MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• IF we have to start at the top with danaher, lets do it. Lets post on every site possible and be heard. If stockholders hear about this, we may be able to bring change.We just have to get the word out.

• Also wondering………….

  Can anyone tell me chapter and verse of my franchise agreement that compels me to ADVERTISE for Matco?

  MY customers actually TORE OUT those ads for ‘Owning your own Franchise’ – right in front of me! Threw them away in disgust – They asked me WHY that was in my calendars?

  Pretty certain I didn’t sign on to be an “Ad Mule” – I wanted to sell tools :)

• Guest….must be back in the office this morning, good morning.

  You are right finally, DANAHER, MATCO’s big brother. You know they always say “big brother is watching”. I don’t think it so much as “selling franchises” as you put it, because none of us paid for them, its PROFIT! More PROFIT….does Danaher own any company that doesnt make money?…anwer no. You talk about unhappy and churning an burning do a google search for unhappy danaher employees…there you go my one contribution to your cause.

  Second Debbie, thanks for answering my question.Let me give you a scenerio to consider. You are in North Denver, there is a dbr in South Denver. Both are charter, geographic distributors with no rules in place, old trucks, no purchase average, nothing just MATCO on your truck. You have a $100 a week customer move into South Denver. That distributor only works 2 days, buys $500 a week from MATCO, and calls on about 30 out of the 100 shops in his area. Your customer just happens to be one of the shops he doesnt call on. Is now mad because he loves MATCO. Calls you up to go there, guess what you cant. South distributor doesnt want to go there because he is enjoying the good life only working two days a week. Guess what, you don’t get your money, you and matco miss out on sales opportunities and there isn’t a damn thing either of you can do about it.
  That’s one of the many reasons MATCO has performance standards.

• Cant answer that one Debbie, I stopped getting my calendars from matco about 10 years ago.

  Second if you are so unhaoppy why do you have franchise sales aides on your truck, I don’t and I am happy with MATCO. If a customer tells me he wants to be a tool guy, especially if he says he is tired of turning wrenches I tell him to look somewhere else. If a guy flags 80 hours a week, works his butt off, has a great attitude helps sell when he is on my truck, I recommend MATCO.
  And yes, I do have guys come on my truck and sell to other guys on the truck, and yes I treat them well. I have a few guys that easily between the them they have sold 20,000 in tools to other techs in the shop, those are called ADVOCATES, I have a lot and want a lot more, they are different from customers and clients.

• How is that ANY different than territories now? I HAVE a customer that moved to another area. The distributor in THAT area won’t go to his shop ~ still unclear on that distributor’s reasoning.

  I CAN’T GO TO THAT SHOP – MY CUSTOMER IS NOT HAPPY – THAT IS EXACTLY WHAT IS HAPPENING TO ME – RIGHT NOW

  I lose business
  Matco loses business and has LOST A CUSTOMER forever

• Guest3 ” why do you have franchise sales aides on your truck, ”

  ONLY because I was told I had to display them by my DM

• You can go collect your money, you cant sell though, but you can ask your dm to put it on your list of calls since that distributor isn’t going.

  You don’t have to have that material on your truck.

• “I don’t think it so much as “selling franchises” as you put it, because none of us paid for them…”

  The claim that distributors didn’t pay for their franchise is a dangerous falsehood “No franchise fee” and “No royalties” is simply a franchise advertising ruse that should not be perpetuated. It excuses Matco from not providing service because they gave away the franchises “for free” which is not legally correct.

  The franchise fee and the royalties etc. are simply built into the tool purchase profit. That doesn’t mean they’re not there, or any less than if they were broken out separately. I’ve posted the link to the FTC guidelines twice now, and anyone who wants to perpetuate this nonsensical myth hasn’t taken the time or doesn’t have the ability to read it.

  According to the FTC, it doesn’t matter if a franchise fee is broken out separately, included in inventory or product mark-up, if it’s a required purchase it’s all the same. If Matco Tools wasn’t charging for its franchise, it wouldn’t technically be a franchise and they wouldn’t have to comply with franchise registrations, filings, disclosure laws, etc.

