With a product line of over 25,000 items, Matco Tools manufactures and sells automobile repair tools, diagnostics, and toolboxes. Over 1,750 franchisees represent Matco in the United States and Canada. You can offer Matco Tools items as a franchise to mechanics and automobile lovers alike. By providing auto technicians with just what they need to keep working, you aim to save them time and money when you work for Matco Tools. You generally have the necessary resources to continue doing business when they do.
What is Matco Tools?
Professional mechanics and vehicle enthusiasts can get high-quality tools, storage, and equipment from Matco Tools to complete repairs.
Matco Tools is a company that specialises in the manufacturing of cutting tools and accessories for the metalworking and carpentry industries. Matco Tools was founded in 1979.
Matco Tools offers a wide range of cutting tools and accessories, including saws, routers, chisels, planes, and jigs. Other tools include wrenches, screwdrivers, gouges, and specialty tools.
The company’s products are designed to meet the needs of both professional and amateur woodworkers. Matco Tools’ cutting tools are made from high-quality materials and are rigorously tested before they are released to the public.
Is Matco Tools a Franchise Opportunity?
Yes, Matco Tool is a great franchise opportunity. If you plan to invest in it, it will be a significant investment as you would get the chance to expand your business, generate more revenue, and eventually profit later once the firm is settled.
Matco Tools franchises, a network of more than 1,900 independent business owners, deliver the tools and services on Matco Tools trucks.
Matco Tools Franchisees are independent contractors who use their OWN mobile truck tools stores to sell, provide, and service tools. This implies that individuals manage their own timetables, expand their own businesses, and generate their own income.
Facts About Matco Tools
- More than 1,750 franchise trucks of Matco Tools operate throughout the United States and Canada.
- At its manufacturing facility in Jamestown, New York, Matco manufactures its own line of toolboxes. They produce numerous air tools, electric tools, hand tools, and diagnostic instruments themselves and are under contract.
- At Matco Tools, the average yearly salary for a Distributor is $56,232.
|Matco Tools Franchise Information|
|Industry Type||Retail & Services|
|Sub Category||Services Franchises|
|Company Name||Matco Tools|
|Founder/Management Head||Timothy Gilmore, President|
|Employees at Company H.Q||340|
|Franchise Expansion Plan||They are planning to expand in Canada and throughout the US.|
|number of Units||1,919|
|Number of Franchise Units||1835|
|Social Media Handles|
|Company Office location||4403 Allen Rd.Stow, OH 44224|
Matco Tools Franchise Requirements
You must be financially ready in order to invest in the Matco Tools franchise fee and other beginning expenditures in order to join the team. You should also get ready for recurring costs to pay to the business, which typically include renewal fees.
Franchisees must also be able to satisfy the established net worth and liquid capital standards of the Matco Tools franchisors. They also expect a franchisee to fill out their online form. The Matco Distributor application can be completed and submitted for preliminary approval to enable a thorough study of funding needs, available financing options, and franchise eligibility.
The minimum Net worth Required is $25,000
Minimum Cash Investment Required is $5000 to $13,500
How much does a Matco Tools franchise cost
The minimum amount of money needed to launch a new franchise is $79,000.
The Matco Tool facility franchise cost is $ 79,000 to $309,133. This is also the ongoing cost of the franchise in the US.
|Matco Tools Franchise Initial and On-going Franchise Cost|
|Matco Tools Franchise Fee||$8,000|
|Matco Tools Franchise Cost||$76,819 – $309,133|
|Term of Agreement||10 years|
|Is the franchise term renewable?||Yes|
Is the Matco Tools franchise worth the investment?
In 2019, the market’s total revenue exceeded $67 billion, and during the previous five years, Matco Tools experienced average annual growth of 2.4%.
The company is well-positioned for future expansion and offers a great opportunity for aspiring business owners thanks to its cheaper start-up costs than the majority of Matco Tools franchises business models and the absence of royalty or advertising fees. Though the operations were a little down during this period, overall growth was seen by Matco Tools.
Matco Tools Franchise Training
The franchisee has to undergo the Matco Business System Training (MBST) Program with a minimum of 50 hours of initial classroom training at Matco headquarters. The franchisor also provides the Matco Business System Continuation Training (MBSCT) Program, also known as Phase 2 of the training. Phase 2 consists of 35 hours of mandatory classroom training (MBSCT) that must be attended to and completed by franchisees.
Matco Tools Franchise Operations
Matco Tool franchises are independent business owners who operate throughout the US and now have plans to expand in Canada.
The Franchise owner will receive support from the District Franchise Manager to operate the business and make it profitable.
How is Matco Tools Franchise Territory Granted
Matco tools do have exclusive territory available. Matco Tools franchises will only grant territory based on the territory grant disclosure document of terms and conditions of the locations of the franchise. The document is known as the List of Calls document which states about granting them the territory.
