MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• Mr. Bergman , you’ve put plenty of non essential info in your posts. the point is financial situation for me is dire …something you’ve not dealt with for a while obviously . WE ARE NOT ALLOWED TO SELL BITS OF OUR ROUTE!!!!!! YOUR COMPREHENSION NEEDS A TUNE ASWELL!!!!! the other guy was right, go post on “happy Matco yes man.com “

• silly me………….
  a $10,000 tool box order sent to Matco with a computer generated order – was built WRONG – despite CORRECT computer order……………..
  a tool box and locker combination ordered – and keyed differently ///////
  large credit contracts sent in but NO tools sent to me……………..

  Yeah, yeah, it is ME, of course,,,,, I’m NOT working hard enough……………

• IF ANY OF YOU HAVE BEEN IN BUSINESS FOR ANY AMOUNT OF TIME YOU WOULD KNOW WHO THE FORMER PRESIDENT OF MATCO WAS. HE HAS CALLED JERRY MARKS AND MAY BECOME SPECIAL COUNSEL TO THE CLAIM
  AND ALSO HAS MADE ME AWARE OF PROBLEMS INSIDE MATCO. MATCO AS A WHOLE IS NOT A BAD COMPANY, IT JUST HAS ALOT OF BAD APPLES IN IT, WHICH MAKES THEM RESPONSIBLE AND ACCOUNTABLE. WHEN YOU OPERATE A COMPANY AND YOU HAVE BAD EMPLOYEES, YOU GET RID OF THEM AND MATCO HASNT. LETS JOIN FORCES, LET EVERY FORMER DISTRIBUTOR KNOW ABOUT THIS CLAIM, MORE PEOPLE,STRONGER CLAIM.THE FAILURE RATE AS RECORDED BY THE SBA, SHOULD TELL YOU SOMETHING.IF THIS IS YOUR BUSINESS, WHY DOES MATCO RESERVE THE RIGHT TO PUT YOU OUT OF BUSINESS? YOU ARE MORELESS A SUB-CONTRACTOR TO THEM.GO GET THEM JERRY. THEY KNOW WHAT YOU DID TO SNAP-ON, LETS DO THE SAME TO MATCO.

• Kevin:

  You have the right to your opinion and you have every right to express it here. However, I think that you should take a step back, put aside your personal experience for a moment, and take a hard, objective look at the situation. Your like a man who just finished a big steak dinner saying “World hunger? That isn’t a problem! I’m stuffed!”

  Take a look at this list of the worst SBA failure rates:
  http://www.unhappyfranchisee.com/failure-rates-of-the-10-most-popular-franchises/

  From CNN on SBA failures “Matco Tools franchise – 36%: “Tool manufacturer and distributor Matco is the riskiest investment on the top-10 “most popular” list, with more than one third of its SBA-backed loans going bad.”

  Matco Tools had 321 SBA backed loans averaging $90,131. 36% defaulted (so far – that could keep rising) for a total default of $28.9M.

  This isn’t a matter of good Matco distributors vs. bad Matco distributors. This report is saying that Matco is the worst investment IN ALL OF FRANCHISING. The worst.

  Please explain to the taxpayers of America that $30 million of their hardearned money is gone, along with the savings and creditworthiness of 36% of all who invested, but that there’s no serious problem to be fixed because you happen to be doing OK.

• Tommy- Since you can’t seem to remember who the former president of Matco was, let me help you. His name was Doug Pertz, and he was replaced by Tom Willis in 1996. Sorry, but I highly doubt he called you, and I also highly doubt that his experiences from 15 or more years ago have any relevance to today’s issues. Honesty and accuracy will do far more for your case than exaggeration and fabrication.

  Guest- If you have read my posts, you would know that there is no fat here. I am not satisfied with the current state of my business, but it is not Matco’s responsibility to make me prosper. That’s up to me. I’m not doubting your SBA figures, but you did contradict yourself. You said Matco was the riskiest investment in the top 10 “most popular” list, then said Matco is the riskiest investment IN ALL OF FRANCHISING. So which is it? Accuracy please, not exaggeration. Also, some posters above said financing was only available through Matco. If so, how would the SBA be involved?

  When I first considered Matco as my carreer, I researched figures such as these, considered the risks, and moved forward with my decision. If the result was failure, the fault would be mine. Sorry, that’s just the way I see it.

• KEVIN, I DONT NEED TO EXPLAIN OTHER THAN I HAVE HIS NUMBER AND HE HAS CONTACTED JERRY MARKS, GOOD LUCK TO YOU WITH MATCO, IT A PERSONAL BEEF WITH THE FIELD REPS AND MANAGERS AND I PLAN ON SEEING THEM AND MATCO IN COURT

• http://www.glassdoor.com/Reviews/Matco-Tools-Reviews-E25070.htm

• Kevin, you are sounding kind of like a corporate shill now, bending over backwards to justify the unjustifiable, nitpicking word choice.
  As for accuracy, they are the SBA’s numbers, not mine.
  As for accuracy, CNN called Matco the riskiest investment, not me.
  As for accuracy, the post (not me) listed the 10 highest defaulting franchisors as ranked by most SBA loan defaults from ALL OF FRANCHISING, as opposed to those with the highest percentage of failure but with low total number of loans (ie Sam’s Deli with one loan and one default would have 100% default rate).
  Trying to nitpick word choice to people who stand to lose their homes and livelihoods is what makes you look like a shill. I repeat, know one cares that you are doing well and you did it all by yourself like a big boy.