  Do you seriously believe Matco goes to the trouble and expense of franchise registration and (sometimes) compliance if they don’t have to? Legally, there’s no such thing as a free franchise and claiming there is is simply deceptive, pure & simple.

• Really! Matco has performance standards. Hell I have not had a review in 5 years.

• Seriously Guest3!

  Are you a previous Snap-On distributor. Your sales tactics of having guys in a shop bully other co-workers into buying tools off your truck is what my Snap-On guy used to do. Right before he started getting recourse on all the tool boxes he bullied them into buying and led him to filing bankruptcy. Then within 6 mo. Matco hires him (the bankrupt former Snap-On distributor) to be a District Manager. Only to bring him back to his home town and throw him in my route.

  Matco is definitely where a prospect needs to be.

  RIGHT!!!!

• Maybe danaher and matco should review their district and regional managers for proper training. Sounds to me , they are out in the field doing nothing, do you think they should be retrained or fired? If matco has policies are in place and are not being adhered to, then they have a problem. If a distr has not had a review in 5 years, theres a problem, I thought we were to have reviews yearly and in your first year, reviews were done quarterly. I think the area and regionals, make up their own procedures, they terminate who they want and keep who they want.

• Guest – right on!!!!

  You spelled it out **AGAIN** and it is perfectly clear…………………

  “The franchise fee and the royalties etc. are simply built into the tool purchase profit. That doesn’t mean they’re not there, or any less than if they were broken out separately. I’ve posted the link to the FTC guidelines twice now, and anyone who wants to perpetuate this nonsensical myth hasn’t taken the time or doesn’t have the ability to read it.

  According to the FTC, it doesn’t matter if a franchise fee is broken out separately, included in inventory or product mark-up, if it’s a required purchase it’s all the same. If Matco Tools wasn’t charging for its franchise, it wouldn’t technically be a franchise and they wouldn’t have to comply with franchise registrations, filings, disclosure laws, etc.”

• Todd, nope always Matco, all the time,

  When customers sell for you, that means they trust you as an example. A lead tech walks on my truck with a recently promoted customer. Spends about a half an hour with him going over essential tools and non essentials, while I am helping other customers, not sure how that is bullying. It’s different than the guy that walks on and says Joe needs this tool.
  No franchisee fee, no advertising fee, no royalty fee, no computer fee, no truck maintenance fee, ne fee for fliers, we don’t have 50% recourse on our regular contracts, snap on has all of these plus the high prices to go with them, and oh yeah don’t forget about the 200 headcount routes.

• According to Entrepreneur, the number of Snap-on dealers is growing, from 3078 in 2009 to 3247 in 2011 (+139)

  During the same period, they claim Matco has been declining in number of distributors, from 1452 in 2009 to 1384 in 2011 (-68).

  Maybe after some costly class action lawsuits make Matco clean up its act (like Jerry did for Snap-on), Matco

  As far as the generosity of Matco’s “no franchisee fee” ploy, let’s ask the dbrs who posted their stories here… Sure you guys had your routes cut and were terminated, and sure you had a franchisor who seems more eager to flush you our rather than help you succeed, but aren’t you appreciative that you never paid a franchise fee or royalty?

  Aren’t you all glad you “didn’t have to PAY” for your Matco franchise? ;(

• Should have read “Maybe after some costly class action lawsuits make Matco clean up its act (like Jerry did for Snap-on), Matco will start growing again soon instead of churning, burning and still declining.”

• I copied from another website this ad. What guidance and on-going support did they offer? It dosen’t say you may put money out and not get a return. Wheres the honesty? How do they help you generate sales when your D.M. could not write a contract? This ad was on a website for top franchises, do you believe that? My D.M. lived about 80 miles away, how is that local training and support?

