MATCO TOOLS Franchise Complaints
MATCO TOOLS Franchise Complaints: Have you had any dealings with MATCO Tools or the MATCO Tools franchise? Please share a comment about your experience – good or bad – below, as well as advice for those considering investing in a MATCO Tools franchise.
Also read: FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud
We received the following franchise warning about the MATCO TOOLS franchise opportunity. According to commenter “TOMMY CHEUNG” :
“STAY AWAY FROM MATCO TOOLS. THEY WILL SELL YOU A BILL OF GOODS,WHICH IS NO GOOD.
“RUMOR HAS IT ,MATCO MAKES MORE MONEY SIGNING NEW FRANCHISES THAN THEY DO TAKING CARE OF THEIR CURRENT ONES.
“DARYL PRITCHETT AND MIKE RAMEY WORK TOGETHER TO SIGN YOU UP AND THEN KICK YOU TO THE CURB. I AM WORKING ON A LAWSUIT AGAINST MATCO, HOPING TO TURN IT INTO A CLASS ACTION SUIT. YOU MAY CONTACT JERRY MARKS AT MARKS AND KLEIN LAW FIRM AT [redacted], IF YOU ARE INTERESTED.
“I INVESTED ALOT OF MONEY IN MATCO AND AFTER 3.5 YEARS THEY SHUT ME DOWN. WHEN THE ECONOMY SLOWED IN 2008,THEY PUT ME OUT OF BUSINESS.
“I ALSO SPOKE TO A PREVIOUS EXECUTIVE, WHO CALLED ME, AND STATED THATS THE WAY MATCO DOES BUSINESS. STAY AWAY FROM MATCO TOOLS AND RUN LIKE HELL WHEN YOU SEE THEM. I REPEAT DO NOT BUY OR INVEST IN MATCO TOOLS…”
Marks & Klein is a legitimate franchise law firm that often represents franchisees in lawsuits against their franchisors, but we haven’t verified with them whether a lawsuit against Matco Tools is in the works or not.
WHAT DO YOU THINK? IS MATCO TOOLS A GOOD FRANCHISE OPPORTUNITY, A FAIR FRANCHISE OPPORTUNITY OR A FRANCHISE SCAM?
If you’ve had dealings with Matco Tools, please share a comment below.
Matco Tools Franchise Posts & Discussions
MATCO TOOLS Franchise Complaints June 8, 2011 (1000+
comments)
MATCO TOOLS Franchise Defenders Speak Out December 7,
2011 (Comments defending Matco invited)
MATCO TOOLS Distributor Franchise December 7, 2011 (Overview with
links)
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29,
2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other
Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November
22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15,
2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
Other Mobile Tool Franchise Posts:
MAC TOOLS Guilty of Franchise Fraud? November 7, 2011
CORNWELL TOOLS Franchise Scam or No Scam? November 17, 2011
LENNY, PLEASE STOP AND READ THIS BEFORE YOU POST AGAIN.
Lenny wrote – “Then those that expected a fair shake, got that and got lucky with a good territory, then the arrogance went to their head. Or they are lying there arse off.”
Junior – This blew your theory of two types of people. So if you’re successful and you say so you’re a liar. Great summation Lenny. Pure genius.
Lenny wrote – “I suspect after reading all of these post, there are GOOD routes and BAD routes. If you got a good route you play the game, whether fairly cheat or lie, doesn’t matter, your happy.
Junior – So suffice to say you’re a liar and cheater if you have a good route. WTF? This is your conclusion of months of research?
Lenny wrote – “If you got a BAD route, you ask for help and you get no help, because there is nothing there to help you. Your screwed and the odds are against you.”
Junior – What’s it mean if you get a good route and you still ask for help? Is “there nothing there to help you”? When is “there something there to help you” Any ideas Lenny?
Lenny wrote – “I have come to the conclusion that the Matco Business System is a SCAM.”
Junior – Wait, so those that get a good route aren’t a part of the SCAM? How does Matco pre determine who will be SCAMMED and who will not? I’d actually pay money for this answer.
