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 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
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View Comments
Junior- Maybe you would, but not me. Glenn addressed NONE of my questions or concerns, period!
The other 3 names I mentioned, bent over backwards, went above and beyond and out of their way to address my concerns and answer my questions.
AND all 3 had no clue as to why Lord V wan NOT. That is when the phone calls from my RM started. Not calls of "I hear you have questions/concerns that Glenn is unable to answer or help with". But the phone calls of "how dare you call Stow and question the all mighty". And "you must be a reall piece of shit to go over Glenns head". "You don't deserve Glenn help if that is way YOU are treating HIM". "You are gonna get Glenn in trouble and cause him problem".
It was CLEARLY shown that my RM's main concern was "covering his and Glenns ass" NOT helping a new DBR suceed or even answer questions.
Yep, "the good ole boys club" is alive and well at Stow.
Junior- Gotta disagree again, and Jerry has my proof. One of few answers I ever got from GLenn was the solution to ANY problem was BUY MORE INVENTORY!
My "starter inventory" was USELESS on my route. I was in rural area COVERED with farm guys, equipment guy and body shops. They didn't need what was in starter inventory. This is why "starter inventory" should be adjusted somewhet to each route.
Glenn solution was to load truck with MORE tools that guys needed. I understand the therory, BUT I had NO money to stock, from the get go, what my guys "needed". Within first month I begged to help we with returning stock for items that would better suit my guys needs. I was told "NO you have to keep starter inventory". That I "just needed to add to it"!
Having worked in CDJ dealers for over 20 years I know a thing or two about inventory control. Rule #1 is you don't stock or sit on slow or non moving inventory, period!
You send it back, turn it to cash and then buy whatyou can move.
ANOTHER DISSATIFIED MATCO DISTRIBUTOR
I am currently a matco tool distributor in the west, not going to say where. My district manager and regional manager are supportive, but when things start to go down hill, they just say "you are everybody else is down with their sales, just be careful out there, collect what you can, and be persistent with tool box sales. I would advise anyone NOT to go into this business unless you have some financial backing, just in case the economy takes the turn for the worse, like now. I was quoted a salary of 4000.00 a month easy, but that is hardly the case. It depends on your route, my route is not the best and the customers are "seasoned" mechanics that have most of the tools that I have on my starter load on my truck. If they want tools, they have you take orders, and give them a 5 to 7 payback period payment plan, and you only get a two week turn around when you have to pay that tool bill. Meanwhile, where do you get the money to pay back that tool order? Yes, you have a lease payment on your truck of 1200 a month, and then insurance for the truck and the business liability, of about 350.00 a month, and then you have to pay the state tax you collected depending on your sales, could be around 1000.00 to 2500.00 a month, and the rest is for running the business of sending the warranty (that you pay) tools back to Matco in Tennesee via UPS and then they credit your tool account, and that takes around a week, so if you have lots of warranty tools, money is tied up for a week? A lot of stuff is not told to you in training in Ohio and by your district manager, VP, and the regional manager. So beware to any one that wants to start up a matco distributorship. Have lots of money of your own, to fund this business when you are in a bind, or when sales are down, cause it will cause lots of nights of tossing and turning due to stress and worry. The laptop you buy is over priced, you can get it cheaper from the manufacturer, and the software they have is good, but it will cost you about 850.00 that sometimes does not function right. The licensing for the truck is going to cost you 800.00 to 1200.00 a year, the state licenses will cost you about 500.00 a year, the internet and cell phone bills will have to be paid with the profits, and mind you, you only get between 35 to 40 percent on every tool you sell. Sometimes much less. The tools you sell that break like flashlights, drop lights, always go out, you pay out of your pocket to ship it back to repair and there goes all your profit margin. Matco should pay for it, it is their tools, they should pay for the shipping for the repair, NOT the distributor and you can not charge the customer who bought the tool a month ago and charge them 10 bucks for shipping, and if you do tell them to pay for it, they want a refund for the tool and get angry with you. So think long and hard on doing this matco, snapon or cornwell distributorship. It is not all glory and smooth sailing, lots of promises not kept by Matco and your district manager. And if you do decide to do it, I wish you all the best of luck, cause it will take lots of your own money to get this business off the ground. I regret it now every single day.