  There’s a widespread problem with the business model and the lawsuits and negative press are about to start raining down on the Matco brand unless something is done. The sh*tstorm is just beginning, brother. (hope you weren’t planning to sell your route when you retire).

  Look at it this way: If a car company was selling a car in which 4 out of 10 either stopped running or exploded, the government would shut them down until the problem was fixed. There would likely be criminal charges and jail time if people sold those cars knew 4 of 10 would fail. There would be civil lawsuits out the wazoo.

  If you really are a distributor, be glad your car runs and hope the brand has any value left by the time you want to sell. Enron & Penn State were respected names once too. If you ARE a corporate shill, hope your claims hold up in your deposition.

• Kevin- Champaign-Urbana, Bloomington-Normal, Illinois. No wonder you wanted to cherry pick your route ! Both college towns.$$$ Then you have ADM. $$$ Not to mention all of the other corn, soybean trucking industry.

  You had enough working capital to finance your brother’s truck ? As I had mentioned before, YOU ARE IN A GOOD MARKET !

  Try to work one of “fleabag” routes that 80% of DBR’s are fighting with for one year and see how fast you high tail it back to Central Illinois where techs actually get paid a decent wage.

  http://o.professionaldistributormagazine.com/print/Professional-Distributor/Brothers-keep-flatlander-techs-in-tools/1$335

• Kevin, – Not sure which side you are cheering for now. Man you are completely making THEIR point. The more you blow smoke – the more Clear the distributors side becomes! Quit your campaign of self indulgent kudos, ice that arm that has to be sore from patting yourself on the back – look up the word empathy, and let these guys vent! Seriously, what is in this for you?

• I was a distributor for 6.5 yrs. I was a top distributor 2004, 2005 and 2006. My highest sales were in 2005 when my District here in Arkansas was #1 and I was 41 out of over 1500 distributors. So why then would Matco allow a District which had not been #1 to have a new Reional Manager who terminates the District Manager who created a #1 district?

  Then come after two of the top 50 distributors who helped make their district #1 by forcing them to give up shops which their District Manager had approved them to call on. No they were not on Drop/ Add forms which I was never trained in Stow, OH on. I never knew Drop/ Add forms exhisted until I had my route decreased by my Regional Manager. All I know is my inventory was at 225,000 plus and I had just purchased a new 26′ 2006 Peterbilt when they made their demands and also threatened me with my franchise if I didn’t comply.

  They took almost half of my established customers and gave them to a new distributor. Subsequently, that distributor started his own route going in a different direction and abandon shops which I was forced to surrender. He also didn’t collect on a lot of customers that I had sold too and was given NEW shops that were not in his area and in mine when my district manager told me I could call on them.

  My district manager told me that his hands were tied and it wasn’t his decision. This distributor also only lasted a little over one year. So over the course of the next two years my route crumbled. I went from 350 customers to less than 250 in 2010. I knew things were bad at the end of 2008 so I communicated to my district manager twice in 2009 that I needed a resurvey of my route to give me more customers to work with. On July 12, 2010 I received a letter from Matco saying I was not at 80% of the National Average and I had 90 days to cure.

  Coincidently I had a previous Snap-On competitor who had been a Matco District Manager since 2008 after he had filed bankruptcy within 6 mo. of becoming a Matco employee interested in having a route in his home town which is where I live. After receiving this letter I called my District and Regional Manager and informed them that this was a mistake. That I had been a loyal distributor for 6 yrs. and for them to terminate me without giving me more customers or resurveying my route was wrong.

  So on July 26, 2010 I received a survey from my District Manager stating I had MAGICALLY acquired 328 customers to call on and that i was only servicing 67%. So after realizing that this survey was a lie because it had shops on it that I had never heard of, were closed and never on my route list I told my Regional Manager I would be contacting Corporate.

  Corporate never returned my call but on July 28, 2010 I was given over 100 new customers to call on. After my 90 day cure period my District Manager showed up out of the blue and told me when I asked him what he was doing on my truck that I was doing a good job and when I asked about the letter he told me to forget that it ever existed. Still concerned about the 1 yr. written on the letter and mentioning that my slow time was coming, December and January, he assured me that if their was a problem he would let me know and work with me.

  But on Feb. 11, 2011 I received a phone call with 4 feet of snow in my drive that I was being terminated by Matco.

• The truths about Matco Tools Franchises.

  Matco profits from distributors by:
  1) Distributors who purchase tools from their company.
  2) Distributors who return that same product for overstock. Distributor gets back their cost minus 15%.
  3) Distributors who fail at their business. Returned product minus 15% and take back only what they want too.
  4) Reselling this restock at full list to other Distributors.
  5) Making claims processes and return of broken products (engine hoists, jacks, scan tools, roll carts, tool boxes) so difficult that Distributors avoid doing it.

  Matco has multiple agreements when it comes to franchises.
  1) Some have “List of Calls.”
  2) Older Distributors have Charters or Territories
  3) Some who have worked in Management get free inventory to start a route plus other benefits.