Lenny wrote – “Given the 80% National Average rule, its a SCAM,, LAW OF AVERAGES, simple as that. DO YOUR MATH!”
Junior – No Lenny, you do the math for us and show us your months of research right here. You made the claim, so back your words up with the math, please.
Lenny wrote – “Approx 30% will do good and be provided the support they need. Their the TOP 30% with large quality head count.”
Junior – You can prove this claim too I presume. You know me? You knew my head count when I was in the top 25? Twice. Please share with all of us how many DBR’s you interviewed, your route survey sheets, and can you tell us how the top 30% is separated at the district level? Do they carry a card or maybe they get a star to wear on their shirt.
Lenny wrote – “30% are in the middle, Just like the middle class of America, feeding the system with money, but get nothing in return, some make it some don’t.”
Junior – Hold on a minute. I may not be all that sharp Lenny…but if the middle class is only 30% that leaves 40% for the lower class? And if the turnover is 36%-46% as Tommy and company claim I think you just proved why.
Lenny wrote – “Then the bottom 40%, they take your money, knowing it will end in failure because the system just can’t support you. And if they did it hurts Matco’s bottom line-THE PURCHASE AVERAGE!!!”
Junior – The bottom 40%…I wonder who is in this group, care to take a swag at it?
Lenny wrote – “KEVIN, MATCO#1, TLMAN, JUNIOR and others in your camp. You have yet to say anything positive, you have not given me any positive reason why I should invest in Matco Tools or support the Danaher system. You only berate people.”
Junior wrote – Well let me change that right now Lenny. In my first year of business I upgraded to a 24 foot International and invested in an additional $60 of tools. I took my family on a tropical vacation, and in my second year I paid off my wife’s car and my brand new truck. My third year I paid cash for a brand new camp trailer for the family, and by this time I had at least $240k in active inventory…IS THIS THE POSITIVE YOU WERE LOOKING FOR?
Lenny wrote – “In this season I hope you all can find it in your heart to help your brothers and sisters in need.”
Junior – Lenny, did you miss my campaign? I’m doing just this…there are quality distributors on their tool trucks today that are being harmed by all this rhetoric. Posting complaints without a shred of proof only hurts your “brothers and sister”.
The bullies are out in force
*Franchise Fraud
*Distributor Churning
*SBA Loan Fraud
*Excessive Windshield time
*NON viable routes
* Erroneous LOC – completely bogus customer counts
* Phony budgets
*******FACTS************
http://www.google.com/#sclient=psy-ab&hl=en&source=hp&q=matco+tools+distributorships&pbx=1&oq=matco+tools+distributorships&aq=f&aqi=g-l1&aql=&gs_sm=e&gs_upl=354l12947l4l13285l26l10l14l&fp=1&bav=on.2,or.r_gc.r_pw.,cf.osb&cad=b
GOOGLE SEARCH – PAGE ONE
CAN’T HIDE THE TRUTH……………….
Remember Matco’s minions are here to:
Discredit
Disrupt
Derail
Distract &
Distort the truth
IGNORE THE BULLIES
POST THE FACTS
Debbie wrote – “MATCO VIOLATES LABOR LAWS…Matco improperly requires its distributors …Unemployment Benefits, if terminated.”
Junior – I feel bad picking on you here Debbie, you come across as a nice person that just doesn’t seem to have a clue. But someone has to say it. YOU’RE NOT A FRICKEN EMPLOYEE. What part of independent tool dealer do you not understand?
Forgive me lord for that one, but she had it coming.
The following is why you are an uncompensated employee and entitled to Workers Compensation and Unemployment Insurance.
Matco falsely tells you are an independent contractor/franchisee.
This is false because Matco controls everything you do and the customers are not yours – they belong to Matco.