"Junior – Jonelle sounds familiar. It was before Doug. When a district doesn’t have a DM to hold a meeting the RMs will ask a nearby DM to fill in. Thought it might have been you."
Well, I guess that is a close as you will get to saying you were WRONG!
..........and I won't hold my breath for an apology
Bottom Line
I'm willing to share my story, which I have
I'm willing to post Facts of which I can document
I do not need to "prove" anything here, this is a forum for information, a vehicle to "get the word out" - which it has :)
1952 comments since 11/12/11 -
Thank you Tommy
Amazing how yet ANOTHER DISTRIBUTOR WITH A VERY VERY SIMILAR STORY
I really can't understand how anyone can DENY there is a problem!!
World Class Support - not from Matco,,,,,
Several of my customers, upset that I am being forced out of business by Matco and their unfair business practices - have written letters to Ernie Lauber. Today, I received a copy of an email from Ernie Lauber responding to
one of those letters.
My customer wrote- in part:
Mr. Lauber,
I am writing to you to formally express my dissatisfaction with Matco Tools...................two paragraphs more,,,, It certainly seems Matco views their distributors as "disposable".
The Response Ernie Lauber sent my customer today:
On Dec 22, 2011 1:59 PM, "Lauber, Ernie" wrote:
Thank you for your feedback. We are always trying to improve our system, products and programs. A testament to this is how we have been recently named number one in category – mobile tool company - again by Entrepreneur Magazine. In fact, we have been named number one in category five out of the last six years. We have also been in the top 25 rated franchises by this prestigious magazine for the last six years.
We will continue to have the lowest distributor separation rates in the industry, along with best in class service levels.
Have a great holiday season.
---------
My customer was obviously dissatisfied with the reply as it was clear to both him and me Matco has no regard for their distributors and apparently even less for THEIR CUSTOMERS.
Sent: Thursday, December 22, 2011 2:05 PM
Subject: RE:
Sorry to inform you, magazines don't do any company justice, its the technicians your company attempts to serve that decides if you're worth dealing with. In my experience I have seen more Matco dealers come and go than any other distributers.
Also, your reply appears to be scripted. I see no way that you are trying to resovle the situation.
Tommy over 15k this week, the week of Christmas. Economy terrible, nobody had money, holiday season....that's all BS.
My customers have no idea what Matco does or doesn't do to me and they never will. When you are walking around shops telling your customers Matco is screwing you guess what ....they stop buying from you because they figure they will show Matco. I won't buy their tools, that will show them, they have now forgot that it's only hurting you not Matco. Any person that practices this is a fool !
Junior- Thanks for all you have put into this.
I am sure there have been some unfair treatment of distributors over the years. I just as convinced that there are people that are in this for the wrong reason.
But everyone must keep in mind we are in business....... Matco is in business..... I do this to make money. Matco is in this for money. I have done things while running my business that I wish I hadn't. I would bet Matco has done the same.
One very important thing that has not been said here is: In business no one does anything to you....... You just got in the way.......
We are not knitting blankets here everyone has alot on the line. It's what you do with what you have that makes the differance.
Again thank for standing up for something you could have walked away from. Even when you offered help you still got slamed for petty reasons.
Merry Christmas and HAppy New Year.
Debbie wrote - "Well, I guess that is a close as you will get to saying you were WRONG!
……….and I won’t hold my breath for an apology"
Junior - Apology? WTFF?
Matco2 wrote - "Again thank for standing up for something you could have walked away from. "
Junior - My pleasure. I have too many friends on Matco trucks and although there are real stories here of questionable seperations I can't stand it when guys like Tommy doing what Tommy does. Campaigns like his hurt the very folks he claims to be protecting.
Merry Christmas to you and your family as well.