Top

SNAP-ON TOOLS Franchise Complaints

January 2, 2012

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.

Contact UnhappyFranchisee.com

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

Comments

203 Responses to “SNAP-ON TOOLS Franchise Complaints”

  1. AfterTheRise says:

    Guest….

    Day Drinking? Being a bit presumptuous aren’t we? You perhaps realize that I might not even be in your time zone?

    Ok.. I did type in considerable amount of mistakes. So yes, you’ve got me there. You obviously didn’t read the entire thread, as I addressing specifics in that post. And what’s wrong with a little colorful prose? Next time I will endeavor to use only the Queen’s perfect English with you. Does that satisfy you?

    You seem to be very focused on minutiae. You probably would have understood my point had you actually read the entire thread. Instead you try to enforce your opinion by insulting my intelligence. That’s OK, I don’t expect people such as yourself to actually read between the lines.

    I am aware that this site’s moniker is unhappyfranchisee, but perhaps you missed something crucial at the bottom of the article. I took the liberty of quoting it below:

    “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.”

    Forgive me if I’m wrong, but that does mean open forum correct? I suspect for you, that only means people that agree with your opinion. Nothing I can do about that, it’s totally your right to be obstinate.

    My point is simple, call a me misanthrope, but I do believe that many advocacy groups can do more harm than good. At best, they become pity parties. At worst, they become a sort of hive mind where anyone that differs with their worldview is the subject of attack and ridicule. Hence the mob mentality reference. Chest beating about class action lawsuits do nothing to help the people who have been made destitute. Are you trying to make the companies more transparent, or are you trying to grind them into liquidation? I believe no one wins in the latter situation. I think this is the point that many of the “positives” attempt to make. Yes, some of them are pompous pricks about it. But unfortunately it’s no crime to lack empathy.

    Incomprehensible ramblings? Read some of the other threads. I’ve read submissions by angry franchisees that mention everything from Communist China to rambling diatribes that list every grievance they had to deal with from the day they began their franchise, to the day in sank without a trace. And please excuse remark about the Middle Class, but I live and work overseas. I am married to one of those “job thieves”. I suppose she is not allowed to aspire to anything better. Entitlement positively oozes from many of these posts. Just because you work hard is no guarantee that your business will be successful. Certainly it helps, but it’s part of a larger mosaic.

    Hmmm.. do I also owe you for the time it took you to write your rebuttal? I think you’ll have to take that one to collections. As for the good taxpayers of the USA, I think they have a lot more to worry about than my so called “inadequate education’.

  2. Guest says:

    AfterTheRise:

    I was just calling you on your phony erudition. You touted your education and criticized “execrable prose” then out-excreted the worst of it.

    Wouldn’t you agree that the mark of a skilled and educated writer is not the use of big words and a pompous affect, but an engaging idea or position told in the simplest, clearest way possible?

    You complained about the complainers but added nothing to the very important discussion of the hidden dangers of the Snap-on franchise opportunity.

    So let’s move on to something more substantive. Of course failed tool truck operators would blame the franchisor. They were told no business experience was necessary. They were sold a dream (look at the company’s franchise marketing). They were told that Forbes rated Snap-on the #1 franchise because no one fails. They were misled in order to induce them into signing over their savings and go deep into debt.

    The truth is that Snap-on appears to hide its failures by classifying them as “reaquisitions” by the franchisor, leaving the “closures” column in the disclosure document at “0″ They appear to have tricked Forbes into naming them #1 franchise because Forbes thought there were “0″ failures. In truth, there were over 1000 franchises in three years whose owners could no longer operate.

    If the skilled and experienced business writers at Forbes were completely fooled by Snap-on’s sleight-of-hand, what chance do you think a mechanic or shop manager who has saved his whole life to buy a franchise would have? Don’t you think that person has the right to base his family’s most important financial decision on fully disclosed facts, not some slick shell game?

