched the first in a campaign of automated phone calls  promoting awareness and participation of her nascent Matco Tools Distributor’s Association to current and former Matco Tools franchise owners.

Franchisee Protests Go Robo

The Sunday evening “robo-call” was the latest in a multi-prong, grassroots informational campaign by Ms. Solko (aka Lady Matco) and a vocal group of current and former Matco franchisees who complain that Matco Tools uses predatory and fraudulent business practices to recruit trusting franchisees, provide them with an inadequate customer base, and force them into make excessive inventory purchases they neither need nor can afford.

Franchisees complain that Matco Tools then terminates the struggling franchise owner, then resells the franchise to start the cycle all over again.  (See MATCO TOOLS Franchise Complaints)

Debbie “Lady Matco” Solko’s message promotes several ways franchisees can take action, from learning more (by visiting UnhappyFranchisee.com), to joining the Matco Tools Franchisee Association (at LadyMatco.com) to attending their rally in Las Vegas at the end of February.

In the message, franchisee Solko states:

Stand by for a special announcement concerning Matco Tools.

For too long, Matco has unfairly treated its distributors.  But with the formation of the Matco Tools Franchisee Association, all that is changing.

Please log on to www.LadyMatco.com and join.  Simply enter your confidential contact information to receive regular updates and newsletters via email.

Learn about the latest lawsuits filed on your behalf at www.UnhappyFranchisee.com.

Join us in Las Vegas to protest Tool Expo and all the scams Matco uses to get you to buy more tools than you need or your cash flow can afford.

This is the year to get rid of the threat of termination based upon the use of the illegal National Purchase Average.

It’s also the year we make Matco live up to all of their contractual obligations, including giving us 325 tool-buying customers.

We’ve already had an effect on the recruiting efforts.  Just Google “Matco” and see the impact for yourself.

We have everything to gain and nothing to lose.

From Lady Matco and the entire Matco Franchisee Association Team, see you in Vegas!

Click here LISTEN to the Matco Franchisee Association Automated Message.

Matco Tools Franchise Posts & Discussions

MATCO TOOLS Franchise Complaints  June 8, 2011 (3000+ comments)

MATCO TOOLS: Franchisee Alleges Franchise Fraud (Video)  January 4, 2012

MATCO TOOLS: Lady Matco Speaks Out (Video)  January 1, 2012

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

 

ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW!

To contact the author and site admin, email UnhappyFranchisee[at]gmail.com

 

MATCO TOOLS Franchise Video Battle [UPDATED]

The MATCO TOOLS Franchise Information Video is narrated by Senior Vice President of Sales Tim Gilmore, and posted for public viewing by the company on YouTube.

It begins:  “Hi. My name is Tim Gilmore, Vice President of Sales for Matco Tools in Stow, Ohio.

“Having started as a Matco Tools distributor over 20 years ago, I’m in a unique position to talk to you about an opportunity to become part of the Matco Tools franchise team.

“I want to give you a sense of who we are at Matco and a brief history of our unique business model…”

Matco Franchise Video Comes Under Fire

The original franchise sales video we posted here (and that had been promoted by Matco Tools on YouTube.com for over a year), came under fire by Matco franchise owners who claimed that it contained fraudulent claims by now-President Tim Gilmore about the success rates of franchises vs. independent businesses.

In the original video, Matco’s Tim Gilmore states that a “recent study” by the U.S. Department of Commerce proves that 91% of all franchises are successful.

Not only does that study not exist, claim unhappy franchisees, but Matco’s own SBA loan default rate is 37%.

Matco Tools franchisee Debbie Solko posted an angry response to Tim Gilmore’s claims in a homemade video (“Gilmore Lies”) she posted to YouTube.

Franchisee Debbie Solko Attacks Matco Tools Sales Claims as Lies

 

Within days of franchisee comments about the video on UnhappyFranchisee.com and an angry video posted on YouTube, Matco Tools took their franchise sales video offline.

Matco Tools Removes The Video from YouTube

 

Matco Tools Posts an Edited Version with Success Statistics Removed

A few days later, the video was replaced with a version that had the controversial statistics crudely edited out.