The franchisor will not run or grant a license, a Matco mobile distributorship that will be authorised to sell products to the potential customers or actual customers identified on the List of Calls, if such customers purchase products at or from businesses identified on the List of Calls, as long as franchisees comply in compliance with the distributorship agreement.
The truck route is the franchise territory granted to the franchise owner by Matco Tools.
What is Matco Tools Franchise Term of Agreement and Renewal?
The time period for terms of agreement and renewal is 10 years only if all the necessary requirements are met.
Does Matco Tools Franchise provide Financial Assistance?
Matco Tools does provide financial assistance for those in need. Any related equipment, startup costs, inventory, accounts receivable, payroll, and franchise fees are all covered by in-house financing provided by Matco Tools. They also have the offer of Financing from a Third Party.
Matco Tools has connections with outside sources that provide money for the same things as mentioned above. Their source of finance in this case will be someone else, and not themselves.
Pros & Cons of owning Matco Tools Truck Franchise
- If you’re a veteran, they may give you discounts for incentives such as a reduced part of the initial investment.
- You might be able to get the chance to do the branding and marketing you require without having to pay their royalty or advertising royalty cost.
- When compared to other franchise possibilities, Matco Tools’ initial startup costs are low.
- They expect their franchisee and employees to do overtime work at times when needed and on weekends too.
- Management within the team is a little poor, even though the communication is well taken care of.
How much do Matco Tools franchise owners make?
Franchises owners of Matco Tools make $91,000 annually, or $44 an hour, which is 41% more than the $60,000 which is about 32% more than average wage for all employed people in the US.
What is Matco Tools franchise profit?
Matco Tools franchises profit information has not been disclosed by them.
What are Matco Tools franchise reviews
Dan Burkett and Kevin Vernon, distributors for Matco, demonstrate that having prior automotive experience is not a must for being a prosperous franchise owner. Dan and Kevin were able to worry less about their lack of tool knowledge and concentrate more on operating their business and developing relationships with their client’s thanks to Matco’s initial training and ongoing support.
Matco Tools Franchise Rankings
- Due to its remarkable success in areas including unit growth, financial health, stability, and brand power, Matco Tools ranked #29 Entrepreneur’s Franchise 500 had named one of the top 500 franchises in 2022.
- Ranked #41 among Fastest Growing Franchises in 2022 by Entrepreneur.
- Ranked #3 among Franchises within $100K
- Ranked #5 among Home-based franchise business.
- Ranked #5 among Top Franchises for Veterans.
Franchise Deck Analysis and Overview
Matco Franchise is a great deal to invest in. They offer an expansion of the franchise and tend to generate more revenue. In 2021, the annual revenue generated by the firm was around $2.8M. As mentioned in the blog, the average expected salary of an owner of the Matco tools franchises is also 32% more than the average expected salary of a normal employee in the US. This data shows us that it is a profitable investment and can be worth it.
On the other hand, they also do not let the franchisee own the business. They tend to keep an eye on the franchisee and keep improvising the franchise. This is to maintain the brand name but is eventually profitable for the firm.
Matco Tools Franchise Success and Failure Rate
Matco Tools Franchises failure rate is shown to be 36.6%. No information about the success rate has been disclosed by the firm yet.
|Competition Analysis of Matco Tools Franchise|
|Franchise Brand||Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Matco Tools Franchise||$76,819 – $309,133||$8,000||N/A||N/A||Not disclosed in FDD||4.5/5.0|
|Snap-on Tools||$175,146 – $411,941||$8,000 – $16,000||Royalty Fee: $120/mo||10% profit margin||Not disclosed in FDD||4.5/5.0|
|Mac Tools||$120,500 – $340,535||$8,000||N/A||9% for the owner||Not disclosed in FDD||4.0/5.0|
|Cornwell Quality Tools||$59,525 – $277,825||$0||N/A||N/A||Not disclosed in FDD||3.5/5.0|
The Franchise Deck rating for the Matco Tools franchise is 4.2/5.0.
In order to establish and run Matco mobile distributorships, the franchisor has created a unique franchise business model. These distributorships sell tools, tool boxes, service equipment, automotive diagnostic services, software subscriptions, and other goods and services, such as, for instance, clothing, model cars, and other collectibles, consumables (such as mechanic’s hand soaps), and any other products that Matco may, at its sole discretion, offer. If you are an enthusiast to work with Matco tools and if you like hands-on work, then this is the best franchises opportunity for you to look at and invest in this retail business firm.
Entrepreneurs who want to open a franchise in the retail and services franchise opportunities categories can look at
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- Pods Franchise
- Dream Vacations Franchise
- Pillar To Post Franchise
- Roof maxx franchise
- Cornwell Quality Tools
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Frequently Asked Questions (FAQs)
- Is the Matco Tools franchise profitable?
Yes, it is highly profitable.
- Can you make money owning Matco Tools?
Yes, you can definitely make money owning Matco Tools.
- Is Matco Tools a franchise?
Yes, it is a franchise.
- How do Matco Tools franchises make money?
They make money by selling the tools to customers.
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