  Matco’s Franchise Agreement will say:
  1) If you don’t agree with how your treated you can drive to Ohio and arbitrate your case.
  2) If you disagree with arbitration you can then sue them but only in Ohio where their franchise laws protect their big corporate tail. By the way it also says that you agree that it might not be a fair judgement in Ohio.

  Your Head Count will have close to the min. of 325 customers on your “List of Calls” Matco knows this is a low number because they want you to go out and establish more customers so they can start another guy on a route when they take them away from you. 325 customers in a none established route is a joke. I promise you will not be in the top of Matco Distributors unless you have around 500 min. to call on because the top guys every year have that many. If they say they only have 350 on their list of calls they are paper trailing some of their other accounts.

• My phone is [redacted] if you want to discuss any of my experiences.

  We don’t allow posting of contact information. If two commenters want to exchange contact info, they can each email us at UnhappyFranchisee[at]gmail.com to coordinate. Thanks ADMIN

• I am blown away by the things I’m reading. If I only knew before I started.

• It is mind boggling what these folks have done, the scope, and range. SYSTEMATIC FRAUD. IF THERE IS LITIGATION I WANT IN !!!!!!!!! I’m calling Marks NOW!!

• Guest- You changed all the parameters again. Not arguing you data source, but please read your posts clarify what you’re talking about.

  Gary- You seem to have a real longing for personal info about me. Hope you didn’t spend too much of your route time looking it up. You, of course, blew it when trying to find where my route is. Keep looking, computer boy. Here’s a few more bits of my personal info to hold you over. My first 6 years were spent along IL RT 16 in a 50 mile long stretch of small towns that were 50-75 miles from my house. (Look it up) So much for your high paying jobs. I drove 800 miles a week, and finished in the top 10 for three consecutive years in this “fleabag” route. Point being, high wages are not neccessarily required for a good route. High wages are usually accompanied by higher cost of living, with no more money left for tools than lower wage areas. And if you think Illinois is a good envronment for a small business, you are seriously uninformed.

  By the way, I am very proud of that article, and also very happy that I could help my brother start a strong, successful route. Sorry it bothers you.

  Josh- If you really read all my posts, you should be able to see that I was merely pointing out that I’ve had ups and downs in my business, and now is one of the down times. My arm is fine. I don’t have a problem with these distributors venting. If they feel they were wronged by individuals at Matco, then they should persue whatever solution satisfies them. But they should go forward with accurate, legitimate complaints without trying to ruin Matco in the process. Myself and 1400 other distributors would like to keep selling tools. That’s what’s in it for me. The points I’ve made here are nothing compared to what will come up if this case actually sees the light of day.

• well kev, when i started two years ago there were over 1500 distributors……. so now only 1400 – guess matco even acknowledges lost distributors
  again, what is in this for YOU???
  for a guy that isn’t out anything, and claims has nothing to gain – you sure spend a lot of time and energy………….
  BTW – the case now in federal court will ruin Matco, not me……
  http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/

• Josh- Didn’t know the exact number of distributors, was guessing. You’re probably closer. I just told you what’s in it for me. Read my last post. So it’s really your desire to ruin Matco? It’s always been my goal to try to improve what we have, rather than tear it down. I guess that’s the difference between a successful attitude and whatever happened to you.

• Now who is NOT reading ????
  It is NOT “my” desire to ruin Matco, the case in federal court will take care of that……….
  ….it has NOTHING to do with me, I just am referencing the news – the NY Post article
  and since YOU are always picking apart every detail and number folks post – thought you wouldn’t be “guessing” at numbers
  seems like you are on a real power trip, always have to have the last word…….. it is very immature

• Josh- I think anyone reading your post would make the assumption that you’re all for ruining Matco. Sorry if I misunderstood your view. So if this has NOTHING to do with you, why are YOU here? I’m a distributor who wants to see Matco succeed. What’s in it for YOU? If you respond are you immature?

• “Kevin also gives back to the company through his 15 years as a Matco Distributor Advisory Council representative, a process of feedback from the distributors on the street back to management. Matco’s 71 districts each have one MDAC rep, who meet four times a year.

  “We give … a perspective that Matco’s management doesn’t see,” said Kevin.” – Professional Distributor article

  Kevin:
  I would submit that you may be a successful tool distributor, but you have been a dismal failure as an MDAC rep. You can blame Josh and the others pushing for change, but I would submit that you and the MDAC are the ones who set up Matco for ruination.

  While more than 1/3 of Matco distributors were failing and defaulting on their loans, what were you and the old boys club discussing, how you want your steaks done or whether to have another round?

  You and the MDAC didn’t do your jobs and bring the critical challenges facing distributors to corporate management and demand action – which was your job. You had your head in the sand then and you still do now.

  Letting these issues get this far out of hand are as much your fault as anyones. If you had done your job instead of smoking cigars, currying favor, and stroking each other’s egos, Matco wouldn’t be about to get its *ss kicked all over the courtroom and the media.

  Thanks for your diligent representation of the interest of distributors.

• Kevin, if you can’t see that what has happen to these people is wrong. I don’t know if anything will change your mind. I have read and now heard by phone of people losing everything because matco does not care about them. I hope it does not happen to you but it has happen top 10 guys also. Good luck to you and all the rest of us.