The following proves your employee status:
Matco exercises complete domination and control over the manner in which the distributors performed their day-to-day work and have the power to terminate the relationship at-will. This domination and control includes, but is not limited to:
· Matco’s insistence that distributors use and not deviate from the Matco Program which covers every operational aspect of the distributors’ businesses;
· Matco’s refusal to allow distributors to sell to anyone outside the assigned list of calls;
· Matco’s prohibition on distributors’ modifications to the List of Calls;
· Matco’s insistence that distributors purchase or lease only computers and software approved by Matco;
· Matco’s mandate that all distributors perform warranty repairs, exchange and collection work with no compensation;
· Matco’s regulation of standards and methods of operation for all distributors; and;
· Matco’s mandate that all distributors purchase or lease a truck or van which meets specific color and specifications.
AGAIN< how many of these 'successful' distributors would have customer support if they were to leave??
My customers are CAMPAIGNING for me to stay……………
wonder if any of them ever had a customer write a letter of praise and send it to corporate??
Debbie said: “Matco improperly requires its distributors to perform uncompensated work in violation of FSLA (Fair Labor Standards Act) minimum wage requirements as follows and which makes the distributor eligible for workers Compensation if injured as well as Unemployment Benefits, if terminated.”
Really, Debbie- Where do you come up with this crap?? Save yourself some time, and call your buddy Jerry- He’ll set you straight. You’re embarrasing yourself again.
On second thought, keep it up- you make it so much easier for a potential distributor to decide who to listen to. The more you post, the easier it gets.
Yet ANOTHER point proving why you are an uncompensated employee and entitled to Workers Compensation and Unemployment Insurance.
2. WARRANTY/EXCHANGE AGENT – Sockets, wrenches, air ratchets, air saws, floor jacks, electronic equipment (scanner, engine analyzer, floor jack). The dealer packed up the items to be exchanged and took them to UPS/FEDEX or other carrier for return to Matco. All of the foregoing required the dealer to spend uncompensated time getting a RMA (Repair Authorization Number).
AGAIN< how many of these 'successful' distributors would have customer support if they were to leave??
My customers are CAMPAIGNING for me to stay……………
wonder if any of them ever had a customer write a letter of praise and send it to corporate??
Debbie just how much bs do you feed your customers??
DIRECT quotes from emails from my DM
“I do want to comend you. Most of the shops that are on your List of Calls were very happy with your
service and wanted me to give you a raise.”
“I did get a lot of very good comments from your customers.”
KEVIN, I AM NOT OUT TO HURT ANYONE, I CALL LIKE IT LIKE I SEE IT, IF IT HURTS YOU, MATCO OR ANYONE ELSE, GET OVER IT , IF MATCO CAUSES PROBLEMS I DONT RUN , I FACE IT, IF IT MEANS A DISTRIBUTOR GETS HURT BY ME TELLING IT LIKE IT IS, THEY NEED TO FACE REALITY, MATCO DIDNT THINK ABOUT ME WHEN THEY KICKED ME TO THE CURB AND THEY DIDNT THINK ABOUT WHO IT MAY HAVE HURT, WHY SHOULD I CARE, I DONT.
IT IS NOT ALL ABOUT MONEY, I HAVE NOTHING PROMISED, I SAY THAT TO GET A FEW PEOPLE PISSED OFF. IT IS ABOUT SETTING AN EXAMPLE OF HOW MATCO TREATS PEOPLE. DECEITFULLNESS,LIES AND FALSIFYING DOCUMENTS.
KEEP POSTING, BE LOUD AND BE HEARD.
CAN ANYONE TELL ME WHERE THE FLOOR JACKS ARE MADE?
IS IT TAIWAN, CHINA, MEXICO, OR KOREA?
Debbie, you are doing the right thing, ignore the morons, just as Lenny said, he hit the nail right on the head.Just keep telling it like you see it. Keep posting and we will be heard.
THE DEFENDERS SITE TALLY HAS STAYED THE SAME,WHY?
HAPPY HOLIDAYS TO YOU AND YOUR FAMILY,DEB.
Just wanted to post this again to remember why we are here:
Matco Tools Dirty Dozen- 12 Reasons Why Distributors Fail
1. Bait & Switch Distributor Rides
The prospective distributor is taken on a “check ride” with a distributor that has a much better territory than the new prospect will receive.
