MATCO TOOLS Franchise Complaints
MATCO TOOLS Franchise Complaints: Have you had any dealings with MATCO Tools or the MATCO Tools franchise? Please share a comment about your experience – good or bad – below, as well as advice for those considering investing in a MATCO Tools franchise.
Also read: FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud
We received the following franchise warning about the MATCO TOOLS franchise opportunity. According to commenter “TOMMY CHEUNG” :
“STAY AWAY FROM MATCO TOOLS. THEY WILL SELL YOU A BILL OF GOODS,WHICH IS NO GOOD.
“RUMOR HAS IT ,MATCO MAKES MORE MONEY SIGNING NEW FRANCHISES THAN THEY DO TAKING CARE OF THEIR CURRENT ONES.
“DARYL PRITCHETT AND MIKE RAMEY WORK TOGETHER TO SIGN YOU UP AND THEN KICK YOU TO THE CURB. I AM WORKING ON A LAWSUIT AGAINST MATCO, HOPING TO TURN IT INTO A CLASS ACTION SUIT. YOU MAY CONTACT JERRY MARKS AT MARKS AND KLEIN LAW FIRM AT [redacted], IF YOU ARE INTERESTED.
“I INVESTED ALOT OF MONEY IN MATCO AND AFTER 3.5 YEARS THEY SHUT ME DOWN. WHEN THE ECONOMY SLOWED IN 2008,THEY PUT ME OUT OF BUSINESS.
“I ALSO SPOKE TO A PREVIOUS EXECUTIVE, WHO CALLED ME, AND STATED THATS THE WAY MATCO DOES BUSINESS. STAY AWAY FROM MATCO TOOLS AND RUN LIKE HELL WHEN YOU SEE THEM. I REPEAT DO NOT BUY OR INVEST IN MATCO TOOLS…”
Marks & Klein is a legitimate franchise law firm that often represents franchisees in lawsuits against their franchisors, but we haven’t verified with them whether a lawsuit against Matco Tools is in the works or not.
WHAT DO YOU THINK? IS MATCO TOOLS A GOOD FRANCHISE OPPORTUNITY, A FAIR FRANCHISE OPPORTUNITY OR A FRANCHISE SCAM?
If you’ve had dealings with Matco Tools, please share a comment below.
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
I think Mr. Gilmore is going to have a very sound New Year resolution…………………….. STAY AS FAR AWAY FROM MATCO TOOLS AS POSSIBLE !
Tommy the only thing you and #2 have in common is the bathroom
guest3 wrote……..”Dm, if you are truly a dm, what dm had the least sales to plan in November”
Kind of an odd question for a box selling champion ? Seems only another DM would be privy to that info?………..hhhhmmmmmm.
Craig,
First, if you create a large customer base and you reinvest into inventory to serve that customer base you have to get a bigger truck. If you are as wise as your comments you know that customers will (Usually) only buy what is in front of them. And if you think they will order from you rather than buy it off the other guy who has it on their truck I can understand why you folded up shop and started another profession. If you have read my posts you would understand that I never failed in my business Matco Management . I do take blame for not getting an attorney when they stole my customers. The reason I am on hear is to make sure that other guys looking at the Matco Franchise know the truth about Matco before they make a mistake. I have NO DOUBT that Matco will clean house and make Distributors in the future have a chance of succeeding or they will steal the money and disband the company. I know I am glad I am not a distributor now. If I was successful now I would be worried about Matco’s actions over the course of the next few months.
Not really, but you noticed he hasn’t answered either, that’s the bad thing about a site like this random people can post, then when you have a guy that has been with company for a while you can trip up IMPOSTERS like DM
Guest3,
Evidently reading isn’t your strength. I stated that my cost of inventory on the truck was 5 times my inventory when I started. Thus 43000×5=218000. This is just my cost of inventory in less than 2 years and it was actually closer to 240000. My purchases from Matco in 2005 were over 500000. My aim is not to impress but prove to those who might view this sight that it does not matter how profitable you make their company their goal is NOT TO KEEP YOU IN BUSINESS!
Craig Wood wrote: “If you bought stock in company XYZ and it lost money you would except the risk of losing money. Would you file a lawsuit on the company for their stock losing money?”
Right on, Craig! About time someone told it like it is here!
These dbrs are like those annoying whiners who invested with Bernie Madoff. You know some people actually got a nice return from their investment with Madoff just like you did with Matco.