• “Gary- You seem to have a real longing for personal info about me. Hope you didn’t spend too much of your route time looking it up. You, of course, blew it when trying to find where my route is. Keep looking, computer boy.”

  Not really, I could care less about your “personal info”, you’re not that important as you think you are. I didn’t spend any time off my route because Matco cut me off at the knees as they have done to thousands of others over the years. Besides, it took all of about 35 seconds, they have this thing called Google, in case you didn’t know.

  Your route doesn’t cover Champaign-Urbana area as Professional Distributor Magazine states ? Wow, that’s a pretty huge typo if you ask me ! Keep “spinning” your wheels Kev, there are more of us coming out of the woodwork everyday.

• Guest- You have absolutely no idea what MDAC is about, nor what happens at the meetings. Maybe YOU should have gotton involved so you could have changed the world of Matco, instead of sitting back as “Guest” and depending on everybody else to hand it to you. Your clouded view is pathetic, and probably a large part of your failure. Just for your info, in 17 years on the council, I never ate a steak, had a drink, or smoked a cigar. And as far as Matco getting it’s ass kicked in the media, the first I’ve heard of this case is right here, after Debbie invited me. It may go somewhere, it may not. Either way, I’m for improving this company, not tearing it down.

  Paul- I guess the difference is that I never expected Matco to “care” about me. This is a business, and feelings have nothing to do with it, at least that’s my opinion. I run mine the best I know how, and sometimes that’s not good enough, but I’m not expecting anyone to hold my hand.

  Gary- I’ve never thought I was important to you or Matco. Just thought it was odd that you made a point of publishing my last name, and attempted to describe where my route was. I didn’t spend any time looking you up….

• I DONT ANYONE IS INTERESTED IN RIPPING MATCO APART, WE AS FORMER DISTRIBUTORS AND DISTRIBUTORS ALIKE, JUST WANT MATCO TO ADMIT THEY HAVE MADE MISTAKES, TAKE CARE OF THEIR MISTAKES, MAKE US WHOLE AGAIN AND IMPROVE THE WAY THEY SIGN FRANCHISES. LET FRANCHISEES RUN THEIR BUSINESS ANFD IF THEY FAIL THEY HAVE NO ONE TO BLAME, BUT WITH MATCO STICKING THEIR NOSE WHERE IT DOSENT BELONG, THEY SHOULD BE THE ONES TO BLAME.IT STATES ON THE BACK OF THE TRUCKS, ‘DRIVE YOUR OWN BUSINESS’, IT SHOULD SAY ;DRIVE ONE OF OUR TRUCKS AND LET MATCO DRIVE YOUR BUSINESS’.MATCO HAS TOO MUCH SAY IN OUR BUSINESS AND THEY SHOULD BE THE ONES TO TAKE PART IN A FAILED FRANCHISE. LIKE I SAID, GO GET THEM JERRY.

• Tommy- In my opinion, you have the most productive attitude on this matter of anyone here. Revenge usually doesn’t result in progress, but level heads and reason will win out more times than not. If this is handled properly, Matco may be a better company for everybody involved. If not, everyone loses. Good luck with your fight.

• Kevin:
  You’re right. I have no idea what MDAC was doing while more than 30% of those it is to represent were losing their life savings and livelihoods, or were having territories cut or being terminated. Perhaps you could explain.
  Then again, you don’t perceive that there’s a problem, so how could you represent those who were experiencing those problems?
  There’s a perception that MDAC started out good but became a tool for corporate to find out distributors positions and use it for their own gain, that MDAC became a sham, that long termers like you used it to curry favor for your own gain. How do you think those perceptions arose?
  Your lack of empathy and unwillingness to acknowledge and complaints as valid, along with your longtime involvement with MDAC, speak volumes as to why that organization is perceived as nothing but a corporate tool.
  I eagerly await your list of all the actions MDAC has been taking over the years to reverse one of the worst failure rates in all of franchising. Do tell.

• To All:
  I have read all of the comments on this site and I have decided that Kevin is a self centered *ick. He refuses to see that there is a problem. I believe he is part of the problem and would make a great ceo. As he said in one of his post “It’s a business”. Screw the people that make the business run. I have own a large business with over 100 people working with me not for me. In my business the people came first. They grew to think of the business as there own. Which made it sucessful. I was able to sell the business for several million. But before it sold I made sure that the people that helped build the business were taken care of. If more companies cared more about the people then the bottom line maybe our country and the people on this site would be better off. I hope all of you get what you deserve and especially you Kevin. I hope you really get what you deserve. I just wish I could be the one to give it to you.

• I’ m done. I’m just going to sit back and watch what happens. Good luck to you all.

• So I read over the class action suit. So basically you are mad that you took a loan, with a variable interest rate, didn’t read the paperwork that would tell you it was variable. Now if the bank would not supply you with the paperwork, why in the world would you sign the loan? If your upset that no one told you the fail rate is 37% (lower then Cornwell btw) why do you not do research yourself? As someone that wants to run a business, do you expect someone to hold your hand every day?

