MATCO TOOLS Franchise Complaints

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• I started a Matco Tools business and have been unhappy ever since. I came across the below and find it to be completely true…………

  Matco Tools Dirty Dozen- 12 Reasons Why Distributors Fail

  1. Bait & Switch Distributor Rides
  The prospective distributor is taken on a “check ride” with a distributor that has a much better territory than the new prospect will receive.
  2. Inflated List of Calls
  The “List of Calls”, or number of potential tool buying customers, sold to the distributor is inflated and often includes customers that have little or no chance of ever buying tools from the distributor.
  3. Misleading use of branch paid sales figures to prospective distributors
  Use of misleading sales figures based on average sales of a Regional Branch, which are by their nature higher than a prospect can achieve.
  4. Churning of List of Calls
  Lists of Calls or territories that have failed before are re-sold time and again to unsuspecting prospects to ensure that Matco keeps a distributor in the territory regardless of their ability to be successful and the company’s knowledge that the territory is unlikely to support a successful route.
  5. Overselling of Tools
  Employees are paid commissions on tools sold to distributors by the company so distributors are subject to aggressive sales tactics used to sell more and more tools to distributors regardless of their ability to sell the tools; after all, you “can’t sell from an empty truck”.
  6. District and Regional Manager conflicts of interest
  Inherent conflict of interest between company managers and distributors because although managers are pitched as “business coaches” and “partners”, the managers are paid commissions on tools sold to distributors – if distributors don’t buy, managers don’t eat.
  7. Extension of Excessive Amounts of Credit
  Matco extends excessive amounts of credit to distributors to allow them to “purchase” more and more tools from the company regardless of the distributor’s ability to sell the tools and regardless of the distributor’s ability to pay that credit line off – eventually, the distributor suffocates on his debt and his route fails (this allows the territory to be re-sold to a distributor with a “fresh checkbook”)
  8. No Room to Grow- Over Penetration
  The List of Calls given to a distributor will shrink over time. Matco locates too many distributors too close to each other and consequently when the natural reduction in customers occurs the distributor has no place to go to replace these lost customers.
  9. Credit Hypocrisy
  Matco will extend credit to mechanics to purchase big ticket items from the distributors such as diagnostic equipment, but will not extend that credit to mechanics that do not have Social Security numbers or other proper worker documentation; yet Matco expects the distributor to extend its own credit to mechanics that do not have Social Security numbers or other proper worker documentation for the sale of smaller ticket items.
  10. Non-Supervision/Assistance –– Diluted District Manager supervision
  There are not enough managers per dealer to provide meaningful business assistance which should include sales assistance to business reviews.
  11. Usurping New Customers
  When a new customer is located in a specific territory, the customer is often not given to the distributor but used by Matco to create new Lists of Calls so that in can sell another initial inventory and more tools to a new distributor.
  12. False Recession Excuse
  Matco blames the current economic difficulties and failures of its distributors on the recession. The truth is that had the List of Calls had been sufficient, meaning enough customers to sustain the amount of tools purchased (and the debt service of those purchases) far fewer distributors would have failed.

• A class action lawsuit is in the works right now. It is time to put your foot down and let Matco Tools know that distributors are sick and tired of their illegal, and unfair business practices.

  Contact Jerry Marks @ (732) 747-7100

  jerry@marksklein.com

  Marks & Klein LLC
  63 Riverside Avenue
  Red Bank, NJ 07701

• There are two other places you can post your comments,
  http://www.ladymatco.com post in the comments section or

  go to Facebook
  https://www.facebook.com/pages/Matco-Tools-Distributor-Association/293379297348041?skip_nax_wizard=true
  thanks!!
  Debbie Solko

• Matco is not a perfect company. None are. You must use your own common sense in any business dealing. I have been a distributor for 22 years, and have experienced none of the above problems. I am self employed, and I buy what I want from Matco, nothing more. They do not run my business, nor force me to buy anything. Matco does not sell territories- the franchises are free. Distributors buy nothing from Matco except tools, period. Use your head, buy what you need. Matco does not “expect” a distributor to sell to workers without proper documentation- the first line of the computer program page for customer entry is social security number. If you don’t fill it in, you’re an idiot. There is not a single customer in my computer without a SS#. Matco is not without problems, but if you don’t have the intelligence or common sense to run a business, then punch a timecard somewhere. If you make mistakes and fail, look in the mirror for the reason. If you need someone to hold your hand, join a union.

• If Kevin has been a distributor for 22 years he is NOT a franchise – he signed on back when they were ‘charters’- whole different set of rules for them boys. While Matco may not have ‘sold’ me a route – they did make me BUY $80K of start up inventory – that THEY choose, I couldn’t pick anything. Oh, and Matco DOES make me buy 80% of the National Purchase Average/weekly OR I will get the boot. As far as expecting a dist. to sell to un documented workers – well, they didn’t ask for SS# s when they did their survey – and they make up a large number of my customers. If I didn’t sell to them, then I surely wouldn’t have the 325 potential customer base. Matco doesn’t care if their distributors have the intelligence to run a business – as long as they have good credit – Matco doles out financing like candy. I’m too busy working 80+ hours a week trying to make a living to see anything but a worn out man when I look in the mirror. Walk a mile, or a few hundred, in my shoes before you call me an idiot!