  Matco Tools is one of the top franchise opportunities out there. That’s because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start your business. Our award winning franchise program provides you with a business process that will help you make sales and generate revenue from day one

  No franchise fees
  * No royalty fees
  * No advertising fees
  * 5 week Training
  * Local training and field support
  * National Brand
  * Computerized business system
  * Exclusive Territories
  * Pre identified potential customer base
  * No employees
  * Home based business
  * National conventions at world class resorts
  * Financial assistance
  * Modest overall investment
  * SBA approved Franchise
  * IFA member
  * VetFran sponsor

• Guest were you flushed out? As you put it? You sure like to throw around legal terms rather than dbr terms…the earlier statement you made about “outlets” was the dead giveaway you have never been a dbr so you don’t have to answer this question as I know the answer.

• mailto:info@franchisebusinessreview.com

  Send this magazine a review from us guys , thay have matco ranked at 42 in large business with 1458 distributors.Tell what they really don’t know.

  Hey ADMIN, did you e-mail matco for a response and did they send you an e-mail back with a response? By the way, thanks for the support.

• Guest3 – If Guest is smart – and I’m pretty sure he is – he will NEVER tell you.

  It is almost fun for me to see how much it bugs you!

  After three weeks of this – just about anybody that can Read, can repeat a legal term.

  NONE of it changes the FACTS!

  Matco DOES charge a franchise fee – they just don’t “CALL IT” a franchise fee
  Matco IS churning distributors at a break neck pace.
  Matco IS going to court for alleged SBA loan fraud

  The documents have all been posted

  You can try to distract the conversation but, I will always be here to bring it back.

• It doesn’t bug me, I know who he is. So that will bring us to advice #2 from me.

  If you are father out there and your son went to UTI but then after seeing how hard turning wrenches is, so he decided to be a tool guy instead, but it takes your money to do it…don’t put him to work in your firm. I have only seen person succed at this because it was his money not daddy’s.

  Debbie outlet was used early on, and was used NY someone who only owned a Matco franchise because he signed on the dotted line for his kid.

  I can’t distract from the board admin cuts me off when I do, it’s funny though how you guys always avoid the topic by saying I am trying to

• “don’t…put him to work in your firm instead” is what it should have said.

• Yep snap on increasing, they just put an employee in my area because they could not fill the route, doing it nationwide, apparently they did not learn from macs mess in late 90’s

• “It is almost fun for me to see how much it bugs you!”

  I agree, Debbie. Someone who posts as “Guest3” complaining about someone else being anonymous is pretty amusing.

  Tedious and repetitive, but amusing.

• Way to divert guest, let me make this clear I don’t really give a rats behind who you are. If you read further up in the posts it was Tommy boy getting mad and calling us all pussy for not using our name, again way to divert.

  Matco tools #1 franchise. PROUD and LOUD baby!

• “Matco tools #1 franchise. PROUD and LOUD baby!”
  Guest3, you present a rational, convincing argument, as usual.

  I’m sure that any prospective Matco Tools franchisee who comes across this discussion thread will go ahead with their purchase decision based on the strong case you’ve made.

  I’m any prospective franchisee will think:

  “I know they’ve presented compelling evidence that 49% of Matco franchisees turnover and are replaced each year…

  “And, yes, even successful dbrs have had their routes cut and been forcibly terminated by Matco….

  “And sure Matco Tools has one of the highest SBA default rates in all of franchising… but this Guest2 fellow seems very enthusiastic and he says Matco is #1 and he uses capital letters and exclamation points.

  “And what the heck… even if I lose my house, my savings and my credit rating, at least my franchise fee wasn’t broken out separately…!”

  Please wear “Guest2” at expo this year so Matco will know who to thank for saving all those sales.

• I meant “Guest3″ but it really doesn’t matter, does it? they were interchangeable.

• i never could figure out why i had to pay a yearly fee for their computer programming that they used to monitor my business with and changed when ever they felt like with out consulting me. it was never to my benefit.

• Let’s see… Fee’s…

  1. What was that monthly FEE called to allow you to place Special Orders? Or pay the FEE for each special order… Or don’t be competitive…

  2. MDBS Annual Maintenance FEE

  3. Webpage maintenance FEE

  4. PSA Hold Back (I call it a FEE,as I already purchased the product, and the customer already paid an application fee)

  Those are just some that come to mind…

• is astro pnuematic considered a national brand

• From Astro Pneumatic’s website: (in part)…With over 30 years of importing product into the US Automotive Aftermarket… Our country-wide network of National Account Distributors which include Snap-on, Mac Tools, Matco Tools and Cornwell Tools….