• Anon, You obviously didn’t read the complaint because it has nothing to do with variable interest rates. Try reading the press release version:
  http://www.unhappyfranchisee.com/franchise-lawsuit-matco-tools-scam/

  As I read it, the suit alleges that Matco Tools gave fraudulent, unrealistic 3-year projections to the bank in order to get the franchisee a loan that never otherwise should have been approved. Both TD Bank and Matco Tools knew the franchisee was likely to fail, it contends, but didn’t care because they’d each get their money. Matco would get the upfront franchise purchase and then be able to resell the franchise to someone new. TD Bank would get its money because the SBA would pay off the loan with taxpayer money.

  Sounds a lot like the mortgage crisis, with banks scheming to make money on the failures of their own loans.

  The franchisee didn’t know the game was rigged because the projections were kept from him so he didn’t know they were inflated. The suit alleges that providing the projections at all violated FTC regulations.

  If their allegations are true, this has nothing to do with holding hands or not taking responsibility. It’s out and out fraud, just like Bernie Madoff committed.

• Guest- My name ain’t Jerry, but I assume your comments were aimed at me. Your ignorance of the MDAC process is astounding. Not that it will do any good, but I will try to explain it so even you might understand. My job as an MDAC rep was to convey the issues and suggestions of MY district. Not mine, the district’s. Nothing more, nothing less. I was not on the council for YOU or YOUR district. If the distributors in my group would have asked me to bring your mentioned issues to the council, I would have. They didn’t. Aparently I must have done a satisfactory job for them, since they kept electing me to the council for 17 years, until I chose to pass it on to another distributor. Again, maybe you should have gotten involved.

  Dave- Is name calling really needed? Was that part of the governing style of your highly successful business? And about that self-centered thing, you may want to re-read your post. I would guess that you are not, nor have ever been, a tool distributor. What you don’t seem to understand is that we, as Matco distributors, ARE NOT EMPLOYEES of Matco. We don’t need to “think” the business is our own, it IS our own. Some (NOT ALL) distributor failures can be attributed to the fact that they were not able to make that distinction, to rely on themselves rather than a boss to make them successful. So Dave, What do I deserve, and what would you like to “give” me? I was able to make my business work. So do I now deserve bad things to happen to me? Do you wish me failure since my business hasn’t failed?

  AnonSense- There is one key word in your comment: “alleges”. IF Matco lied or withheld information from the potential frachisee, then they deserve whatever they get. Your reasoning for the alleged fraud is that Matco could sell and resell the franchise, but you missed the part that MATCO DOES NOT SELL FRANCHISES! There is no “scheming” since there is no money to be made on the franchise sale, since there is NO SALE! The only money Matco recieves from a new distributor is the price of the tools in the start-up inventory. If a distributor fails, or decides to separate, he can return the inventory to Matco at 85% of the purchase price, or sell it to whomever he pleases. So if a distributor has a starter inventory of say, $60k at cost, but goes out on the street and sells nothing (not likely), the maximum loss is $9k. Not pocket change, but a fairly small loss compared to most other businesses, if closed. (There was, and still may be, a 6 month out program that returns 100% on the stock). Matco is not making big money on a 15% restocking charge, considering the labor it takes to do the restocking. They are also SUPPOSED to re-sell the returned stock to other distributors at the same 15% discount, but I’m not too sure that always happens. There will be other money lost, such as truck lease payments and business supplies, but if SOME sales were made, there is some offset. The problem is having the sense to get out before there’s nothing left to sell back. I have not read the complaint, but if it actually says the bank and Matco “knew the franchisee was likely to fail”, that would be a major flaw. 37% failure rate, if accurate, IS NOT GOOD, but it’s not enough to say “likely to fail”. I would call 63% success rate “likely to succeed”. If I won the lottery 63% of the time, I’d be rich. When I started my business, after all the research and the decision to take the risk, I still felt I had at least a 40% chance of failure. Don’t quote me on this, but I believe nationally, small business failure rate is around 2/3rds. I am absolutely not saying that there are no problems here, but basing anything on a 37% failure rate will not help this case.

• I THINK WE ALL KNOW MATCO HAS ITS PROBLEMS,ALSO WE KNOW SOME DISTRIBUTORS HAVE CAUSED THEIR PROBLEMS.POINT BEING, THEY WAY MATCO DOES BUSINESS IS WRONG. WE NEED TO RIGHT THIS WRONG. I ENJOYED MY TIME WITH MATCO AND ALL SAID, MY PROBLEMS WERE WITH THE DIST REP AND THE AREA MANAGER. ALL COMPANIES HAVE PROBLEMS,AND MATCO KNOWS THEY WAY THEY SIGN FRANCHISES IS WRONG. WE HAVE TO JOIN FORCES AND LETS GO AFTER MATCO , DIST MANAGERS AND AREA MANAGERS. I WAS TOLD BY A DISTRICT MANAGER OUT OF TAMPA, I COULD SIT ON MY AZZ AND MAKE 75K A YEAR BARELY WORKING, I WAS TOLD THIS WHEN HE CAME TO TOWN AND HELPED ME LOAD MY TRUCK. I WILL TAKE THE OATH ON THIS AND SWEAR WITH MY HAND ON A BIBLE. THIS COMPANY HAS BEEN MISLEADING PEOPLE FOR A LONG TIME.WHEN IS THIS GOING TO STOP? WE NEED EVERYONE TO TELL EVERYBODY HOW MATCO DOES BUSINESS AND ARE COSTING TAXPAYERS MONEY.LETS BE HEARD AND STOP MATCO IN THEIR FOOTSTEPS. GO GET THEM JERRY.