• Kevin,

  Congratulations on 22 years. YOU are located in a good market. The other 80% of us are dealing with techs struggling to turn 19-20 hrs. a week and keep food on the table for wife and baby. We are just trying to keep the wheels rolling.

  SSN’s ? Who cares? All of my 142 skips have a SSN. We are talking about the “churn and burn” attitude Matco has. After 22 years I KNOW you have seen it !

  BTW, save the punch a time clock, look in the mirror, hold your hand speech for the MDAC suck-ups. Congrats again on your success, but don’t think for one second you know what is happening on the other side of the fence.

  Franchise was free? LMFAO, that’s a good one !

• Gary, Business is slow everywhere, including here. If I had any business debt, I don’t know if I could survive. I’ve had very good years, and bad ones also. I don’t blame it on Matco. So you really don’t think I know what’s happening “on the other side of the fence”? I’ve seen every possible side of this business. I’ve had many problems with certain individuals at Matco. Many are gone now, as they should be. Some still need to be purged. I am optomistic on the future of this company, as I’ve seen some positive changes, with more to come. I’ve known our incoming president since I started in 1989, spent a good amount of time with him and his wife, and consider him a friend. He has the potential to bring common sense back to the management of Matco, and I’m looking forward to it. I’m not really unhappy with our current president, as I know him personally also. He’s a good man, but I’m sometimes not sure he knows what mistakes some of his upper management individuals are making.

  The bottom line is- I buy tools from Matco. I also buy tools elsewhere. Matco is my main tool supplier. I really don’t need them for much more. If I am unhappy with their service or certain products, I go elsewhere. If Matco has a “churn and burn” attitude, why should that affect me? I buy what I choose to buy, and make my own decisions.

  So what did you pay for your franchise? I own two, and didn’t pay a dime for either. My brother didn’t pay for his. I have never known a distributor who paid Matco for a franchise, or for anything else, except tools. Please explain.

• John- I am a charter distributor. My second franchise is under the current agreement, so I know precisely the rules of both. When I started my second franchise eight years ago, the rules were the same as anyone starting a new route. I did not buy a starter inventory. Matco would have liked that, but they do not run my business, or tell me what to buy. I also did not finance my business through Matco. I had no money when I started, but I financed through a local bank with an SBA loan. I am an independent business man, and will not owe Matco anything except my current tool bill. Matco does not do an IQ test on potential distributors. Neither does any other company, tool related or not. I have also worked very long hours, and still stay on the route till after midnight one night a week. My son was born the year I got in business, and I missed a few things as he grew up. Point being, this business was MY choice, not Matco’s. My success or failure is on MY back, not Matco’s. Same goes for your satifaction and happiness. If this business is not for you, then find one that is. No company will ensure your success. That’s up to you.

• Kevin – regarding your second franchise – it is NOT under the same rules – apparently. I DID HAVE TO BUY A STARTER INVENTORY AND I HAD NO CHOICE. I ALSO HAD NO SAY IN THE PRODUCTS THAT WERE INCLUDED IN THAT STARTER INVENTORY. I ALSO HAD NO CHOICE REGARDING FINANCING – I WAS TOLD MATCO WOULD HANDLE THE FINANCING, FILL OUT THE APPLICATION, PERIOD.
  PS the definition of a ‘franchise’ is a business plan that , if followed will not fail.
  Well, I followed the plan. Oh, and I keep being told that my franchise “will be pulled for non compliance IF I don’t meet the 80% of National Average”
  Good for you, buy what you want. I’m stuck struggling to meet Matco’s required purchases. It is like being told to juggle – sure, it would be up to me to learn – But, Matco wants me to juggle without any arms, not happening. Like Gary said, save the “look in the mirror” crap for MDAC suck ups.

• Kevin- Quote; “If Matco has a “churn and burn” attitude, why should that affect me?”

  It doesn’t affect you. Obviously you are bullet proof, especially when you admit you buy from WD. IT DOES however affect the new people trying to make a better life for themselves. Can’t make the top 500 in your first year? Let’s make a call to the bullpen. You are outta here !

  You didn’t have to buy a starter inventory for your second truck? BULLETPROOF !
  Everyone else was riding around with a whole shelf of Funnel Buddy’s.

  Quote; “So what did you pay for your franchise? I own two, and didn’t pay a dime for either.”

  You, I and everyone else that obtained a loan either through a bank or Matco is paying interest on that loan. Matco banks the interest, then cuts DBR’s off at the knees and expects you to re-pay the loan with no income. Oh by the way, send us back all your tools -15% re-stocking fee and shipping costs.

  No worries though. Matco has another “qualified” candidate waiting in the wings and the vicious cycle begins anew.