2. Inflated List of Calls
The “List of Calls”, or number of potential tool buying customers, sold to the distributor is inflated and often includes customers that have little or no chance of ever buying tools from the distributor.
3. Misleading use of branch paid sales figures to prospective distributors
Use of misleading sales figures based on average sales of a Regional Branch, which are by their nature higher than a prospect can achieve.
4. Churning of List of Calls
Lists of Calls or territories that have failed before are re-sold time and again to unsuspecting prospects to ensure that Matco keeps a distributor in the territory regardless of their ability to be successful and the company’s knowledge that the territory is unlikely to support a successful route.
5. Overselling of Tools
Employees are paid commissions on tools sold to distributors by the company so distributors are subject to aggressive sales tactics used to sell more and more tools to distributors regardless of their ability to sell the tools; after all, you “can’t sell from an empty truck”.
6. District and Regional Manager conflicts of interest
Inherent conflict of interest between company managers and distributors because although managers are pitched as “business coaches” and “partners”, the managers are paid commissions on tools sold to distributors – if distributors don’t buy, managers don’t eat.
7. Extension of Excessive Amounts of Credit
Matco extends excessive amounts of credit to distributors to allow them to “purchase” more and more tools from the company regardless of the distributor’s ability to sell the tools and regardless of the distributor’s ability to pay that credit line off – eventually, the distributor suffocates on his debt and his route fails (this allows the territory to be re-sold to a distributor with a “fresh checkbook”)
8. No Room to Grow- Over Penetration
The List of Calls given to a distributor will shrink over time. Matco locates too many distributors too close to each other and consequently when the natural reduction in customers occurs the distributor has no place to go to replace these lost customers.
9. Credit Hypocrisy
Matco will extend credit to mechanics to purchase big ticket items from the distributors such as diagnostic equipment, but will not extend that credit to mechanics that do not have Social Security numbers or other proper worker documentation; yet Matco expects the distributor to extend its own credit to mechanics that do not have Social Security numbers or other proper worker documentation for the sale of smaller ticket items.
10. Non-Supervision/Assistance –– Diluted District Manager supervision
There are not enough managers per dealer to provide meaningful business assistance which should include sales assistance to business reviews.
11. Usurping New Customers
When a new customer is located in a specific territory, the customer is often not given to the distributor but used by Matco to create new Lists of Calls so that in can sell another initial inventory and more tools to a new distributor.
12. False Recession Excuse
Matco blames the current economic difficulties and failures of its distributors on the recession. The truth is that had the List of Calls had been sufficient, meaning enough customers to sustain the amount of tools purchased (and the debt service of those purchases) far fewer distributors would have failed.
Gary on November 12th, 2011 6:00 pm A class action lawsuit is in the works right now. It is time to put your foot down and let Matco Tools know that distributors are sick and tired of their illegal, and unfair business practices.
Another one saved from lies.deceit and trust issues, and being mislead.
Lenny I am glad we could help, call on us at any time, you see the differences and I am glad we could shed light on this problem. Invest somewhere else.
Junior writes: “Debbie, you come across as a nice person that just doesn’t seem to have a clue. But someone has to say it. YOU’RE NOT A FRICKEN EMPLOYEE. What part of independent tool dealer do you not understand?”
Junior, I think you, like Kevin and the others, make the very serious mistake of underestimating Debbie.
You treat her like some hysterical woman and dismiss her points as nonsense without giving them a second thought. That’s a big mistake. If Matco is making that same mistake, it’s going to bite them in the *ss big time, just as it did to Coverall when they laughed off an unemployment claim by one of their franchisees.
Ask Coverall if they’re laughing now.
“a disturbing court decision… has sent a chill through the franchisor community. The issue? Can franchisees be classified as employees instead of independent business owners? If so, what will be the consequences to franchisors?
” Although [a Coverall franchisee’s] claim for unemployment compensation was first denied, she took it on appeal and won.
“Coverall is currently treating 250 plus franchisees as employees until the litigation is worked out.