• I hope others will respond to Kevin’s last comment because it literally made me feel ill.

  Here’s a guy who was supposed to have been representing the interests of franchisees for 17 years calling the worst loan default rate in all of franchising “not good.” “If accurate,” he says, as if the SBA doesn’t know what its own loan default rate is. Of the worst loan default rate in the industry he says “I would call 63% success rate ‘likely to succeed’”

  The part that really makes me sick is where he says the failure of people who have worked 80 hours a week, have their homes, kids college funds, retirements and livelihoods on the line is the same as them having scratched off a losing lottery ticket.

  Site admin can you please change the word “Jerry” to “Kevin” in my last comment. I want to make sure he gets full credit for his repulsive comments.

• The bottom line is Matco makes a financial gain from new starts collecting interest, and several other “fees” that are charged before the new DBR even hits the streets.

  Recruiting is a HUGE priority for Matco. It has to be to keep a fresh supply of warm bodies for the “grinder”. Did you ever stop to think why?

  1. Current distributors are rewarded with a free toolbox or 5K worth of free tools off of their OPA for each new guy they help put in business.

  2. There is an ad on the back of each and every catalog to become a distributor, just fill out an application and they get a free ratchet.

  3. There is usually a whole page ad for recruiting in each sales flyer that is passed out.

  4. Recruiting flyers are passed out to every DBR to hang in their truck to fish for new leads.

  5. Distributors are “rewarded” at district meetings for hitting the high mark on the “lead-o-meter” for whoever brings in the most leads.

  You always hear the argument that the reason for this is that current DBR’s are retiring, or have health issues, or transfer to a new territory. PAAALLEEEASE !

  If you think that district managers do not get a commission for every new body they put on the road then you are really in the dark.

  Bottom line part II, Call Jerry Marks, finally someone is in OUR CORNER !!

• Guest- I don’t type so well, so it takes a lot of effort for me to explain things to you. I said 37% failure rate is NOT GOOD. I’m not able to make the letters any bigger so as to get that across to you. Matco’s SBA default rate may have been that high 22 years ago when I got my loan- don’t remember, but I chose to accept the risk. Are percentages hard for you to understand? Did I ever say that scratching off a lottery ticket “is the same” as starting a Matco route? I was merely saying that 63% success rate would be considered likely to succeed. This may not be acceptable to you, and I would prefer to see it better also, but I ask you- what is acceptable to you? 70%, 80%, 100%?? Where is the breaking point where a risk such as this should be taken? How could success possibly be guaranteed? I also have not seen any figures here stating the time frame of these defaults- was this in the first year, 5 years, or total? I would also like to know what the failure rate is for full-equity distributors, and Matco financed distributors. Those figures may be higher or lower- I would just like to see the overall picture, and the courts will want that, too. Again- let me be clear- If Matco lied and defrauded incoming distributors, they deserve whatever the courts throw at them.

  Gary- I’m not aware of any “fees” that Matco charges new distributors. Please explain. Money costs money to borrow, whether it comes from the bank, or from Matco. Business loan interest is a fact of life, and I’m not going to bash Matco for charging interest. You are not required to borrow the money from them to start your business.

  Recruting is a huge part of running this company, and I believe it’s too large a part of the DM’s job. That needs to be changed. Our district was #1 I believe 4 or 5 years running, but our DM was only #1 once. Some of those years he didn’t even place in the top 15. The reason was recruiting. His primary purpose should be to support the existing distributors, and our DM would agree. However, I don’t have a problem with rewarding distributors for supplying leads. Historically, the best and longest lasting distributors come from distributor leads.

• Even Kevin admits “Recruting is a huge part of running this company” and yet still the number of Matco distributors is declining. That means that with all of the advertising $$ and effort put into recruiting, all of the newbies they sign up can’t keep pace with the numbers that are failing or otherwise going away.

  Amazing that Matco just invested in an expensive recruitment website, spends a ton on lead generation advertising, bonuses, commissions, etc. It must cost thousands to recruit a single distributor, yet Kevin claims they don’t make a cent on new distributors. Is that why the markup to established distributors is so high? Is that why monthly minimums have to be so high? To keep feeding the massive recuitment effort?

• If you have not read this please do. It is the complaint filed in court. It sheads light a lot more then just bank loans. It is a shame.
  http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/

• Its funny how people who fail always want to blame someone else, no matter what as you read these posts all the people that are failng have an excuse for every situtation. If you dont agree whit their opinion all of the sudden you are attacked. I wonder if you put this much effort and passion into your business if you would have succeeded.

• Paul

  Thank you for sharing. Very informative read. This thing is like an onion, the more layers you peel………………………….