• Kevin, I’m so glad that 100% of your customers have a SS#. Try having Matco provide you a route that has 90% un-documented workers.No SS# or DL#. Your choice is to now sell to them & pray they don’t skip or close shop your first week in business.

• Kevin, I need to quote you on something…”If I had any business debt, I don’t know if I could survive”.

  How many new distributors do you know that didn’t finance their truck & starting inventory? But, Matco tells them not to worry because there is money to be made.

• John- My second franchise absolutely has the same rules as everybody else, and is more of a pain in the ass to get started and maintain since nobody at Matco knows what it’s about. I’ve learned to work through it. As with any business agreement, you must stand your ground. Matco wanted me to purchase a starter inventory- I told them I had enough to fill the truck, and I provided proof of that. I also told them I’d run the truck independent if they had a problem with it. They came around. Matco will not allow a new franchisee to begin their business with an inadequate inventory, and I agree. No matter what you may think, there is no desire at Matco to move distributors in and out of business. It costs Matco a lot of labor hours to put you on the street, and a ton of money if you finance through them and go bankrupt. And by the way, you absolutelty had a choice with your financing. Believe it or not, Matco would much rather NOT finance your business. It puts them at risk if your business fails. You must, of course, fill out a credit app- Matco loans you money each week as you order tools. You could have financed you business any way you wished.

  So what’s the hang up for you and Gary with MDAC? I’m not sure how your region did things, but in my region, “suck ups” would be farthest from reality. I was on the council for 17 years- I believe the longest of any distributor. The management attendees from Matco did not relish the idea of being there, as it was not always a friendly environment. In fact, it rarely was, but we still accomplished more than I ever expected.

  Gary- I am no where near “bulletproof”, and I have many scars to prove it. So do you expect a loan from Matco or the bank without interest? Your franchise was free. Money is not. And I believe Matco still has a six-month-out option with full refund. Please correct me if I’m wrong.

  Dave- Sorry, I have to call BS on your 90% undocumented workers. If that were true, did you not know where your route was going to be? And if you really were that blind before you took the territory, why would you not take the six-month-out option after you figured it out? Furthermore, did you really expect Matco to ask for SS#’s during the route survey? Again, sorry, but that don’t fly.

  And yes, you may quote me. I’m 53, and I just don’t have the energy I had 20 or even 10 years ago. I’m either not able, or not willing, to work that hard anymore. I paid my dues- I just wish the economy/government was what it used to be, so I could profit a bit easier. Not Matco’s fault, just the way it is.

  Guys, I hate to preach, but if you take the attitudes you display here out to your route, you are shooting yourselves in the foot. Matco is not a bad company. Use the programs and suggestions that work for you, and ignore the rest. Make it YOUR business, not theirs. Again, if it’s not for you, get out before it ruins your finances and move on to something you enjoy. Life’s too short.

• Kevin – seriously? are you being PAID by Matco? How dare you? What condescending attitude you have. Well, I’m happy you KNEW you didn’t need to buy Matco’s starter inventory. But, HOW? would I or any new potential distributor know? We relied on the ADVICE of the Matco officials that flew to Colorado from Stow Ohio to sign me up. We did not know there was a financing option, AGAIN, we relied on the ADVICE from the Matco officials that flew to Colorado from Stow OHIO to sign me up. I was TOLD my route would work. I was TOLD my route would make money. I DID MY PART – I believed the lies……….. now I get to file bankruptcy.
  Go ahead and judge me – then contact ANY ONE OF MY CUSTOMERS – I am an excellent tool distributor – I DID MY PART, Matco FAILED ME. period. Kevin, I’m NOT alone, 46% FAILURE RATE IN MY DISTRICT – It is NOT me.

• Gary is wrong there is no six month opt out. One of the many problems with Matco is a 46% failure rate in our district . this is caused by poor planing from the district manager and a total willingness on Matco corp to take peoples money without a solid plan for the franchise.We were told “your route is not perfect, but with hard work you’ll be o.k.”( the definition of a franchise is a workable bussiness model) unfortunately 80 hours a week (and 700 miles a week) makes the “workable” part of this impossible. Somewhere in their math they lost over a grand a week, and the DM and Matco have no explanation .So “get out and move on while your credit is still good? Your full of crap, my once 796 credit rating is lone gone and things were done right, MATCO LIES. As far as undocumented workers…I’VE SEEN IT. the last day job i had was at a construction co 70% of the co was illegal 96% of the field workers…because nobody is going to do journeyman construction for $8.00 an hour. SBA has Matco franchise failures @36% . That is reprehensible. My wife left her last gig because the mgt there was systematically ripping off their customers. Matco is no better

