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SNAP-ON FRANCHISE Pros & Cons of Being a Snap-on Dealer

May 20, 2012

(UnhappyFranchisee.com) Snap-on Tools franchise insider “Just a number” left this comment on the SNAP-ON TOOLS Franchise Complaints post.  We thought it was worthy of an upgrade to a full Guest Post.

Are you familiar with the Snap-on dealer franchise opportunity? Please share a comment below.

This is my input about being a Snap-on dealer…..

Goods:

The products are good and hold up well for the most part.

The brand name is strong.

The support is probably better then what you may get driving the other trucks.

You will make an average living if you are newer into this job.

Bads:

You will work more then 60 hours a week.

You will have an endless amount of cardboard and packing paper.

You will be a bill collector.

You will be on and off credit hold.

You will have little time or the money to take any days off.

You will get pressure from managers to keep buying tools.

You will be charged a very high interest rate on your truck and inventory loan when you get started.

You will never really own your route like they say you do. Snap on has the first right of refusal on the sale of your franchise.

You will be forced to deal with non paying customers.

Your head count of customers will always be less then it should be.

You will be forced to sign up in programs as a new dealer you may not like.

You will never fully understand how to manage your statements.

You will have tools show up at your house you don’t remember ordering.

You will have to buy merchandise to raffle off just to get your customers to pay you on time.

You will always have an asset manager telling you that your retaining too much money.

You can never sell any tools to any person outside your list of calls. Even if that person happens to jump in your truck from the street.

You can never have more then 5 routes at once.

You can’t hire anyone to help you in your truck unless that person is approved through snap on management.

You never always get the best deal when a product goes on sale.

Your management sales team will always lie to you if they can get you to buy more tools.

You will have to spend many extra hours every week checking your tool bill making sure there something there that shouldn’t be.

You will wait months for a new tool return credit.

You will spend a lot of time fixing hand ratchets, replacing screw driver blades and replacing bits on sockets. You do that for no compensation from snap on.

You will hear every story in the book from customers when they have no money to pay for there tool bill.

You will be hounded from snap on credit when something needs to be repossessed.

You are not allowed to make a profit on anything you reposses if the customer still owed a balance.

You will eat shipping cost on repairs that are still under warranty.

You will have back order problems.

You will have your garage stuffed with many tool boxes you don’t need.

You will see many of the same items on sale all the time.

There is much more to write but you get the point. Just remember one thing. You as a Snap-on dealer are never an independent business person. You are Snap-on’s runner and they control you. They put you in business and can take you out at any time. So anyone reading this thinking of becoming a Snap-on dealer. I would look another direction.

ARE YOU A SNAP-ON DEALER OR EX-SNAP-ON DEALER?  ARE YOU FAMILIAR WITH THE SNAP-ON TOOLS FRANCHISE OPPORTUNITY?  SHARE A COMMENT BELOW.

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Comments

10 Responses to “SNAP-ON FRANCHISE Pros & Cons of Being a Snap-on Dealer”

  1. Just a number says:

    I guess this web site liked my comment? It was all true and straight from my heart. If anyone has any further questions please respond here and I will try helping the best I can. Snap on is a dirty business and people needed to hear the truth.

  2. ADMIN says:

    Just a number:
    You’ve provided a thorough, easy-to-read rundown of what Snap-on franchise dealers can expect once they sign up.
    Thanks,
    ADMIN

  3. Just a number says:

    I wanted to add some recent criticism from comments made towards my pro’s and con’s on being a snap on franchisee.

    Someone responded on the snap on dealers forum saying ” it sounds like a dealer that is failing”. For the record I am very successful and happen to have more liquid cash on hand then MOST snap on dealers right now. My success comes from being smart and learning to filter what the company may advise me to do. I am a very rare case but making mistakes along the way and being mentored by old school successful dealers played a huge role in that. I only voice my opinion because I been there listening to managers and getting myself buried in a huge hole. So I am only sharing facts that people need to be aware of.

    There was also another person that commented on every sentence I wrote. Most of the comments made by this other dealer was generally low ball comments that had no bearing on the truth. Nice try but I am not that nieve.

    Dealers know that things are a little off but just don’t say anything. Believe me every single franchisee in snap on will one day be disappointed when the day comes when the for sale sign goes up in there route. By then it will be too late which happens most of the time and you will walk away with a lot less then you expected or nothing at all. The time is to speak up now and let your voice be heard.

  4. Keith says:

    I happen to appreciate your candor and insight to getting involved with Snap On. At present, I am CONSIDERING a franchise, and have several of my own reservations in regards to what really happens once you commit to them ?
    On the otherside of the ‘coin’, what ‘positives’ have you taken away form having a franchise? People I know now, either currently, or have ‘owned’ a franchise. The common denominator that seems to resonate with them…own at least 2 franchises to increease your odds of succeeding? What are your thoughts on this.
    My other questions, involve the additional, or ‘hidden’ costs associated with starting and running the franchise. I’m interested in knowing the things the ‘dealer’ is not openly diclosing or sharing.
    BTW…how long have you been involved with Snap On, where was or is your route?
    And last but not least: If you had to do it over, which or the tool companies would you recommend? Matco, MAC, Corn Well etc…?

    I look forward to your reply.

    Thank you,

    Keith

  5. Todd A. Peterson says:

    There are no Pro’s to owning your own franchise at this time. You will be invested in a company that is protected by our government and not held accountable for their FALSE opportunity. The International Franchise Association which is defined as being created to protect franchising “for all” is not true. Read your F.D.D. and if you don’t understand the 300 pages that make up your responsibilities call me and I will show you and explain it to you.