“Vilmenay explained, “Think about, for example, potential federal and state income tax liability. Could a putative employer be held liable for failing to withhold income tax from putative employees and remitting to the appropriate tax agencies? This liability could include penalties and interest and potentially unlimited look-back periods, depending on the circumstances.” She said wages could include holiday and vacation pay, workers compensation, income tax withholding.
“On another issue, Vilmenay said that [Coverall franchisee] Mr. Awuah could walk into a court… on a claim of misclassification of him as an employee of an independent contractor and could claim payment of wages. She said, “A successful claim would garner someone like Mr. Awuah up to treble damages for the violation and attorney fees.””
http://www.bluemaumau.org/8907/awuah_decision_sends_shiver_through_franchising
Junior, while you were taking kicks to the head in your mojo at the local senior’s center, it seems Debbie was reading up on recent franchise case law.
One of the problems with the arrogance and pomposity of the Matco Old Boys Club is that they don’t know what they don’t know, and they prove that fact rather loudly.
Dismiss and insult all you want, but there are very valid issues here and the many dbrs who are voicing them are not going to be ignored. If Matco were smart they’d start positively working with the protesters on their concerns. Or they can just ignore and dismiss them, like Coverall.
Hmm… how’d that work out for Coverall?
SInce my truck is down I thought I would help here.
You can not collect unemployment…… It is state run and if you don’t pay you don’t collect. I can’t collect because owners can’t collect. If you only have family working for you you can’t collect because you don’t pay in.
Debbie,
I would rethink the good customer that said ” She will take care of it even if it comes out of her pocket” Let me get this correct…. He knows your in risk of loosing everything and he still expects you to pay for it…… Do you think he might be on your truck because birds of a fether flock together….. I am a victom…. This tool broke and its out of warrenty…..
I would think the customers that understand how it realy works and are not going to kick you at every turn are spending money with the tool guy who is running a business that is talking about how he is about to go out…. And will show up long into the future.
Junior wrote – Well let me change that right now Lenny. In my first year of business I upgraded to a 24 foot International and invested in an additional $60 of tools. I took my family on a tropical vacation, and in my second year I paid off my wife’s car and my brand new truck. My third year I paid cash for a brand new camp trailer for the family, and by this time I had at least $240k in active inventory…IS THIS THE POSITIVE YOU WERE LOOKING FOR?
No Junior, this shows arrogance, not one thing about Matco.
My first interview with a tool guy: he started with his own cash, no loan; lived in a $500,000 home, a custom garage for his Kenworth T300 Tool Truck, vacations in Europe every year. Has no loans, cars are paid for. Is this positive a positive statement for Matco? He was let go by Matco… He took some time off to be with an ailing family member in his 9th year, didn’t make the 80% limit.
I don’t care how much money you have, it means nothing to me. Your comment yesterday – “My accountant just told me we hit $100k gross today, wonder what Tommy did this month.”
Again, that means nothing about your success. $100k gross, but your break even is probably more. As far as I know, you have a ‘buy here’, ‘pay here’ car lot, preying on low income customers, charging double what the vehicle is worth and repo in a heart beat, when they miss one payment. Again, thats fine for you, but morally I wouldn’t do it. But good for you, you seem to employee people. Do you offer full benifits? Did everyone working for you finish the year successful? Did they all get trips to Tioman Island?
Again none of your comments show any praise for Matco and counter the unfairness spoke of on this site.
AS for the 30%, 30%, 40% numbers – FDD Section (19) FINANCIAL PERFORMANCE REPRESENTATIONS …possible performance at a particular location or under particular circumstances…. Table 19-A.
There will ALWAYS be someone in the bottom third. Should you care, as successful as you are, that they exist or not? You take them out, and replace them – you will STILL have a bottom 1/3.
March 2010, U.S. District Court Judge William Young ruled that Coverall had misclassified 10 franchisees as independent contractors when, under Massachusetts law, they met the criteria of being employees.