    You can call Jim Lager and those speaking out against Snap-on whiners and lucre-seekers if you wish, but they are putting their energy and effort into warning prospective franchisees about the true nature of this investment. Those who read these comments and buy anyway will have made a more informed decision because of them and will have to own the consequences.

    Their comments have undoubtedly saved families from financial ruin. Your comments just distracted from meaningful conversation by attacking the victims – those who were recruited, screened and selected by Snap-on.

    If you have a substantive point that you’ve been witholding, I’d love to hear it.

  3. AfterTheRise says:

    Guest…

    Ok, fair enough, I’ll make this clear. I guess erudition is in my blood, since its my essentially my job. Plus, it simply bothers me that so few people actually try. Call me pompous if you will, it really doesn’t bother me. I am who am. Touting an education? I’m not trying toot my own horn, I’m simply making a case in point. The tool franchises thrive on the uninformed. If someone hands you 523 page (I believe that was number I saw here) contract, that doesn’t speak well for transparency. I mean Good Lord, its tool franchisee contract, not a bill going before congress. This is, in my opinion, makes for a successful business arrangement… transparency.

    If you think I’m pounding on victims, you’re wrong. Why be the victims here? Why not be survivors. This is not “suck it up and drive on” type of speech. It’s just that I HATE to see the embryo of a good idea thrown by the wayside because of setback. You can only arbitrate? OK …arbitrate Snap-on until the courts can no longer ignore the painfully obvious fact that Snap-on (and all their other imitators) are setting up
    most their franchisees for failure. There will be setbacks, there will be struggles, but to give up? That’s the bigger crime than crooked franchise. Perhaps I’m looking in the wrong place, but what happened to the MTDA? Why throw a germ of a good idea away?

    Oh I think we are giving Forbes way too much credit here. I have a friend who worked as intern for Forbes. It’s chilling to hear how they come with these “Number One Franchise” numbers. They often take the gross profit as the indicator of a “successful business”. Remember Forbes magazine also once touted the likes of Bernie Madoff. Not a good indicator of objective journalism. Reacquisition… sounds too much like a euphemism, that doesn’t sound like something Forbes would overlook. Could it be that Snap-on is simply recording these franchises as “purchased”? I see from some posters that Snap-On seems very quick to write off or forgive heavy debts that franchisee’s accumulate through inventory orders. I’m not going to speculate on their bookkeeping, but I think when any franchisee goes to arbitration, they should demand to see how exactly their business was liquidated.

    I blew my top mainly because I could not grasp that Jim would believe that such a story would fly in court. Again, this damages YOUR credibility. What do you think a Judge, or better yet, Snap-On’s high priced legal team would do with a story like that? It would be ripped to shreds, and it makes every franchisee with a legitimate complaint here look like a fool. I don’t think Jim is in it for money, but to win you need to know what it is you want. Transparency, restitution, reinstatement?? I know people want blood, I did too when my business failed (not a franchise). But a clear strategy is necessary if you want to see this to an acceptable end.

    I forgot to touch on this …

    “If the skilled and experienced business writers at Forbes were completely fooled by Snap-on’s sleight-of-hand, what chance do you think a mechanic or shop manager who has saved his whole life to buy a franchise would have? Don’t you think that person has the right to base his family’s most important financial decision on fully disclosed facts, not some slick shell game?”

    This is not even a shell game, it’s affinity fraud. Most technicians have no interest in Forbes. The salesmen patting on them on the back were most likely technicians themselves. This sells more franchises than an article in a business magazine, and this what your constituents need to watch out for. Will he make a commission on this sale? If yes, get a lawyer to comb over the contract as if it had lice.

    Guest, It’s late here in the Land of The Morning Calm. Despite what you may think of me, I’m not here to bash anyone. But I do feel that Snap-on could be a good company if fine people such as yourself put steady pressure on them. As it stands right now, they have nothing to fear. Why let them win?

SHARE A COMMENT HERE:





Bottom