Watch the REVISED Matco Tools Franchise Information Video below:

 

UnhappyFranchisee.com has been host to a heated discussions and numerous complaints by current and former Matco Tools franchise owners who feel that Matco represents the nature and risk level of its franchise opportunity.

What do you think?  Does Mr. Gilmore provide a factual and accurate picture of the Matco Tools franchise program and opportunity?

Matco Tools Franchise Posts & Discussions

MATCO TOOLS Franchise Complaints  June 8, 2011 (3000+ comments)

MATCO TOOLS: Franchisee Alleges Franchise Fraud (Video)  January 4, 2012

MATCO TOOLS: Lady Matco Speaks Out (Video)  January 1, 2012

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

 

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

 

Mobile Tool Franchise Guide

Mobile Tool Franchise Guide Read more

Mobile Tool Franchise Guide: Franchise Resales

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.

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SNAP-ON TOOLS Franchise Complaints

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)

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!

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SNAP-ON TOOLS Franchise Disclosure Document (FDD)

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)

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Mobile Tool Franchise Guide: List of Calls (LOC)

Mobile Tool franchises typically provide franchisees with a “List of Calls.”

[Note:  This page is a work in progress.  Please feel free to suggest additions/corrections below.]

Matco Tools franchise FAQ states:  “Matco Tools gives new franchise owners a “List of Calls,” which contains at least 325 potential customer names and contact information. Each territory is identified by the District Business Manager through surveys and customer interviews. This helps eliminate time-consuming cold calls, while increasing productivity and sales… Each Matco Tools Franchise has their own territory and “List of Calls,” so you never have to worry about overlapping or competing with other franchise owners.”

Snap-on franchise website states:  “The very first day you start your new business, you will have an established list of calls with plenty of professional tool users within it. The list of calls each franchisee is assigned is an established, protected list that the franchisee visits each week. A solid foundation of existing and potential customers means you don’t have to wait for customers to come to you; they are expecting you to call on them.”

Mac Tools states:  “One of the best things about Mac Tools is that franchisees are given a ‘List of Calls’ containing at least 325 potential customer names and contact information. Each territory is identified by the Business Development Manager through surveys and customer interviews. This helps eliminate time-consuming cold calls, while increasing productivity and sales.”

Cornwell Tools website doesn’t mention a LOC, but states:  “…you will receive an area of responsibility with achievable sales potential that correlates to success… Geographic routes are assigned and surveyed by your District Manager for solid potential for new and repeat sales… Daily computerized printouts of customers at specific locations, their buying history, their potential needs, and their outstanding balances due are generated by special software available for Cornwell Dealers from an outside vendor.”

Here are some of the complaints alleged by Matco distributors and ex-distributors related to franchisees’ List of Calls (LOC).  The allegations are not necessarily true, but worthy of investigation for prospective franchisees:

- Some List of Calls do not provide enough sales potential for dbrs to be successful or even sustain the minimum purchase requirement

- Some LOCs contain outdated, inflated customer counts, closed shops & shops counted multiple times

- Some LOCs contain high percentages of lower-potential customers (lube shops, road techs, tire techs, older techs, students who can buy through corporate program, etc.)

- The number of potential customers in a LOC (325) is only guaranteed at signing.  That number will dwindle via attrition (shops closing, downsizing, etc.) and Matco is under no obligation to replace them.

- Some LOCs are geographically dispersed with unmanageable driving time and fuel costs.

- Distributors are forbidden to call on or sell to customers not on their LOC, even if customer requests them or is not being serviced

- Preferential treatment given to some distributors who are given leeway in calling on shops not on their LOC, others aren’t.

- Some claim Matco often prefers to put new or available customers on a LOC they can sell to a new franchisee rather than an existing distributor even if it is on their route or they are struggling

- Successful distributors had shops removed from their LOC to give to others, then were terminated when their sales declined below the minimum.