  Stay tuned

• OK, I think it is time to clear the air a little as some of the smoke that is blowing, is just that………smoke
  FACT – there is a suit in Federal court alleging SBA loan fraud AND HAS RECEIVED media attention at a little publication, The New York Post: http://www.nypost.com/p/news/business/td_bank_tool_case_LFdZzYpQKpxieyeMSf6OMP
  it has also been highlighted on the web at
  http://www.bluemaumau.org/matco_franchisees_allege_fraudulent_sba_loan_scheme
  FACT – I am not part of that litigation – fact is, I have not retained counsel
  FACT – MY district had 15 distributors, including myself in Aug 2009 – SEVEN OF THOSE DISTRIBUTORS ARE GONE, I AM PROBABLY GOING TO BE FORCED OUT NEXT = 53% FAILURE RATE
  FACT – When I signed my franchise agreement I was given documents that showed Colorado had 26 active distributors – TODAY, 14 OF THOSE ARE GONE
  = 53% FAILURE RATE
  So, while some might consider 37% SBA Loan failure rate “not bad” or translate that into “63% success” A FAILURE RATE OF MORE, MORE, MORE THAN HALF IS UNACCEPTABLE
  FACT – NOBODY, nobody, nobody invests their life savings, every last dime they can borrow – into a small business venture with the intention of failing
  FACT – ANYBODY that has more than $100K invested – works their butts off trying to make that venture succeed
  FACT – while Matco will have to answer to Federal prosecutors in a Federal law suit THEY WILL ULTIMATELY HAVE TO ANSWER TO THE **HUNDREDS** OF DISTRIBUTORS THAT INVESTED AND LOST EVERYTHING
  FACT – I personally find it reprehensible that persons that are completely removed from my plight become so indigent and choose to take advantage of the situation for their own self promotion.

• I also think it is important to note, yes, I did start a Facebook page,
  https://www.facebook.com/pages/Matco-Tools-Distributor-Association/293379297348041?skip_nax_wizard=true
  I also invited distributors to join a Distributor’s Association, a right protected by the FTC
  http://www.ladymatco.com
  I also have received a lot of negative personal attacks – posts suggesting that I haven’t worked hard enough or just ‘complain’ too much
  It is also important to note, while HUNDREDS of distributors may have been “thinking” the things I posted, none did………….. Mostly because there was no forum available, and I now understand – Matco did not want distributors talking
  I also would like to note, I DID DO MY HOMEWORK – however; little information was available, had my husband or I read ANY of the comments, posted here alone – doubtful we would have signed
  *********I had the courage to be a woman in a man’s business, drive a mountain route over passes at 11,532′ in elevation, and navigate 700 miles a week – in good and bad weather…………………….. I WILL CONTINUE TO HAVE THE COURAGE TO STAND UP FOR WHAT IS RIGHT.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,despite the efforts to be silenced. I have had my Matco orders held – despite large PSA credits posting and paying my tool bill, I’ve had roadblocks put up so that I can no longer contact Customer Service via email directly * and negatively affecting my ability to do my job – cell reception is very poor in the areas of my route, communication via email is crucial * I’ve been told to email a GENERAL email box. ******These actions will not discourage me, only make my voice louder****

• LETS ALL GO AFTER MATCO, DEBBIE YOU NEED TO CALL JERRY. THIS COMPANY IS DECEITFUL IN ITS PRACTICES WHEN IT COMES TO SIGNING FRANCHISES. WE NEED TO BE HEARD LOUD AND CLEAR. E-MAIL OR CALL ME BEFORE ANYONE GOES OUT BECAUSE I CAN TELL YOU WHAT TO EXPECT FROM MATCO, ALSO I CAN TELL YOU HOW TO DISABLE YOUR COMPUTER FROM MATCO, SO THEY CAN NOT GET YOUR INFO. THEY WILL TRY TO PULL ALL OF YOUR INFO OUT OF YOUR COMPUTER,BEFORE THEY KICK YOU TO THE CURB. JERRY AND I HAVE A WEBSITE THAT WE HAVE NOT RELEASED YET. I AM WAITING ON HIS OK. JUST SO YOU ALL KNOW , I WAS IN THE TOP 200 ONE YEAR, I HAD HIGH SALES ALL MY YEARS, AND IN 2008 WHEN ECONOMY GOT TOUGH , THEY KICKED ME OUT.I WAS DEDICATED, WORKING FROM SUN UP TO SUN DOWN, I LIVED AND BELIEVED IN MATCO, HAD HIGH REMARKS FOR THEM. I WENT TO EXPO,ATTENDED ALL MEETINGS. WHERE WAS THE ADVISE IN 08 WHEN ECONOMY GOT BAD, MATCO WAS NOWHERE TO BE FOUND. THEY WERE SUPPOSED TO BE SUPPORT FOR YOUR BUSINESS. MATCO STILL HAS DISTRIBUTORS ON THE OLD AGREEMENT, WHY HAVE THEY NOT FORCED THE VETERANS TO SIGN NEW AGREEMENTS?

• Thanks to all of you……….I was just about ready to go with a Matco franchise, my contact is supposedly putting together a business plan and calling on Monday. However after discovering this site, I am contacting him to let him know that I am not going to go through with it. I already had some concerns and questions and it would have taken every dime I have plus a loan that I was quickly told “Matco” would handle to just get started. Thanks again. I thought I was fixing to do something great. At 61 it would have been a huge mistake.