It only stands to reason that anyone who would call a lawyer or the SEC on Bernie Madoff is just a whiner who won’t take responsibility for his own investment decision.
Give yourself a big, well-deserved pat on the back!
OK guest3, what DM had the least sales to plan?…………….. Why are you hanging out here for hours at a time instead of peddling Taiwan made tools?……………..How did you find the time to copy & paste MatcoTools#1 50 gazillion times?
Hey you are right ! Imposters are easy to spot !
Guest,
I don’t know if your a distributor or not. Did you ever sell tools to someone on Time Payment and they skip out on you? Not pay you to the agreed terms?
If its happened to you I would suspect you just walked away from the deal and blame yourself for selling tools to that individual. It was your fault you trusted him to pay you. It was your fault that he did not abide by the contract terms.
Seriously,
Bernie Madoff? Isn’t he in jail for pretty much the rest of his life for stealing and cheating people. You are absolutely right about him making some people profitable from his decisions just as Matco makes some Distributors most of whom have “territories” versus “list of calls” and the ones they choose to cater to. I mean Matco isn’t stupid they can’t screw everyone then they would have noone to back them. Are you really insisting like Bernie that Matco is innocent. Bernie tried that too! LOL
Time Payment Accounts:
Yes it is true. If you sell to someone on a truck account you are taking a risk. If that person agrees to a $30 per week payment and does not pay is that your fault for lending him money or their fault for stealing your tools? Bernie Madoff probably has a different view on this subject matter now.
Oh guest you hurt my feelings you got to give me more credit than that, it was straight out of trial lawyer 101, you should know that. When you know someone is bluffing you ask them a question they can’t answer, I never said I knew the answer.
And seriously the copy and past took 30 seconds, I just said Matco tools #1 about 10 times and pasted, but I learned my lesson from admin I can’t do that anymore if you give me your law firm email address I will send it to you with my real email address
The bottom feeders are at it again! Look out here comes Jerry’s kids..
Regarding Bernie Madoff,
On December 10, 2008, he suggested to his sons, Mark and Andrew, that the firm pay out over $170 million in bonuses two months ahead of schedule, from $200 million in assets that the firm still had.[13] According to the complaint, Mark and Andrew, reportedly unaware of the firm’s pending insolvency, confronted their father, asking him how the firm could pay bonuses to employees if it could not pay investors. Madoff then admitted that he was “finished,” and that the asset management arm of the firm was in fact a Ponzi scheme – as he put it, “one big lie.” Mark and Andrew then reported him to the authorities.[14
Bernie got 150 years in prison how long do you think Matco should get.
Guest 17…lol
Todd:
I was being sarcastic about Madoff. I agree with everything you’ve said and give you a lot of credit for telling your story here to warn others.
Ponzi schemes need to have some visibly successful people in order to grease the wheels and keep the con game going. Even Madoff paid out some nice returns early on so he could screw people out of billions later and wreck their lives.
How preposterous it would be if the very few who actually made money from Bernie Madoff would stand up and defend him and attack the victims for being irresponsible and not taking responsibility! Yet that’s what these Matco apologists are doing – blaming the victims of a rigged game.
So far on here there are credible allegations that Matco engaged in fraudulent practices regarding SBA loans.
There are credible allegations that Matco may have violated federal laws regarding the 14 day disclosure rule.
There is a report that alleges that half of all distributors are regularly terminated, forced out of the system, or fail only to be replaced by the next unfortunate dbrs destined for the same fate.
The Matco apologists of the Old Boys Club pat themselves on the back as if they somehow earned their sweet routes, charter agreements and special treatment. The truth is, guys, that Matco would need to maintain some successes in order to keep the churn and burn of the other half going.
But don’t be too giddy. If the successful dbrs here can have their territories cut, accounts taken, and then be terminated, it can happen to you, too.
Hmmm…. With a new CEO and a bunch of lawsuits, bad press and harsh scrutiny on the horizon, it’s not unrealistic to think that some of those sweet routes that the Old Boys Club members have been sitting on like old fat hens could soon be chopped apart and redistributed in order to stem the rising failure rate.
Think about it… If half the existing dbrs fail and the other half are holding their own, what are their other options? They COULD come to the conclusion that there are really only about 900-1000 viable routes and just let attrition get them to that level. OR they can cut accounts from the most successful dbrs and give them to more marginal dbrs in order to bring their average purchases up and keep them from failing.