  Note: Matco was listed ‘third’, not #1.

  Did you know Astro Pneumatic even makes some ‘Matco’ branded product? It’s the same as Central Pneumatic from Harbor Freight.

• No fee for special orders unless you were under $25.00 but shipping was free and still is. Over $25.00 no fee, no shipping. For 45 a month no minimum, why wouldn’t you do that unless you don’t sell tools.
  MDBS Fee, different than Snap On’s computer fee, they have a monthly fee for a computer to the tune of about $120 a month, far cry from out $297 per year.
  Webpage maintenance fee, only if you kept it after first year, which you are crazy to do, agree with you on that 195.00 waste of money
  PSA Holdback, only if you wrote a contract your last 90 days…you can’t drag out your termination 90 days.

  Richared, yes astro is national brand, all of the big 4 and all WD’s carry it, I think that would make national brand.

  Thanks guest, your facts are wrong though about matco having worst success rate for SBA, mentioned before…or would that be asked and answered?

  Guest…just the facts….MATCO Tools #1, you may not like it, but its the FACTS!

• WOW that sure is a LOT of FEEs!!!!

  What about that Webpage annual maintenance fee? We can’t put anything on there. We can select from a few lame ass choices – but it is ALL Matco propaganda

  The ONLY thing we control is the Picture with name and address

  Customer gets redirected to Matco’s main page anyway or told to call us – every check the traffic on YOUR page

  I’m the ONLY visitor to my site – because it is useless

  Do we have a choice to opt out? probably not

• OK guest3 – I still want answers on that PSA charge back

  SO, if/when Matco kicks me to the curb – ANY contracts I’ve written in the last 90 days will be charged back to me.

  OK, SO – what then??

  I get that the amount will be added to the mountain of money I already owe Matco.

  Does my customer get a letter stating his box is paid?? Does my customer get a letter telling him he doesn’t have to make any more payments??

  Am I suppose to collect the money from the customer? MORE important – WHAT IS THE CUSTOMER TOLD????

• Dear guest, I probably would not buy tools from someone with no knowledge of a tool truck. Since you seem to have no knowledge of tool business any discussion of “real facts” with you are pointless. Although you seem to be quite proficiant at using the copy functions of internet explorer. Also remember for the rest of us we have received a fdd, and signed a legal contract with matco. I still have yet to see where matco has done anything in retribution to a DBR without it being covered in a contract. In the business world “selling paper” aka contracts always come with a fee. My father in laws business which is not a franchise has to pay a fee for his computer. The special order club just saves you freight on small orders. And if your going to be on the web you will have to pay a fee. So these are actual normal fees that ALL businesses pay. What I would love to know guest if you are not a DBR, what is in it for you. Oh by the way Matco knows who I am and has already thanked me for my posts.

• Debbie you can cancel your webpage at any time. I did mine years ago.

• Guest2 stated… “I still have yet to see where matco has done anything in retribution to a DBR without it being covered in a contract”.

  My position is that EVERY Distributor under Matco has VIOLATED the Contract (for Franchised Distributors). Why have they singled out good, honest Matco representing Distributors and others continue to go on their merry way, albeit still violating that contract?

• Debbie, Yes if you have written contracts and you are terminated within that 90 day window then its charged to your open account…the money you owe them. I honestly dont now if the customer gets a letter, I would be lying if I answered that question in any way. But if it was me, I would make damn sure I lasted 90 days after writting my last contract. But if for some reason that didn’t happen then I would call the customers that it happed too, explain that you just got charged back and they actually owe you the money now. I would offer a settlement, maybe to cover your cost, or just collect a weekly payment, either way I would try and get them to pay more to pay it off quicker.
  Now this is a pure guess on my part, because I don’t try and guess why they do things, but I think they probably have this policy in place so that way people just dont go out and convert all of their TP accounts to PSA accounts then leave. This is truly a guess on my part.