• Debbie- didn’t mean to offend you. I’m definately not being paid by Matco, just conveying my experiences and advice, just as you asked. I bought the starter inventory when I got in business- just figured Matco knew more about it than I did at that time. I had a few dogs, but got rid of most of them. (may still have some!). Now about the financing- did Matco actually tell you that you HAD to go with their plan? You couldn’t come in with your own money (yours or the banks)? Why would they do that, and where does it leave them now? If you file bankruptcy, they lose their ass. I have spoken with many folks in the finance dept of Matco over the years, and I assure you, they would much rather a distributor find their own money. Yes, they charge interest, but a few distributor bankruptcies will eat that up real fast. Financing distributors is not a cash cow for Matco. I am not judging you, and am very sorry things didn’t work out for you. My experiences obviously differed from yours, as no one from Matco ever made me any guarantees. If your DM or MDM made those statements, you have a right to be upset. That’s just not what I’ve seen. That being said, I never trust everything a salesman says, and a salesman is what a MDM is. I put a good year of thought and research into my decision to be a distributor, and fortunately it worked out for me. These last two years have been trying, but I can’t blame it on Matco. My shops are dead slow, so the money just isn’t there. I hope I can hang on till things pick up. If not, I’ll move on.

• Kevin should start over now and see how much of his “wisdom” means anything in this day and age. We were told that” this is what your getting”( starter inventory) , no “options” were EVER discussed, we had a number of people walk on the truck from neighboring business’ and the official line from Matco is ” you cant service that place were saving it for another distributor” KEVIN says “Matco does not sell territories” true … but they do tell you who you can and can do business with. Also, once you’ve “fallen from favor” with good luck…I’ve seen distibutors franchise pulled because of some really lame reasons, like having other than Matco gear on the truck. Sound familiar Kevin?the only reason you’re getting away with it is you have a good route ( well established ) thats making money. Go try to get some more customers ( ones with money ) and see if Matco pulls you’re franchise ……… you are so far removed from my reality you will never “get it” lot o luck

• Kevin If this “Debbie” files bankruptcy Matco gets to write it off. Its nothing to them. the same way you’ve written off skips…. Matco does business badly , customer service blunders on their part are endless, and thats the kind of stuff that will kill an upstart business. I’m curious Kevin, how many miles do you cover in a week?

• Kevin,

  Look dude, you are happy with your situation. That’s great. You are satisfied with Matco, that is fine as well. Matco does have good areas. I think the customer service people do a good job.

  However, you are starting to sound like a company “shill” and seem to have a lot of time on your hands for running a truck after midnight? You say you hope you can hang on until things pick up?

  You have been around for 22 years and YOU hope YOU can hang on ? Think about the newbie’s who walked away from a steady job to try this only to find out they were lied to about the territory, customer head count, the mountains of money they were supposed to make. (Yes, this does happen verbally)

  They sunk every penny they had into their business, they hit the road everyday, ran all the contests and tote & promote, took care of all warranty issues without question. Then out of the blue their DM starts to talk about an “exit strategy” (or one of the thousands of tired, worn out cliche’s they use) because they can’t quite catch up to that 80% of that ever increasing, overinflated national purchase average.

  This forum is for THOSE DBR’s who were flat out misled by Matco and sold a failed route that has been sold over and over again. They were promised support, NOT an “exit strategy”.

  If you fall into this category don’t be ashamed with the look in the mirror comments. YOU did not fail Matco. Matco failed YOU. DO NOT just sit on your hands and vanish onto the sunset as Matco hopes you do. STAND UP and fight for yourself and all distributors who have been blind-sided by these shady business tactics.

  Call Jerry Marks…………….(732) 747-7100

  To hell with occupy Wall Street. It’s time to occupy Stow, Ohio !

• Right on Gary! If you don’t stand up for your rights – you will get stepped on. Make a little noise, it is your constitutional right – FREE SPEECH (maybe you have heard of it) In any case, big companies will bully – because they know the ‘little guy’ can’t afford to fight them. Strength in numbers people.
  POST on this site
  POST http://www.ladymatco.com
  POST https://www.facebook.com/pages/Matco-Tools-Distributor-Association/293379297348041?skip_nax_wizard=true
  But please, don’t be lead by lies and believe you failed – Matco failed you. Voice your opinion – VOICE your opinion – you can’t be heard if you don’t speak.

• I never heard of a 6 month out option.

• I have heard of the mysterious “6 month opt out clause” but only after the fact. It seems to be one of those maybe, maybe not things. I don’t know.

  @LadyMatco…………….YOU GO GIRL !!!!

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• The heated debate over the Matco Tools franchise has just become a few degrees hotter with the filing yesterday of a class action lawsuit. Read the allegations here and comment here:

  FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud

  Feel free to link to or share this URL:
  http://www.unhappyfranchisee.com/franchise-lawsuit-matco-tools-scam/

  UnhappyFranchisee.com intends to follow this case and other allegations against Matco Tools as they unfold.

  UnhappyFranchisee.com seeks to communicate both sides of a given debate so readers (and prospective franchisees) can make up their own minds. Representatives of Matco Tools, TD Bank or others are invited to submit clarifications, opposing opinions and/or rebuttals for publication.

  Contact the site ADMIN at UnhappyFranchisee[at]gmail.com.