I guess it’s no wonder the OBC is working so hard to keep the current injustices in place.
Won’t the old hens of the OBC be clucking up a storm on here when that starts happening!
Quick question??
We have 3 options for payment terms to Matco
7 days
14 days- eligible for bonus
21 days- Amount due to ship
SO if I pay under the 21/Amt due to ship- am I
Considered on Hold???
Yes! You will be put on hold. Unless you can work it out with your account supervisor or there is or was the option of taking your money that you owe for tools (excluding what you owe Matco for start up) and doing a 10 week turn on your existing balance and watching what you purchase for the next 10 weeks. So, if you owe 50,000 you can’t pay. Matco will split it up to 5,000 a week for 10 weeks and you have to pay that plus what you purchase that week or they put you on hold.
You know, I am not angry or jealous at all of successful distributors I was one and I can honestly say if I had never had my route cut I would be singing Matco’s praises today. Because I would be in the TOP of Matco Distributors and have blinders on my eyes not wanting to look or think that the company that is taking care of me would screw other people. But, as you well know I am all too familiar with Matco’s tactics when it comes to Franchises. I repeat, before I had my route cut by my Regional Manager (He fired my District Manager) I was purchasing $9000 per week and on a pace to be in the top 10 and servicing more than 95% of my route plus the customers I thought were secured through my District Manager. You would think Matco would be in love with me not kicking me to the curb.
Sounds like the OBC club may be crumbling, slowly as we speak. I hate to hear that, but matco needs to make it the same for eveyone.There should be no favortism, but there is.Everyone should be treated the same.Thats the problem, there is alot of favors for those special ones, like larger territories, nicer areas,etc.
great :( All this time – AS I WAS TAUGHT – YEAH it is ideal to pay the 14 day terms –
****BUT**** I WAS TAUGHT – IF I NEEDED TO PAY MY TOOL BILL UNDER THE 21/AMOUNT DUE TO SHIP – IT WAS OK
Yeah, cause I’m getting grief from Stow saying I was on hold so many weeks – I WAS NOT – my tool bill was paid, and usually under the 21 day terms, because I was TAUGHT that was OK………………………………ugggg
Tommy the good old boys club you refer too was what Todd belonged too. Geographic routes 800 customers they get dropped down to 325 like you and I they don’t survive because they are used to cherry picking, pulling up to a shop not even having to walk in, we have been complaining for years, but you know what you can’t force people to sign, I know you want too though…
I never belonged to “the club” (OBVIOUSLY). I did work 14 to 16 hrs a day and serviced at least 95% of the route Matco gave me and 100% of the new shops I picked up with my District Managers approval. Hardly “Cherry Picking” when you have a List of Calls instead of a “Charter” or “Territory”.
Got to have a lot of respect for someone who hides behind the name of Guest?
Guest, are you scared to put your name out there like the rest of us have? Either man-up or go away.
That refers to all of the guest.
Sorry if I hurt anyones feelings, I tell it how I see it.
I don’t believe we are getting the word out fast enough . Same people posting here. We need to hear more horror stories about matco screwing up other peoples lives,marriages, bankrupt,etc. Lets get real loud,text away, tell everyone, put banners in your vehicles telling everyone about this site.
Sorry, I don’t have to answer ANY question or prove anything
You’re just fishing and want to distract from what I said. Sorry you don’t
like what is happening. Can’t blame the failed DBRs for not liking it either.
Some of us really do work and don’t bother to check this site every 2minutes
But I figured it was an important bit of information to share
If you fish with a minnow can you catch a whale?
Dm, you don’t have too, but you also proved you can’t, no I like to find the truth, and your just trying to get people fired up. Hey I don’t agree with Matco about most things, this sight is all about fishing anyway why do you think jerry started it?
Tommy why you apologizing?
Just didn’t want to hurt anyones feelings, I am harsh at times.
Oh, me too, but we are big boys you just have be careful since you are jerry’s spokes person….lol
Bottom line, look at what has been done by us signing with matco. The turnover, The lies, The misleading, The madeup paperwork, The deceitfulness, on and on we could go.I hope the FEDS come after them, send the FBI in, send the IRS in, someone needs to look at their records. What about not being given 14 days to review docs before signing. I cant wait for them to request those docs. Jerry, I think I deserve a raise for making your life easier. GO GET EM JERRY.