  When was your last contract written? If your are worried about this they must have sent you warning letters, if so one of them should have given you time to address their issues and given you time to fix the issues. It’s not your truck, I can tell that’s in compliance, has to be purchase average or non payment?

• Former…nice to see MATCO was listed as Astro’s 3rd customer, makes me feel better. I would hardly compare Astro to Harbor Freight.

  Guest haven’t commited on Expo yet this year, Vegas ins’t a big draw for me. Well at least Ceasers Palace, was pretty sick after the last expo there. Why are you going? If you are, then hey, I am in, maybe we could go have some Tea. PF Changs really close, nothing better than lettuce wraps.

• Converting TP to PSA, not only violates the contract, its likely against the law, based on the wording of the contracts.

  I had a new customer show up last week and told me about how his TP was transfered when he went from one Matco Distributor to another… Just write a PSA on a top box that never was. Thats right, just right a contract for a top box for the amount of TP owed, get your credit from Matco and everybody is happy, heck maybe even give your customer a little kick back for accepting the credit terms. Oh, thats right, he doesn’t need the kick back, because he intended to default on the loan anyway.

  And I assume in some way Matco supported this, by just looking the ‘other way’.

  Let’s see how is that worded in the contract?

  11.4 Immediate Termination Rights.
  (F) commits any fraudulent act in connection with any of his/her agreements with Matco,

• Many Central Pneumatic items at Harbor Freight ARE Astro Pneumatic items. I know, I have a Harbor Freight in my town and I am offered a lot of it in for trade. I carry Astro Pneumatic on my truck for those ‘cost conscience’ customers.

• I think I’ll just draft my third letter to Ernie Lauber
  tonight. I demand to know the exact procedure. I want
  to know exactly “what” my customer is told. I’m STILL
  writing contracts, because I’m STILL doing my job!
  I want to be certain Matco isn’t double dipping!
  And – nothing negative should be told to my customer,
  but that won’t happen. Since NOBODY can tell me what
  will actually happen – on the customer’s end – color me dubious!

• Guest3 writes: “Oh by the way Matco knows who I am and has already thanked me for my posts.”

  Well, Guest3, at least you admit to patheticly shilling for the man. I hope you get more than complimentary lettuce wraps for all the hours of *ss-kissing you’re putting in here. We definitely appreciate your contribution to the comment count. 700+!

  And we appreciate you not really raising any credible excuse for Matco’s churn & burn practices.

  But one thing I’ll conced is that, yes, you definitely know more about tools than anyone else here, you being one and all. :)

• Guest a little confused? or bad at math?
  States a 49% turnover every year. Well lets see, 1400 distributors and based upon your own admission 200 leave every year for one reason or another. Not quite sure but I don’t think your math adds up.

  Now lets talk about your SBA failure rate. Best Franchise.org has the top 100 for failure rate. Tilden for Brakes car care has the highest at an alarming 85.71% failure rate. Now you go down 32 spots to Cornwell at a 41.82% failure rate, then 67 spots down you find MATCO with 32.81%, Not sure how MATCO is leading that catagory.
  I did find one Catagory though, the most SBA loans. Yep 320 of those bad boys. Next closest was Cottman Tranmission with 165 loans and a 49.09 % failure rate. Next is Blimpie Subs with 162 loans and 40.75% failure rate. Golf Etc. 82 loans at 40.24% failure rate, All Tune and Lube 81 loans at 46.91% failure rate……hmmm MATCO had MORE loans by DOUBLE, but less failure rate.

  Guest you can get mad at me all you want, no hearsay here, just the facts. MATCO Tools #1.

• “Matco knows who I am and has already thanked me for my posts.”

  So Matco corporate is following this discussion?

  You know who else is, I bet? The sales teams at Snap-on, Mac, Cornwell and anyone else selling against Matco I wouldn’t be surprised if they’re including a link here in their dbr recruitment emailings.