• Carl- You’re kinda all over the place, but I’ll try to respond to a couple of your points. I buy 95% of my products from Matco, but I do buy elsewhere also. I’m not “getting away” with anything- Matco will never know what’s on my truck, and it’s none of their business. I own the truck and what’s in it, and they will see inside only if I let them. That’s been my attitude since the day I got on the route, so it has nothing to do with being established. I had a regional manager on my truck shortly after I started, who said he was “the boss”. I explained to him that he would never be MY boss, and that I would never work for him. We got along fine after.

  So when you or Matco writes off bad debt, is there some fund that just pays you back? Do you not understand what a write off is? If I write off a $1000 skip, that money comes off my taxable income, so I’m taxed on $1000 less profit. If my tax rate is 20%, I still lose a real $800. It’s no different for Matco.

  And I currently drive 325 miles a week. My original route was 800 a week. My second truck drives over 500.

  So according to Gary, this forum is only for people’s complaints against Matco, and apparently you have no use for any other views. No problem- I’ll leave you be. Just one final thought- Matco only makes money if YOU make money. The distributor is their main source of income, probably well over 90%. Industrial sales and Tech-ed makes virtually nothing. Their goal is not to ruin you. If you fail, they fail. I can name a few in Stow that don’t understand that concept, but overall, you need to be successful for them to survive. Again, I’m sorry for your misfortune, and good luck with your fight, though I do feel that in the end, it will be a waste of time and money.

• WHEN I STARTED WITH MATCO, MY FIELD REP HAD TO PIECE MY ROUTE TOGETHER IN BETWEEN OTHER DIST. WHY BECAUSE HE GAVE ME SHOPS WHERE OTHER DIST FAILED AT THOSE SHOPS. I HAD STOPS WHERE OTHER DIST WHERE STOPPING ON THE LEFT AND RIGHT SIDE OF ME.

  MATCO DOES HAVE A 36% FAILURE RATE WITH THE SBA. THEY CARRY THE WORST RATE WITH REGARDS TO FRANCHISES.I HAD A FORMER PRESIDENT OF MATCO CALL ME AND TELL ME EXACTLY HOW MATCO DOES BUSINESS. MATCO ALSO STARTS YOUR INVENTORY OUT WITH SOME DISCONTINUED ITEMS, WHY, TO GET THE PRODUCT OFF THEIR SHELVES.

  MY DIST MANAGER DARRYL PRITCHETT STATED TO ME AT ONE TIME THAT HE WAS NOT WELCOMED TO DO A RIDE WITH ME AND THAT I STATED THAT. WHICH WAS INCORRECT, I ALWAYS WELCOMED HIM, I SHOWED UP TO EVERY MEETING AND HELPED HIM SET IT UP AND NEVER GOT A THANK YOU.

  I STARTED THIS CLAIM WITH JERRY MARKS LAW FIRM AND I WILL FOLLOW THRU, WIN OR LOSE, MATCO NEEDS TO LEARN THAT YOU CAN NOT TREAT PEOPLE LIKE THIS AND GET AWAY WITH IT. MATCO IS NOT THAT BAD, IT IS WHO THEY CHOSE FOR FIELD REPS AND DIST REPS THAT GIVE THEM A BAD NAME. WHEN TIMES ARE TOUGH OTHER FRANCHISES DONT KICK THEIR FRANCHISEES TO THE CURB. MATCO DOES.

  I HAVE DOCUMENTED CONVERSATIONS WITH OTHER DIST REPS WHO WERE FIRED WILL ATTEST TO THIS. WHY DOSENT MATCO HAVE THEIR VETERAN DIST SIGN A NEW CONTRACT? THERE ARE ALOT OF QUESTIONS MATCO NEEDS TO ANSWER, SO LETS GET TOGETHER WITH JERRY MARKS, TAKE THEM TO COURT AND LETS GET SOME RESOLUTION. CALL TOMMY AT [redacted] IF YOU HAVE ANY QUESTIONS.

• Kevin writes that “Matco only makes money if YOU make money… Their goal is not to ruin you. If you fail, they fail”

  Franchise companies say this all the time. But there is a practice known as “churning” where some companies make more money by getting the initial influx of cash from new franchisees, then reselling their territories or routes after they’ve failed.

  The class action suit says that Matco knew that a high percentage of distributors wouldn’t make it past 2-3 years but still made money off cashing fat checks that usually have to be repaid by the taxpayers after the distributors default on their SBA loans.

  The idea that franchisors fail if their franchisees fail is nonsense if they can just keep churning the same franchises over and over.

• As I read through these comments it has become clear – I as well as Tommy, Dave, Carl, Gary, John, and Anthony have all suffered financially and have sustained substantial loss at the hands of the Matco franchise game. We ALL have valid complaints and have already lost everything – and only can gain from fighting the fight. We HAVE reason and right to voice our concerns, opinions, and problems.

  However; Kevin – who states he is happy and successful – really has NO reason to be putting up such a fuss over an issue that really has nothing to do with him.

  I have to ask myself, WHY? would Kevin (and so far, Kevin alone) be so adamant about defending the big corporate Matco?