UnhappyFranchisee.com commenters provide this information and advice regarding Mobile Tool Franchise List of Calls (LOC) (If you have comments or corrections, leave them below):

Former Distr wrote:

Matco places emphasis on the List of Calls of at least 325 potential customers. One thing that may not be discussed or considered is ‘Quality’ of that list.

I have many customers that are in their 50′s and 60′s and their tool buying days are coming to a close. On the other end how many on the list are tire techs or lube techs that may never progress in the business?

Be aware of your potential customer base and their tool purchasing power, their income level, their desire to be a automotive or truck technician, many just need a job and have no desire to pursue a career in the industry. Others are truly pursuing a career.

Economic conditions vary across the country. Not sure how you can investigate it but are your customers credit worthy?

Analyze the shop on your list of calls in which these people work.

Is it just a small mom and pop shop, minimum wage/no benefits shop with a high turnover, or is it a High end progressive business, focused on quality, education and providing for future growth for their employees. These facts will help determine the quality and stability of your potential customer.

Be honest with yourself, out of the 325 potential customers, how many can afford to pay you to the terms necessary for you to survive the business. You need quality businesses with a low turnover rate.

Tommy Cheung wrote:

Signs to look out for:

-  overinflated head count, go to the shops listed and count the techs for yourself, do not include road techs that are never there, for example.

-  ask when you are given a shop in between distributors, and neither want goes to that shop, ask why?

-  check to see if you are going all over town, because the d.m. will try to find failed shops , just for headcount.

-  the d.m dosen’t visit every shop when doing a head count, some he will call and some he just copies from previous records.

Todd Allen Peterson:

Your Head Count will have close to the min. of 325 customers on your “List of Calls” Matco knows this is a low number because they want you to go out and establish more customers so they can start another guy on a route when they take them away from you. 325 customers in a none established route is a joke. I promise you will not be in the top of Matco Distributors unless you have around 500 min. to call on because the top guys every year have that many. If they say they only have 350 on their list of calls they are paper trailing some of their other accounts…

 

richard on November 27th, 2011 8:28 pm wrote:

i have seen…  other distributors were allowed to have customers, big spenders, in my area but we were told that we had an assigned area but i was told that we didnt have specific ares just a list of calls but i couldnt go in another distributors area to solicit from someone that he did not go to… there is too much greed and corruption going on here to even imagine for most people to comprehend… i have reported other distrubutors selling out from under me but it was okay because they were one of the good ol boys. you complain .they tell you to grow up. you try to play the way they play and its against the rules. its all bs…

 

Debbie*Lady Matco on November 30th, 2011 5:25 pm wrote:

Matco promised 325 potential customers.  NOT delivered – my List of Calls – is supposed to be certified mechanics that must purchase tools to do their jobs.  MY list is HIGHLY inflated and I have IN WRITING the proof to back it

guest2 on December 1st, 2011 2:18 am wrote:

I… drove my list of calls and reviewed all documents before signing and knew what I was getting onto. You still have to treat this as YOUR business and those distributors that do that do fine.

Former Distr on December 7th, 2011 10:17 am wrote:

I have my list of calls in front of me, the one that Matco will probably give to any prospective franchisee that is interested in my old route. The one that I provided to my Lawyer.

How can I service 80% of my route when

-3 shops, totaling 47 prospective customers are listed THREE times

-6 shops closed totaling 18 prospective customers

-employee counts are off by more than 20 people

- 6 shops were given to another distributor to call on – 26 prospective customers

PROSPECTIVE FRANCHISEE’s – DO NOT Trust the ‘List of Calls’. I don’t remember how much time you are given the list in advance of signing papers, but VISIT EACH AND EVERY SHOP ON THAT LIST PRIOR TO SIGNING!

In addition to the problems above, I had 3 shops on one road that REFUSED to allow Matco Tools in because of the previous Distributor.

Make sure you know how many in each shop actually buy tools. There is a difference between a ‘mechanic’ and a ‘tire tech’. Check for the number of ‘students’ working, they will not buy from you, they will buy through the Matco Tech Ed Program, that goes for Instructors too, I have three of those in my area, they also buy direct from the Tech Ed Program.

