“MAC Tools screwed us” states a MAC Distributor in a video that warns would-be franchise owners from owning a MAC Tools mobile tool distribution franchise.
(UnhappyFranchisee.Com) In the video [which has now been taken offline], Cory & his wife Michelle tell how MAC Tools sold them a tool truck route (at an investment, thus far, of $130,000) without telling them that three prior distributors had failed with the same route.
They claim their MAC District Manager (DM) had no concern for their success, and was only interested in collecting a “huge sign up bonus.”
Are you a MAC distributor or former distributor? Please share your opinions and experiences with a comment below. If you are willing to take a short survey, see the link below.
Cory: My name is Cory and this is my wife Michelle. I am a Mac tools distributor and this is how MAC tools screwed us.
Michelle: They started off by painting a beautiful picture of how life would be like as a distributor; being your own boss, running your own business, having more time to spend with your family and having a much a larger wallet. We invested over $130,000 and Cory is yet to draw a paycheck after 14 months. We are struggling. The DMs paint a great picture because they are thinking of the huge sign up bonus that they will get.
Cory- Mac did not tell me that there were 3 prior failed distributors on my route.
They claimed that there was tons of support; I received no support from MAC Tools, my RM or My DM when I needed them!
MAC took away the MAC card 8 months in, which means no financing for customers. Especially on tool boxes so I could not even compete with the competitors.
Michelle: They put me in a route knowing that there was an independent dealer selling the exact same products for much lesser prices and again I couldn’t compete.
There was even a light that Cory sold to all his customers that was advertised as a MAC exclusive product. A month later it was out in the Canadian Tire flyer. He sold it for $133.00 and CT for $20.99. We paid $95.19 as distributors for those. Customers were furious and his DM did nothing to help him. Cory lost a lot of money and people’s trust
MAC expects you to put each customer on a Time payment plan so the tool is paid off in 5 weeks. But MAC you wants you pay them within 30 days, if not you will be put on hold and that means no tool orders shipped. Most trade’s people cannot afford to pay a large tool off in 5 weeks. But we have to pay MAC. There were even orders placed on our behalf that we didn’t order. It is not humanly possible for a distributor to do this alone ….that is why they want the wives to be involved.
Cory: we were really taken advantage of and now we could lose everything. Don’t make the same mistake that I did and get screwed by MAC Tools.
ALSO READ:
MAC TOOLS Franchise posts on UnhappyFranchisee.Com
Mobile Tool Franchise Issues & Index
MAC Distributor’s Wives Share Stories of Deception, Hardship
MAC Franchise Owners Claim They Can’t Compete (Slideshow)
ARE YOU FAMILIAR WITH THE MAC FRANCHISE DISTRIBUTOR OPPORTUNITY? PLEASE SHARE YOUR OPINION BELOW.
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…
Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…
View Comments
Ok, this data is from 2012. These are the default rates on sba loans which is a good indicator of failure rates. Cornwell-39.22% Matco-35.09% MAC-30.77% Snapon- 9.8%. All 4 are well above striking out on your own in any new business.
David,
I am not sure and I don't know how to research this but I was told back around 2010 that there was a change in how the loans with Mac Tools default. The district manager told me that because of the high failure rate with new distributors, the only way for Mac to be able to strike a deal with the banks for loans is that if a distributor/franchisee fails within the first two years the bank has full recourse against Mac for the remaining balance of the loan. A fellow distributor of mine had a Wells Fargo loan with a remaining balance of over $70K. When his position was terminated Mac immediately bought the loan within the first 30 days. So in all practicality his loan never defaulted with the bank. He now owes Mac not Wells Fargo. Because of that, the DM also said they were having more of a push to make sure guys made it past the 2 year mark so Mac wasn't on the hook. Simply said, I don't believe that the sba loans defaults are even close to what the actually distributor/franchisee failure rates are. They only represent the ones that default to the bank. Of the 18 guys that started out the year in my district in 2012 five failed, three guys had less than 2 years with Mac. Is there anyone else with info out there that can back me up or set me straight?
I'm pretty sure that buying the loan does not change the nature of the loan. It's the same as my VA loan. When the bank bought it from the loan originator it remained a VA loan. So it shouldn't affect the default rate. My point is that buying a franchise still gives you a better chance than starting from scratch.
David W. did you know that money is being pumped into banks all across the United States so that people like you can get a franchise loan? Did you know that normal Americans like you can't get that money. But if your a franchisor those tax payer dollars are ready and waiting. I received a loan for my Matco franchise in Arkansas through Suntrust Bank in Atlanta, Ga. Guess who got Community Development Financial Institution (CDFI) Funds released from the New Market Tax Credit (NMTC) to the tune of $395 million dollars from 2005 to 2009?
Actually 2005 to 2012.
David,
To back up my previous statement I was able to get ahold of 2 of the 3 distributors that were in less than 2 years. Both stopped paying as soon as there distributorship was terminated. Both loans were immediately bought by Mac Tools. Neither of them had anything negative reported on their credit reports from Wells Fargo. Also interesting is that neither of them had negative reporting from Mac months after their termination. So neither of them would be reported as a defaulted loan. It has been roughly a year since mine was terminated and there is no reporting on mine either. You seem like a smart guy. Look at the THOUSANDS of negative comments against all of the tool companies. It not just a couple pissed off guys. None of us have anything to gain. We are here to bring awareness and warn good people like yourself. You must be somewhat concerned or you wouldn't keep coming back to this sight. Do the safe/smart thing. Walk away while you can! What ever you decide, good luck!
David,
Also in you comment you said "When the bank bought it from the loan originator it remained a VA loan". Mac Tools is not a bank and wouldn't report as a bank. That is why they use Green Sky for end users and Wells Fargo for franchisee's.
David,
I live in Arkansas and owned a franchise in Arkansas for 6 1/2 years. From 2009 to 2012 Matco has churned 15 franchisees in Arkansas alone. In 2012 there were 19 routes in Arkansas. You do the math! 19 routes 15 churned! In ONLY 4 years. ALL these franchises are the same. BALE OUT while you still can. Here are their names Michael Johnson, Joseph Duran, Timothy Hodge, Brent Freeman, Randy Reinking, Paul Chun, Kenneth Rathburn, Malcolm Wells, Jimmie Wise, Richard Richardson, James Bunch, Todd Peterson, Jamey Tate, Walton Johnson.
One or maybe two of these 15 got out happy. The rest are not happy!
David,
Those SBA loan failure rates are phony. Matco wishes they only had a SBA loan failure rate in the 30's. I just proved to you above what failure rates are really like.
How much responsibility should a franchisee bear for his success or failure? To try and lay the entire blame on the franchisor is almost as bad as Todd ' conspiracy theories.