  I have to ask myself, WHY? would Kevin be spending so much time and effort posting on a site titled “Unhappy Franchisee” – if he were just idly surfing, why? how? would he come upon this site. As Gary so aptly put it, “However, you are starting to sound like a company “shill” and seem to have a lot of time on your hands for running a truck after midnight?

• Debbie:

  I’d just make the point that these issues are now every distributor’s problem. Even formerly content franchisees & distributors are going to have to grapple with these issues as more media attention is given to allegations against Matco.

  We posted first thing this am about the class action suit: http://www.unhappyfranchisee.com/franchise-lawsuit-matco-tools-scam/

  The NY Post also published an article about Matco, Danaher and TD Commerce Bank: http://www.nypost.com/p/news/business/td_bank_tool_case_LFdZzYpQKpxieyeMSf6OMP#.TsJ7b0Hh3BM.email

  This is going to be a PR nightmare that will undoubtedly affect the Matco brand both on the consumer and franchise opportunity level. If Matco/Danaher is smart they’ll acknowledge that there are serious problems and announce immediate, major steps and policy changes being taken to help their franchisees succeed and break the cycle of failure.

  How smart would it be for them to come to the rescue of Miss Matco instead of fighting her or letting her fail?

• 1. HOW MANY TIMES DID YOU ASK YOUR DISTRICT MANAGER FOR HELP ON SOMETHING AND HE WAS UNABLE? EXAMPLE WHEN I DID MY FIRST CONTRACT, HE DID NOT KNOW HOW TO DO A CONTRACT,HE INSTRUCTED ME TO CALL ANOTHER DISTRIBUTOR.
  2. HOW MUCH TERRITORY DID YOUR DISTRICT MANAGER COVER? MY DISTRICT MANAGER WAS ABOUT 100 MILES AWAY FROM OUR TERRITORY.
  3.WHEN SEEDING MY TERRITORY, MY DISTRICT MANAGER WAS UNAVAILIBLE, HE HAD ANOTHER DISTRICT MANAGER FROM TAMPA COME RIDE AND WE NEVER COMPLETED OUR SEEDING OF MY ROUTE.
  4.WERE YOU EVER COMPENSATED BY MATCO AS A REPO MAN?WHAT ABOUT A REPAIRMAN WHEN YOU HAD TO REPAIR THEIR TOOLS?
  5.HAVE YOU EVER STOPPED AND COUNTED THE PEOPLE ON YOUR ROUTE THAT THEY SAY ARE MECHANICS? YOU SHOULD YOU WILL BE SURPRISED.
  6.WHEN BUSINESS WAS GETTING ROUGH IN 2008, HOW MANY TIMES DID YOUR DISTRICT MANAGER COME AND ASK IF YOU NEEDED HELP? THAT IS WHAT HE IS OUT THERE FOR CORRECT, TO HELP OUT?
  7. THE BACK OF OUR TRUCKS STATE, DRIVE YOUR OWN BUSINESS, WHEN IN FACT MATCO CAN SHUT YOU DOWN WHEN THEY WANT, ITS NOT YOUR BUSINESS.
  8.DISTRICT MANAGERS HAVE QUOTAS TO MEET, WHEN THEY DONT MEET THEIR QUOTA, YOU ARE GONE.
  9. OUR DISTRICT MANAGER DID NOT WANT US TO TELL OUR CUSTOMERS THAT SOME OF MATCO TOOLS ARE MADE IN CHINA, WHY?

  THESE ARE SOME REAL ISSUES MATCO HAS WITH THEIR DISTRIBUTORS, THEY NEED TO SUPPORT THEIR DISTRIBUTORS, WITHOUT SOMEONE SELLING THEIR PRODUCT, THERE WOULD BE NO MATCO.

• WE NEED TO JOIN FORCES, FIGHT FOR WHAT IS RIGHTFULLY OURS, TAKE MATCO TO COURT. CALL JERRY MARKS, THEY NEED TO REINSTATE US TO WHERE WE WERE BEFORE SIGNING WITH THEM. I SENT OUT ABOUT 900 E-MAILS AND YOU WOULD BE SURPRISED AT THE NUMBER OF DISTRIBUTORS THAT ARE OUT OF BUSINESS.WHY IS THE NUMBER SO HIGH? IS THERE THAT MANY STUPID PEOPLE WHO CANT RUN A BUSINESS OR IS IT MATCO LOOKS TO SHUT PEOPLE DOWN? I THINK IT IS MATCO.CAN ANYONE EXPLAIN THE 36% SBA FAILURE RATE? JOIN FORCES AND LETS FIGHT MATCO, IN COURT.

• oops !

  Who is looking in the mirror now Kevin ?

  http://www.unhappyfranchisee.com/franchise-lawsuit-matco-tools-scam/

• Debbie- I never “stated I was happy and successful”. Please don’t put words in my mouth. So you want to know why and how I found this site? I’m gonna make you feel stupid, but you asked… and it wasn’t from “idly surfing”. I recieved a “friend request” from you on Facebook a while back. I didn’t have a clue as to who you were, but since you said you were a Matco distributor, I accepted the request. The link to this page was below your name on your postings. Now you know who I am. Clear? You may want to limit your requests to Matco haters in the future. So much for your conspiracy theory. The first thing I saw here was the 12 listed items above, and since I found most to be either exagerrations or fabrications, I felt the need to respond.