Remeber guys and gals, speak how you feel from the heart, dont make anything up that you can’t backup. Tell us from your personal experiences. Document what happened,when,where and what time.Account for any eyewitnesses.Keep all doc’s sent to you from matco.Do a timeline if necessary. Just a reminder, because we will need all this for court. Keep posting and keep talking, loud and be heard.
Here’s a review from a site called Program Critique. Tommy also posted there.
“February 8, 2008
Reviewer: Joe Harnit from Hemet CA.
Review Title:: Matco Tools Betrayed Me and My Family.
Review: I was a distributor for Matco Tools pyramid based scam. They take your money and promise you the world. In my case I took out a loan and payed in full but I should have financed in house so I could have done to them what they did to me. ”
“I was sold the biggest tool box you can get by a shallow man that I thought was my friend and would be there for me and my family. As it turns out he turned his back to me and my family. ”
This was from back in 2008. This stuff has been building up on the Internet till now there’s a critical mass of anger toward Matco.
Maybe that’s why the number of Snap-on dealers has been increasing every year since 2007 but Matcos #s have been declining. Karma is a b*tch, isn’t it?
We need to go to garage journal.com and other sites and refer them to this site. We need to hit all the automotive sites and posts.Lets go,go,go.
“We need to go to garage journal.com and other sites and refer them to this site. We need to hit all the automotive sites and posts.Lets go,go,go.”
Good idea, Tommy. What about stock market sites on public companies. Post links under Danaher Corporation to let them see what they’re investing in?
Tommy isn’t it 14 days after receiving the fdd?, not after receiving the docs. Your right facts .
Guest DM is not a DM. And I am still waiting for your email address to your law firm.
I recently wrote to Ernie Lauber regarding my intention to form a Distributor’s Association. I received a letter back just yesterday.
Mr. Lauber states:
“We, however, don’t feel that a Distributor Association is required as we have MDAC, which are selected thru an election process in each district, with one representative sitting on the Regional Council for each Region. Those Regional Representative, also known as the National MDAC Reps, meet twice a year to discuss issues that Matco needs to improve upon to help or Distributor Teams. If you were active in this area, we feel it would satisfy your needs, since it’s a proved concept managed by very well established Distributor Teams. Since 1992, MDAC has helped us make numerous changes to enhance our ability to serve our Distributor Teams more effectively and improve their productivity and satisfaction. Obviously it’s your choice.”
In response I’ve sent a letter stating:
Mr Lauber, certainly you know that only a few of the very many issues raised by distributors every get discussed by MDAC. For other distributors who don’t understand what you do, let me explain. Each distributor has to submit an issue to his MDAC rep. That rep presents it to the regional MDAC that has many issues that it has to choose from. When only one or two are selected those issues are submitted to the several regional MDACs who then select among those that are submitted. So, Mr Lauber, we understand that the selection process lets very few of our complaints get through because the way you and Matco has set it up is like an upside down ice cream cone – – a very few of the issues get to Matco management and then nothing is done anyway.
More than that Mr Lauber, do you think it is enough for those precious few distributor issues to be discussed only twice a year? What happens to the other 363 days. Don’t you think issues of importance to distributors should be dealt with more often than twice a year? Matco issues invoices every week. How about answering distributor problems likewise? After all, you get your money so shouldn’t Matco management be responsive on a weekly basis too?
No the reason that you don’t feel as distributor association is needed is because Matco management fears the criticism it is just beginning to receive in this blog. You want to keep distributors in the dark, making them feel that the problems they have are their own fault when really the problems are Matco created.
In today’s modern internet age, why shouldn’t you be responsive to us on at least a weekly basis? Are you too busy going to meetings and having cocktails that you can’t devote the time to solve the many problems that exist? Shame on you. Try telling that to your wife and children that I will deal with your problems twice a year.
Don’t underestimate us. We work hard and solve problems. We will form an association and make you deal with the legitimate problems we have but that you and Matco want to try and sweep under the rug.
Why don’t you show this letter to your wife and children and then tell me what they have to say.
Shame on you for thinking we are all so stupid.
Your very conduct is typical of someone who sits in an office all day and thinks he knows what it is like to be out on the road. However, more than that, it is your arrogance in treating us like you do that makes it vital that we unite and form an association. It is permitted by law and we intend to form it.