  Don

• Don, you have probably made the right decison. Of course if you were on a sight looking for people to say bad things about matco then you already had your mind made up, now you have an excuse. I know when I was looking into the business I was finding successful people to ask, not people who failed at the business. This business takes a lot of hard work and dedication, if you have any doubts or lack of confidence you will not make it. I say this having been with MATCO since 1999. Nothing worse than training your customers to buy MATCO then having them go into a route that is being serviced by a person who should not have come into business, only to get that customer back and see that now he/she is buying from a competitor. For the record, my dad became a matco distributor at 61 and now at 72 is still going!

• Tommy…you cant “FORCE” people to sign anything. Charter distributors do have a different agreement but make about about 1% of the population of MATCO distributors. In 1999 when I started there was a 6 month out clause in my agreement, they did end that practice in the early 2000’s. MATCO is there to provide you support and brand recognition. They cant run your business and don’t. It’s up to you. In 2008 MATCO was doing what every other business was doing, trying to survive. Some businesses made it, some didn’t. It’s unfortunate yours didn’t. It’s a shame that now you have lost money, but you are going to continue to loose more by paying this lawyer of yours to try and get money out of matco. One thing about MATCO is the fact they are fair, they don’t treat anyone different. Your friend Debbie complains she cant get tools to write a contract, well guess what doesn’t matter who you are if you are past due on your account for a period of time you arent going to get tools. I have helped numerous distributors over the years with there business, helped them make sales, helped them with promotions, but when all was said and done, when I left, or wasn’t standing next to them to help them sell, they didn’t. Nobody is going to hold your hand and run your business for you. They are not going to do it for the guy who is ranked 1,500 or the guy who is #1. They are there to provide an opportunity for a business, with brand recognition, training, and support, and support doesn’t mean standing next to you holding your hand every day of the week!

• Debbie- Why would Matco hold an order if your tool bill was paid? I’m interested to know their reasoning behind that.

  Tommy- “…in ’08 when the economy got bad, Matco was no where to be found.” Matco is in the same place they’ve always been. What do you expect Matco to do for you when the economy goes bad? Small business failure rates have been sky high since ’08 due to economic problems, but you expect Matco to solve the problem for you? My business is half what it used to be, prior to ’08. Matco didn’t cause it. My shops are dead. Matco didn’t cause it. Hard economic times cause business failures. always have, always will. I’m not the least bit happy about it, but what should Matco do? “Why have they not FORCED the veterans to sign new agreements”???? What the hell is that all about? I have two franchises, one old, one new. I run them both the same. If your business is failing under the new agreement, it will certainly fail under the old. The only real difference I can see is the outside buying restrictions. I buy around 5% outside, which I believe is the limit under the current franchise. If you want to buy outside, do it. If you want to dump Matco and run independent, do it. If Matco is the devil, take the stickers off, and go it on your own. If Matco’s actions are hindering your business, why wouldn’t you?

  Don- While reading your post, my thoughts were “why let a few unhappy franchisees ruin what could be a good career for you”. Then I read the last line. Don, I’m 53, and I’m tired. This is not a retirement plan. I would not recommend starting this business to anyone over 50. It’s just too demanding, as many small business are. You’re making the right decision.

• “Why would Matco hold an order if your tool bill was paid? I’m interested to know their reasoning behind that.”

  AS WOULD I………………..

  Curious, any other distributor restricted in contacting Customer Service? I can no longer email a single contact – I have been punished………….I can only email a GENERAL EMAIL box – or call – OH yeah, I have that little issue with NO CELL SERVICE.

  Or, maybe,,,,,,,,,,,,,,,,,,,,,

• WHY IN 08 WHEN HALF OF THE DISTRICT IS NOT PURCHASING 80% OF NATIONAL AVERAGE, DO THEY PICK AND CHOOSE WHO TO CUT LOOSE AND WHO NOT. THEIR WERE ABOUT 20 DIST IN THE GATOR DISTRICT, WHO AND WHAT GIVES MATCO THE RIGHT TO PICK AND CHOOSE WHICH DIST TO LET LOOSE? THEY SHOULD HAVE LET ALL THE DIST BELOW PURCHASE AVERAGE GO, WHY NOT?WHAT ABOUT TIME TO CURE, NO ONE WAS CURING BACK THEN.WHAT IS RIGHT FOR ONE IS RIGHT FOR ALL. WHY DID MATCO NOT LET GO OF THE OTHER DISTRIBUTORS GO, CAN ANY OF YOU VETERANS ANSWER THAT, I THINK NOT.YES I WILL CONTINUE WITH THE RAP OF MATCO AND YES I HAVE SOME MORE MONEY TO CONTINUE THE FIGHT. IT WILL GO ON AND NO ONE WILL SHUT ME UP. THEY NEED TO ADMIT THEIR MISTAKES, MAKE EVERYONE RIGHT AGAIN AND PLEDGE TO CORRECT THEIR DECEITFULNESS. LIKE I SAID, ‘GO GET THEM JERRY’.

• Right on Tommy :)
  It is perfectly clear to ANYONE reading the posts – Matco would just LOVE for us to “be quiet” and ‘go away’…………………… Well, the BEST way to motivate me, is to tell me “I can’t do something” —- yes, yes, – MANY said I “couldn’t drive the mountain route” – WELL, I DO DRIVE THE MOUNTAIN ROUTE AND I DO SHOW UP EVERY WEEK –
  so, thank you boys, I am motivated
  NOT being quiet
  NOT going away