• Hey guest learn how to read. Was me not guest3. The only reason I’m on here is I couldn’t stand the outright lies I saw once Debbie had invited me. I get how you look at Matcos “churning” during the three worst years in all business history since the depression. If I were you guys and worry about all the “governments” money being burned during the last three years why don’t you look at Chevrolet, countless number of banks, insurance companies that the government has bailed out during the last three years. I think this is small compared to that. The last three years for anyone in business has been extremely dificult for anyone to manage. You should ask the 6 competitors from different tool comapanies that have failed in my areain that time frame. I have faced over 14dbrs from the different companies over the last 11 years.

• Standard Franchise Fees: For Snap On Tools

  Initial license fee $5,000 $15,000
  Computer software license fee $770 $770
  Standard Franchisee weekly remittance for products and services purchased from Snap-on 25% of balance from previous week minus payments and assigned accounts plus new invoices; in addition, 100% of net amount of other changes/credits

  Monthly license fee $102.00

  It’s expensive to be a Snap On distributor, that’s probably why they are filling routes with employees now.

  Computer software maintenance fee $26

  Franchise finance program loan payment No payment for first 90 days; thereafter, $840/month-$981/month for a new person; $1437/month-$1678/month for Gateway franchisee becoming Standard

  Franchise finance program loan prepayment fees 5% (3% if loan is to finance an additional franchise) of outstanding principal balance on date of prepayment unless cease being a franchisee or otherwise employed by Snap-on

  RA loan payment $655/month-$756/month

  RA loan prepayment fees 5% (3% if loan is for an additional franchise) of outstanding principal balance on date of prepayment unless cease being a franchisee or are otherwise employed by Snap-on

  Credit and lease program and open account payments To be determined
  Transfer fee 50% of then-current initial license fee, current $7500
  Renewal fee 50% of then-current initial license fee

  Van lease and maintenance fee payment $1,397-$1,559/month van lease plus
  $216/month maintenance fee

  Van lease prepayment fee 1-3 months’ lease payments

  Van lease termination fee Up to one month’s lease payment

  Late charges Under franchise finance loan 4% over regular rate. Under snap-on credit van lease program 5% of amount due (plus interest at 10%) for payment delayed more than 10 days or $10.00, whichever greater

  EC paper contract processing fee $150 for any month in which Snap-on Credit allows to submit an EC contract on paper rather than electronically or remit EC collections manually rather than electronically

  Manual check processing fee $50/month of fail to pay Snap-on electronically

  Merchandising program $70-90/month (Monthly Fliers)

• Guest – don’t be jealous about tools. I am what I sell jack**s. At least I can follow a conversation, present facts correctly, evidently do math correctly, and many other things. I have brought up many points and still no response, you must be dumbfounded by my knowledge, or just dumb. You make the call.

• Guest you are bad at math, and you can’t read. I didn’t say anything about MATCO thanking me.
  I already told you about the 1000 posts, Tommy Boy needed a toaster so I told him I would help a brother out.
  Speaking of Tommy….Tommy we miss you:) Guest isnt getting facts straight, and he is getting mad at me for saying MATCO Tools #1.

• So guest2 and 3,

  How many Matco Distributors have you lost in your District over the last three years? I know you don’t care you are only worried about number 1 and not some poor smuck who got stuck with a list of calls.

  Also, by looking at your post who would want to be a Snap-On distributor? I guess that is what you do when you do when you know you are wrong you try and make your competition look bad.

  Don’t worry I am sure you are convincing others to buy into Matco. NOT!

• Former…Yes Danaher does make Craftsman’s Professional Line, however the materal is different.
  Now, since we are on the subject, I noticed you failed to bring up that Kobalt Tools from Lowes are made by Snap On. Hmm.
  Plus Stanley, who owns MAC makes Husky tools for Home Depot, Proto Tools, and Blackhawk.
  Since I apparently know all, I just thought I would share my wealth of knowledge with you, but I am sure you already knew that, just didn’t want to share.

  Guest why the criticizm, tools are my life, it’s what supports my family, I better be good at it or no food for the kids. Have to stay above 80% NPA :) Look, Listen and Remeber, always learning.