  Tommy- Who was the former Matco president that called you? Willis has been president for what, 15 years? Just curious…

  Gary- What’s the oops? From the time I got in business, I have looked in the mirror when I’m successful and also when I fail. The reason is that I take responsibility for my actions, good or bad. This is MY business, and will succeed or fail because of ME.

• Kevin,

  Tommy was probably talking about Tim Gilmore who bailed because he knew dark clouds were on the horizon.

  The oops comment was not direct at you. It was directed at the corporate pirates at Matco who knew a wrong was being done but didn’t give a hoot.

  Keep up the great “shill” game. I’m sure a shiny new 5225RX awaits you at the next Expo game show. I’m sorry but you will still have to pay $725.00 a night for a $199.00 room.

• Kevin, well, in your words, ” have been a distributor for 22 years, and have experienced none of the above problems.” “If I am unhappy with their service or certain products, I go elsewhere.” – a lot of people associate ‘no problems’ and “IF I am unhappy’ with, well being happy. Successful? “My second franchise” – well, having a second franchise may not necessarily mean you’re successful but you certainly are not struggling.
  Thank you sir, no, I don’t feel stupid…. I attempted to make as many contacts as possible as communication between distributors is of utmost importance – and I certainly was not given contact information beyond my district. I do regret allowing my “smart phone” to sync contacts as many of those new contacts have been less than friendly.
  I said nothing about a ‘conspiracy theory’ – I am still curious why you are so adamant and such a cheerleader. You are not having the same problems – your words, however; you seem quite determine to trivialize the legitimate issues and problems the “unhappy franchisees” are having.
  In closing, I would thank you sir NOT to imply any of us ARE NOT taking responsibility for our actions. I personally, am responsible for working 80 hours a week, driving 500-700 miles a week, providing excellent customer service to my customers, toting, promoting, learning, maintaining my truck, making certain my ‘store’ is well kept and stocked, paying the bills, running a household………………. and YET STILL FAILING. Maybe, just maybe if I was a LONE disgruntled distributor – maybe you would have grounds. I AM NOT ALONE.

• Gary- Gilmore hasn’t been president yet, but he will be by January 1st. I wouldn’t say he bailed- he had the opportunity to be president of Hennessy, and that’s where he’s been. I have a lot of faith in him, and am looking forward to him getting rid of a few people in Stow that we all have problems with. May not happen, but I’m hoping. By the way, I’ve never won a damn thing at those game shows, and haven’t been to the last two expos. Probably won’t go to the next one either. The deals aren’t deep enough, and shmoozing with the brass has never been my thing.

  Debbie- I also never said “no problems”. Just not the ones listed. I’ve had many problems over the years, some caused by individuals at Matco, some not. I’m not a chearleader for Matco, as many I’ve had contact with will attest. But I refuse to blame Matco as a whole for the problems I’ve had. If this lawsuit gets any teeth, Matco may end up paying out some money (that’s what it’s all about anyway), the lawyers will get their percentage, and what’s left will get divided up among the members of the class. In other words, the lawyers get richer, and the class gets the crumbs. The problem is, you seem to be hell-bent on damaging Matco, and there’s 1400 distributors out here that would appreciate not being taken down with you.

• 1400 other distributors and you’re the only one waving the pom poms here

  but, thank you, without your comments there would be half the conversation, the posts may have just quietly gone away –

• Kevin , all over the map?… Maybe it’s because there is too much to list. So how exactly did you get your route down to 325 from 800 miles a week?I had to threaten legal action to get 40 more clients added to my “official “list. Did you explain to your non-boss that you would be not be cooperative for ride alongs with the DM or they were not welcome on your truck ?I doubt it. And what are you hiding on there anyway? More than 5% non Matco? What I do not have a use for is “company yes men” telling us” its all how you look at it” from my point of view it looks alot like ” fraud” or maybe bankruptcy………either way, you’re having a great time , more power to ya….. I’m liquidating personal assets ( some of which I’ve owned for 30 years) and trying to keep my house. Bottom line is: there are too many failed franchises in Matco for this to be coincidence too many for it to be anything but SYSTEMATIC FRAUD and they will be held accountable in court P.S : according to SBA 36% of Matco franchises are failing … yet Matco has posted good earnings all along . Your math is as bad as theirs

• Charter – wow, they get way better ‘rules’
  A ‘charter’ has a 6 mo opt out plan and gets 100% back, franchisee get 6 mo – with 85% back – although, NOBODY ever tells the poor suckers they can get out

  Charter – Matco will work to get you out of your truck lease or get at least 3 mos lease payments – franchisee – nada

  Charter – NO limits on outside buying – franchisee 80% of National purchase average —– THIS POINT IS HUGE!