Since dealing with franchises was new territory for Judge Young, he asked the Supreme Judicial Court four questions about how the misclassified franchisees had been paid by Coverall and how they should be compensated. Could Coverall not pay franchisees for work completed, for example, if their customers failed to pay their bills? Could Coverall shift expenses to their franchisees that employers must legally pay themselves, such as workers’ compensation and other insurance coverage?
The justices added a question themselves: If franchisees are ruled employees, must the franchisor rebate all their franchise fees and royalties?
The court decided all questions in favor of the franchisees, raising the ante on future litigation. A cleaning franchise that loses a misclassified worker lawsuit in Massachusetts will be liable to pay each mislabeled franchisee thousands of dollars. Damages in cases filed after 2008 may even be tripled. “The cost of being wrong is very high,” said Gregg Rubenstein, of the Boston office of Nixon Peabody and one of the attorneys representing Jani-King of Addison, Texas, in similar lawsuits.
http://www.franchisetimes.com/content/story_result.php?article=02283
…..”Debbie you haven’t brought up a VALID point yet!” – Um THINK I HAVE!
After researching a little online, seems like Debbie is on to something big.
From AOL small business on the Coverall precedent:
“…many franchises will have to classify independent franchisees as employees rather than contractors, which could mean a sizable tab — franchisers would be responsible for paying the prevailing wages of franchisees, matching their Social Security and Medicare contributions, and increasing workers’ compensation and offering various other benefits.
“Franchises are not often involved in employee misclassification cases, but as government budgets dwindle, these types of cases have been catching the attention of lawmakers. Both the federal government and state governments may receive millions of dollars in extra revenue if they can prove that employers have misrepresented their workers.”
So, if the Tommys, Debbies and the rest make enough noise, maybe the government will decide to recover all the millions it (allegedly) got scammed out of by fraudulent SBA-backed loan defaults and reclassify Matco franchisees as employees rather than independent business owners.
Far-fetched?
Think about it.
Independent business owners can’t get “fired” but Matco regularly terminates distributors.
Independent business owners maintain their own customer relationships, but Matco owns the List of Calls and controls who dbrs can sell to, even prohibiting shops that aren’t being serviced.
Independent business owners aren’t forced to do free work, but Matco requires uncompensated warranty work, etc. the dbr can’t charge for.
It seems the mistake Coverall made was exerting TOO much control over their franchisees, to the point they weren’t deemed as independent business owners anymore. Coverall got away with it until a group of franchisees got really loud and forced the government to address the issue.
Franchisors who play God, who decide who gets to live or die, have a rude awakening when enough of their franchisees decide they’re MAD AS HELL and not going to take it anymore.
I think this group is definitely loud enough. They’ve got an attorney who is capable enough. And do you really think the government would pass up a chance to recoup millions and millions of dollars it was (allegedly) scammed out of?
Wow, Debbie. You’re as smart as you are tough. Go Debbie!
Look Lenny or whoever you are?
I am not happy with Matco either but attacking a guy who is successful has been successful and is going to be successful despite Matco is not what this board is about! He did have great success with Matco and I know Junior if the dog was black he did say there was grey on it. Junior was a model Distributor and a Model DM as far as I can tell and know. If there is anything negative to be said I will be shocked and need proof before I could believe it.
He may be defending Matco as others have been but like I said before he puts his name on his posts and does not hide behind TLMAN, guest17, matco#1, etc. These are the kind of things that make him the real deal. Some of the things older businesses were founded on: integrity, loyalty, honesty.
Not what Matco represents to me. Dishonesty, lies, deceit, fraud.
Tommy said- “KEVIN, I AM NOT OUT TO HURT ANYONE, I CALL LIKE IT LIKE I SEE IT, IF IT HURTS YOU, MATCO OR ANYONE ELSE, GET OVER IT”
Believe me, Tommy, your half dozen WMD’s will not hurt me, or Matco. You are considered a joke, and have made that obvious here. All you are out for is money, and you will probably get some, since it’s cheaper for Matco to pay you off than to fight. It will change nothing, but you don’t care about that- it’s all about the money, and Jerry is taking you for a ride. You failed. You were incapable of running a business. Matco did not cause your failure. Get over it.