Relentless on December 8th, 2011 10:45 am

Wow! These statements imply that we have territories with our “List of Calls”. So we don’t have to Overlap. Very Interesting. Kind of implies you can call on shops as long as their in your territory.

Why would Matco tell you this to get you to sign and go to training, then when your successful come to you and make you give up the shops you established with your DM. My RM told me they were unsecured and I didn’t have a territory I had a “List of Calls” and if I didn’t comply “Yes” I could be terminated.

By the way this Distributors route was laid right over the top of me since I had established the shops and not gone off my route. Kind of contradicts the above statement. Don’t you think?

Former Distr on December 14th, 2011 11:47 am

The whole basis of your potential business is that List of Calls, and they neglect to even know if it is valid. I have written proof that it is a ‘fabricated’ list, and that no one ever personally visited the ‘calls’ to verify they were in fact even a business at that location.  This is fraud that goes all the way to the top.

Bob Tremblay on December 16th, 2011 7:40 pm

I became a Matco distributor in 2007. when seeding my route with my DM I found shops that were not on my list of calls a couple were not being serviced and he stated I could service them and he would add them to my list of calls. several other ones belonged to another Distributor.

when I finally got into my route I found out several of my shops here taken away from a couple other distributors. This did not make them happy and made it difficult for me to do business with them.  I also found out that my route was made up from a distributor that matco had terminated. he had 3 routes then downsized and went back to 1 route keeping the best shops. The portion of the route I received was the portion that he found to be unprofitable and wouldn’t service any more. Thats why Matco terminated him.

Debbie Solko on 2011/12/30 at 3:02 pm wrote:

Economic conditions of a area MUST be considered! Regardless of the stories otherwise, one MUST consider the reality of the buying ability of their potential customers. Research the average income of your prospective techs. As simple as a phone call or looking in the Want Ads If the local shop is only offering $10 – $12 hour and it I’d FLAT rate- How much will REALLY be left for these guys to buy tools ?? I know guys that simply can’t afford a $25 weekly payment Hell that is $100 bucks a month! Then there are the techs on a LOC that are seasoned veterans, they have a lot and NEED LITTLE! Ask yourself can you really get 200 of the guys that make so little to spend $25 week, every week?

Former WI Distributor on 2012/01/01 at 4:07 pm wrote:

I was with Matco for over 8 years and forced out due to low purchase average. After losing 15 – 20 shops in my territory I could not keep up with the economic downturn. After asking multiple times for an expansion to my route since the one next to me was vacant…I was shot down. My customer count (True) was in the area of 200-225. The new distributor now has both routes. I had to call on vacant areas 20 miles way to keep my TP going. My first 5 years were the best but when I started losing shops and asked for help I was thrown to the curb. Now after losing over $150k, Im determined to follow through with this lawsuit.

Matco has many fraudulent ways of doing business with all the risk on the Distributor…

[Note: This page is a work in progress. Please feel free to suggest additions/corrections below.]

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MAC TOOLS Franchise Disclosure Document (FDD) 2011

MAC TOOLS FDD Franchise Disclosure Document (see downloadable FDD below) states that the division of Stanley Black & Decker has discontinued its tool distributorship program and is now offering the Mac Tools franchise opportunity instead.

This is notable, as a number of lawsuits have alleged that the Mac Tools distributorship was, in essence, technically a franchise all along, and that Mac Tools was violating state and federal laws by selling it as a distributorship.