  I can buy RETAIL some items for LESS than the cost price at Matco, wow, if I had NO limits on outside buying – I would buy items for WAY less and make better margins, hmm, maybe then I could stay in business, yeah, like the Charter members do……………

• Fighting with kevin will not get you anywhere he is what he is. Happy with 2 trucks (great). He does not have the same agreement we have. He has the old agreement which was much different then the current one. Regardless arguing with him does not help the cause. I have owned several businesses (good and bad) but this one was completely a miss leading venture. Matco is selling you a francise based on the past not on current economic situation. The question is what can we do about it now? Keep doing what we are doing and pray it gets better or bail and lose whatever else we may have left?

• Carl- The route I wanted (close to home) was taken by a guy that had his mother buy him in. Since I didn’t have that option, it took me a lot longer to get financed, and I took my second choice. The distributor that had my prefered route was a drunk and a wife beater, and of course his business failed. I gradually was able to sell off pieces of my original route to various distributors, and move into what I wanted from the start. Does my math work OK now? As a matter of fact, I did explain that Matco employees were only welcome on my truck when I wanted them to be there. I haven’t allowed a ride-along in 20 years. Doubt what you wish. Nothing to hide- just none of their business. Do I sound like a “company man”? If I thought my DM wouldn’t mind, I’d give you his number to check on that.

  Now if you are actually selling stuff off to support your business, you have a serious problem. If your business is not supporting itself, for whatever reason, letting it die that way is not the answer. What are you hoping for? Do you see a possible improvement in the future? If not, please end it before you lose everything. I’m serious. I’ve seen it too many times- Inventory drops to nothing, no money left on the street since you have nothing too sell, and no way to pay back the debt (if there is one). The only option at that point is bankruptcy. I will NEVER compromise my inventory. If I get to the point where I can’t afford to replace the sold items, that will be the day I sell out. I’ve been in the top 10 six times, top 150 every year until 2007 or 8, but there have still been times that I was close to getting out because I couldn’t see short term improvement. Now is one of those times. My ace in the hole is my inventory- two full trucks that, if sold off, will give me enough to start something else. If I let that go away before I pull the plug, I will have nothing of what I’ve worked for. You can’t let that happen. Not sure what I would do at my age, but I won’t go broke selling tools.

• I agree with Paul – but we DO need to stand up and fight – call Jerry Marks

• John, you’re just fullashit. There is no such thing as a new charter- charters are the ones that were in business before franchising. How could a charter have a six-month-out program when all of them have been in business at least 17 years?? Not many charters have a truck lease to get out of, after being in business so long. Where do you get this stuff? Yes, Matco did have to make some consessions to intice us into signing the franchise agreement, since the original distibutor agreement did not include some of the items in the franchise. My second truck is under the current franchise, but I edited the documents before I signed them, and read every line of it. Some of the grievences mentiond above are clearly stated in the contract, but you must read it to know it. If you sign it, just like any other contract, you must comply.

• never said ‘new’ the charter docs are posted on

  https://www.facebook.com/pages/Matco-Tools-Distributor-Association/293379297348041?skip_nax_wizard=true

  now now kevin, getting a little testy? “fullashit” shame shame

• Kevin is a plant. He should start a web site on happy matco dist. And stay off this one.

• Kevin,1st : who cares if someones mom bought him in ? 2nd though being low class, how does being a wife beater and a drunk have anything to do with running a business? 3rd: In my district we would not be allowed to “sell off portions of our routes”. You and I are clearly working under different rules, I am told who I can and cannot do business with , so much for “MY BUSINESS”

• Say Kev,, TOP 10 NICE WORK … SO YOU REALLY ARE MATCOS “GOLDEN BOY” P.S I’m not selling my gear to support the business I’m paying my own my own bills. you say “you’ve seen it”? Seen what? Failed Matco franchisees after 22 years I’ll bet you’ve seen plenty , and as far as you’re concerned all the failures were the distributors fault. yea yea nice talking to you

• Carl- 1) By his mom buying him in, he was able to get his money before me, and got the route. Did you miss the part about taking longer for me to get the money together? As a side note, distributors who are family financed have a higher failure rate, since they don’t have as much skin in the game. Argue if you wish, that’s the way it is. 2) You don’t think being drunk (on and off the route) and serious family problems doesn’t have a negative effect on a business?? Wow, just wow. 3) Selling off a part of a route, or a town, is done all the time. No rules against it, and completely legal under current franchise rules. We recently had five distributors involved in a reorganization to get everybody closer to home in our district. It was complicated, but it was OK under the rules (yours and ours) and worked out fine.

  Paul- You found me out. Yup, I’m a plant. Read above- something about comments being welcome from everyone. Is a little common sense and logic bothering you? Debates normally have two sides. Wouldn’t be too helpfull if they didn’t.

• Say Carl- Thanks for the compliments, but “golden boy” would certainly not describe my relationship with Matco. You said you were selling stuff off. If it’s got nothing to do with your business, why mention it? Just don’t want to see anybody, even you, lose their ass. If you didn’t get that from my reply, your reading comprehension needs a little tune up.