Yes but you should change the name Debbie because reading some of the lawsuit stuff that Jerry has posted, a quiznos franchisee was sued by quiznos because he started a quiznos association and used their name and it was determined by the courts to be unauthorized use of the name quiznos…. Just a thought. I think I would have mentioned a solution like, once a month the mdac reps get on a webinar conference call to discuss the issues, once a week too much once a month perfect, and no need to fly and meet just do it on webinars, should be done and needs to be done.
In this modern age you want Webinars. The stats are in: Webinars are fine for distributing information to a large group, but not for interaction.
You want to get something done… Meet face to face. You can’t tell the lies or try to deceive as easily face to face. You seem emotion face to face, you just see words with the webinar.
If business so good for you guys, going to the twice a year webinar can’t be due to the cost of meeting face to face. Its because when we see the emotion on your face, we know its a deceitful lie. And that you lack the conviction to address the problems.
Former you obviously didn’t understand me. I don’t work for Matco just call me current distributor, buy I am on mdac. Twice a year meetings is not enough.
Webinars are modern day, they weren’t even around a few years ago so not sure why you are questioning them unless you live in light speed or something. A once a month webinar with each region per call would be very beneficial to HHS distributors, and easily moderated. Unfortunately I don’t have super powers to read someone mind to tell if they are lying so face to face means nothing to me.
I served on MDAC for 6 years and participated in webinars (not just Matco) for more than 5 years. Remember Matco was still using DOS in 2001 / 2002. I was a MDBS Beta Tester since its inception. Matco’s technology is not leading edge.
As a distributor you know the importance of that face to face relationship you have with your customer. It is ‘relationship’ sales. You don’t have to have super powers, but you do ‘read’ your customer each and every time you see them. That is no different in ANY business relationship.
Why do we have tool shows? We can just order over the internet, show me a video with several pictures, have an ‘operator’ standing by….
At MDAC we asked for a bulletin board so ALL distributors could post their suggestions/comments for ALL to see. Many things are hidden in the layers and filtering of the MDAC process.
Are you still voting on the top 10 issues to be presented to Matco?
No it’s not, I think windows is just a dressed up dos.
Yes but if you did monthly webinars and then 2 face to face at least you would open up more communication
Yes still top ten, but we always have sub titles, to each top 10, so you end up with top 25 basically.
I would rather skip the expo and order, last expo made a comment/suggestion to hue guy that works in the dungeon at Matco and he started arguing with me over nothing, finally just walked away. Have never missed an expo…yet
I just read the post about MDAC. What a crock! MDAC is a joke! I don’t know how many times I brought up the fact that probably 8 or 9 items out of each order from Matco was resulting in PDI at full list to me. Of course, you could call in and they will credit you but I always wondered how much of my inventory actually came off another distributors truck. I know alot of the 5000 dollars in tools Matco sent back to me was PDI that they sent to me as new. I remember one time I got an MD1000 that was suppossed to be new and when I opened up the neat battery packet it had corroded batteries in it. That’s when I realized there were scratches on the face and a gash in the plastic in the back. The plastic sleeve in the battery packet had scotch tape on the back. Obviously, a churned Distributor had been displaying it to customers and when Matco shut him down he packed it up neatly and sent it back to Matco. Since Matco made 15% on it they tried to make 30% by sending it back to me at full list. Another Matco trick of the trade.
I don’t think mdac is a joke, I think a lot of people, buyers and product managers at Matco have no idea what goes on in the field so when you bring up something they don’t know how to respond because they are clueless, that is why I am so optimistic about gilmore coming back
Todd, I hear ya!
MDAC is just a marketing tool for Matco to ‘sell’ franchises. Read Ernie’s response above. Pure BS.
In six years (i was in) we continued to fight the same issues over and over. Matco would tell us their resolution to the problem and the problems were always still there.
As for true changes to the system based on MDAC input, sure as long as it didn’t cost any money or take resources to inact.
One of my examples: (I have many too) I sent some overstock chrome sockets back Matco, they sent them back stating they were ‘used’. They were BRAND NEW, but that was how bad the quality was.
I stated it elsewhere, I could guarantee when sending broken returns to Matco for credit, they would short my credit memo for !0% EVERY TIME. Always some BS reason. Lets see… 1500 distributors, $1000 in warranty returns, less 10% = $150,000.00. What…every 2 -4 weeks?
And I hear tell some people sent Nashville cookies in their returns :)