According to the 2011 Mac Tools FDD (Franchise Disclosure Document):

“Mac Tools has manufactured products and offered distributorships for the mobile distribution of professional hand tools and equipment to professional mechanics for over 70 years. Until March 2007, Mac Tools offered its traditional tool distributorship in all states. The traditional Mac Tools distributorship is not a franchise, in that no franchise fee is required to be paid to Mac Tools. In March 2007, Mac Tools began offering franchises for Mac Tools Businesses within Kentucky, while continuing to offer its traditional distributorship in other states. In November 2011, Mac Tools began offering franchises for its Mac Tool Businesses in all states and ceased offering new non-franchised traditional distributorships. While Mac Tools no longer offers its traditional tool distributorship, niany existing distributors continue in operation.”
 Mac Tools FDD (pdf format):

 MAC TOOLS 2011 Franchise Disclosure Document

 

ARE YOU FAMILIAR WITH THE MAC TOOLS DISTRIBUTORSHIP OPPORTUNITY?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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More on Mac Tools:

MAC TOOLS Lawsuit Documents: DEE C. WALTER v. MAC TOOLS, INC.  December 28, 2011

MAC TOOLS Lawsuit Alleges Fraud, Labor Violations  December 24, 2011

Is MAC TOOLS Stanley Black & Decker Selling Illegal Franchises?  December 23, 2011

MAC TOOLS Guilty of Franchise Fraud?  November 7, 2011

MAC TOOLS Lawsuit Documents: DEE C. WALTER v. MAC TOOLS, INC.

Complaint & Jury Demand in the lawsuit DEE C. WALTER v. MAC TOOLS, INC., a Division of STANLEY : BLACK & DECKER, INC., Case 3:11-cv-01997, filed December 23, 2011 in Connecticut District Court, is posted in its entirety, including exhibits, below:

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF CONNECTICUT

__________________________________________

DEE C. WALTER

Plaintiff,

v.

MAC TOOLS, INC., a Division of STANLEY : BLACK & DECKER, INC.,

Defendant

__________________________________________

COMPLAINT AND JURY DEMAND

Plaintiff Dee C. Walter (“Plaintiff”), by and through his attorneys, Marks & Klein, LLP, for his Complaint as against Defendant Mac Tools, Inc., (“Mac” or “Mac Tools”), a division of Stanley Black & Decker, Inc., (“Stanley Black & Decker”) (collectively “Defendant”), allege and aver as follows:
NATURE OF THIS ACTION

1. This lawsuit arises from Defendant‟s willful failure to properly compensate Plaintiff, who is a former Mac Tools distributor, for certain warranty and repair work that Defendant requires all Mac Tools distributors to perform, in violation of the Fair Labor Standards Act 29 U.S.C. § 201 et. seq. (“FLSA”).

2. While Defendants have historically purported to sell “distributorships”, not franchises, Plaintiff did indeed purchase a franchise as defined by state and federal law.

3. Defendants have violated Federal Trade Commission (FTC) Rule 436, which requires a franchisor, such as Defendant, to provide a prospective investor/franchisee with 23

2. Items of information that is critically necessary for Plaintiff, or other potential franchisees, to fully evaluate the nature of the business investment being contemplated.

4. With regard to state-specific laws, Defendant violated Connecticut law, particularly the Connecticut Unfair Trade Practices Act (“CUTPA”), by, among other things, failing to provide Plaintiff the necessary Uniform Franchise Offering Circular (“UFOC”), before Plaintiff purchased his Mac Tool Distributorship, which in reality is a franchise.

Furthermore, since Plaintiff purchased a Mac Tools franchise, as opposed to a distributorship, Defendants also violated the Minnesota Franchise Act, by improperly terminating Plaintiff‟s franchise and not allowing him the necessary time to cure any alleged “defaults” Defendants allege Plaintiff had pursuant to his franchise agreement with Defendant.

5. As a result of Defendants‟ foregoing violations of state and federal law, Plaintiff seeks compensatory, punitive, statutory, and treble damages, as well as attorneys‟ fees and costs from Defendant.

Complaint & Jury Demand [pdf format]:
DEE C. WALTER v. MAC TOOLS, INC., Complaint

Exhibits:
DEE C. WALTER v. MAC TOOLS, INC., Complaint Exhibits

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More on MAC TOOLS:

MAC TOOLS Lawsuit Alleges Fraud, Labor Violations  December 24, 2011

Is MAC TOOLS Stanley Black & Decker Selling Illegal Franchises?  December 23, 2011

MAC TOOLS Guilty of Franchise Fraud?  November 7, 2011

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