    Franchising is a scam.

    Read this article. “http://freedomoutpost.com/2012/08/veterans-be-warned/”

    I know it is a Matco franchise but there is hardly ANY difference in agreements from one franchisor to the next in the tool industry. In fact, Snap-On is the model other franchise companies emulate.

    Stay away from all franchises is what I have learned their agreements contain an “arbitration clause” which will render you helpless in a world full of attorneys. Their routes are riddled with competition where being successful and meeting the purchase average of the franchisor is practically impossible.

  6. Anonymous One says:

    You know, I was self employed for 16 years, then purchased a franchise. I can tell you straight up that there are NO advantages to owning a franchise (save a McDonalds or something of that size which cost incredible amounts of money). Despite what the franchisor tells you, you are not “your own person”. They control pretty much everything. If you have a dispute and want to get out of the contract good luck. Those agreements are written to the franchisor’s advantage, not yours. Take the agreement to a lawyer and I can almost guarantee you he/she will advise you that it’s not to your advantage. I was lucky and negotiated myself out of the agreement with some hard nosed negotiations that took 6 months, going from a 6 figure proposed buyout (by the franchisor of course) to a VERY low 4 figure sum. The best advice I can give is to contact vendors in whatever field you’re looking at. Many have in house training as they want you to push their products. You won’t have to pay any royalties, you advertise for yourself and can control what you do. Franchisors are there to sell franchises…period. They will argue that if you’re not successful then they aren’t…well, if that’s the case then why do you have to continue to pay royalties when there is no business; why do you have to pay into an advertising fund supporting other franchises when you don’t realize any leads from it? Go it alone, you’ll be better for it. Just my 2 cents worth.

  7. Tool scam says:

    Couldn’t be said any better. I actually read my snap on franchise agreement word for word. The first thing I though was ” why did I sign this?” everything in the agreement was all about them covering there ass and putting all the rsk on me. Do yourself a favor.. Don’t do it.. Or at least take the papers too a franchise lawyer and let them look at it.. I regret signing my snap on agreement..

  8. Anonymous One says:

    Tool scam, I took my signed agreement to my lawyer to see what achilies heel there was to go after them on. After going thru all of the non-sensical drivel, and I’m sure mine was no shorter than yours, we found one, distinct phrase/claim to focus on. That’s what I used. I did it alone initially as I had some experience with contracts, attorneys and so forth. Plus, I kept my attorney in the bull pen just in case. I directed my negotiations to one, specific person; was ALWAYS cordial and business like but firm and unyielding. In the end, I basically painted them into a corner. Had it not gone my way it was then that I would have involved my attorney having set the foundation. I got out with minimal expense and you know, that franchisor ahs continued to lose franchisees and, in the area where I was, lost over 80% of the franchises that were there. Take a look at your contract again; get another pair of eyes on it and see what you can do, Got nothing to lose and every thing to gain. Good luck to you.

  9. Greg Cummins says:

    I was a dealer in Tulsa and could not explain any better than you have. Future dealer wannabes beware.

  10. My Snap On Route is Worth Nothing in Value says:

    I wanted to share some facts with anyone looking to become a Snap On Tool Franchisee or is a current one. I been a dealer for some time now. I have built a nice route with alot of hard work on my end during the course of time and looking to sell. Snap On Recruitors, Managers, Trainers, etc etc have all said to me since day 1, that if I build up my route and work hard later on I can sell it. I have decided about 5 months ago it is time for me to sell and do something different. I hired a Broker that sells business and been preparing myself at the same time making sure everything is in order. I have one thing to say…. Our routes are worth NOTHING…ZERO. What a crock of garbage Snap On is telling us because it isn’t true. I will list below facts why our businesses out there are worth nothing.

    1. Snap On has the first right of refusal for any potential buyer.

    2. Snap On will not finance nothing more then $52,500 in RA and $76,000 in merchandise but does not include, your computer system, discontinued tools, BA and Used tools such as trade ins.

    3. Snap On will not finance ANY Blue Sky at all.

    4. If Snap On has ANY open routes near your route they will try recruiting any buyers you have into taking one of there routes. Even if that means giving the new dealer some free product.

    5. Any buyer that does come along doesn’t like how Snap On controls the whole process such as RA and Interest rates on loans.

    6. Buyers dont understand why the Franchise Agreement puts all the risk on the dealer.

    7. Buyers go on web sites such as SBA and it warns that Snap On has a high turnover rate which also gives the franchisor more control of the business then the franchisee (big turn off for most buyers ).

    8. Buyers shy away too because they read that Snap On requires the Franchisee to work in the truck full time instead of later hiring someone to run the business for you. ( So you basically bought a job. Another big turn off for any buyer )

    9. Buyers dont like reading that you are forced into programs as a new dealer that would send you product every month you never ordered or may not need.

    10. This one is the most critical point… ALL of my potential buyers at this moment have all asked ” How do you grow a business that only allows you 200 potential customers? ” Once I give them the asnwer that according to the franchise agreement that is all Snap On is required to give you… That is a deal breaker.

    I have many many more reasons but this is what I could think of in a matter of 10 minutes typing this message. I am really upset and feel Snap On has mislead me into believing if I worked hard enough in my route it would be sellable at a later time. Time is now and now the real truth has come. I talked with a Franchise Attorney and plan on putting together a case against the company. So buiyer beware for anyone looking and beware for current dealers.

    Please check out http://www.mobiletooldealersassociation.com. for more information.

    10.

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