Guest- I think the copy-and-paste functions on your computer are taking a beating. You’re as wrong as Debbie about workman’s comp and unemployment, and as far as underestimating her- I don’t think we’ve yet come close to seeing the depths of her misunderstanding and ignorance of running this business. Of course, again, how would you know? You’ve never been a distributor, and have no connection with Matco.
Matco2 wrote: “You can not collect unemployment…… It is state run and if you don’t pay you don’t collect. I can’t collect because owners can’t collect. If you only have family working for you you can’t collect because you don’t pay in.”
Matco2: You’re not following. The point is that if the court decides that Matco has so much control over its franchisees that they should be reclassified as employees, Matco will be required to pay into Unemployment, Social Security, etc. not only now, but retroactively as well. So a Coverall franchisee collected Unemployment and the franchisor had to foot the bill, and also pay back wages, social security, etc.
After reading a few Coverall articles, it seems there are lots of similarities between the janitor franchises and tool franchises, at least when it comes to the franchisor controlling the customers, etc.
If I were Matco, I’d make a real effort to help Debbie all I could to raise her sales and profitability, improve her route and spare her from termination. Might even be smart to buy her out and make her an employee. I bet Coverall wishes they had taken that smart approach and saved themselves millions and lots of bad press.
Kevin writes: “You’re as wrong as Debbie about workman’s comp and unemployment”
I assume you’ve analyzed the Awuah v. Coverall North America lawsuit and found no relevance with the Matco situation.
I’m sure the entire franchise legal community as well as the U.S. District Court eagerly await enlightenment via your expert legal analysis. Please, enlighten away…
LOL……………. did you hear that???
YUP,
a NERVE HAS BEEN HIT!
Kevin writes “Tommy…All you are out for is money, and you will probably get some, since it’s cheaper for Matco to pay you off than to fight.”
Tommy should be ashamed of being out for the money, unlike the Old Boys Club who are only motivated by integrity, honor and the American Way when they defend the practice of distributor churning and attack anyone who dares complain.
Debbie, expect a short break while Kevin tries to figure out what Awuah v. Coverall North America means and how he can try to dismiss it.
It might take a while because his outside reading has been limited to a single article in Professional Distributor that he rereads each night with a glass of warm milk. ;)
I am going to weigh in on this Mato Employee conversation.
Lets look at why you are an independent contractor for Matco instead of employee.:
1)You go to work whenever you want!
2)You buy whatever tools you want to stock your truck with.
3) You show up and collect money whenever you want.
4)You report and pay your own taxes.
5) You service what shops you elect to service when you want to service them and how often you want to service them.
6) You decide how much you want to invest into inventory.
7)You decide what truck you want to buy.
8)You decide if a shop is unethical and worthy of your service.
Now lets look at employee’s who might work for Matco.
1)Matco tells you your hours.
Let’s see this came up at my meeting in Stow, OH. It seems I missed days of work and this was one of the reasons I was let go according to Vice President Ernie Lauber and Mike Swanson.
2)Matco stocks your truck.
Doesn’t Matco stock your truck if your a Franchisee? Doesn’t it say that you can ONLY buy tools from MATCO in your franchise documents?
3)You collect money that Matco says is due when they say its time to pay.
Doesn’t Matco tell you you have to collect on a 5 week turn(TP) and actually frown on your franchise review if you don’t?
4)Matco pays taxes.
Doesn’t Matco’s MDBS system configure it automatically so you don’t have to as a franchisee?
5)Matco would give you shops to service and the order to service them and how often to service them.
Doesn’t a “List of Calls” do all of this when Matco gives Franchisee a route?
6)Matco would put the amount of inventory they wanted to sell on your truck.
Doesn’t Matco do this to Franchisee’s at DM meetings, start up inventory, Expo and being at 80% of the National purchase average?
7)Matco would decide what truck they put you in.
Doesn’t Matco push one company and one company only? How many trucks purchased by new franchisee’s come from that one company?
8)Matco will tell you to skip a shop if they don’t want you going there.
Doesn’t Matco count it against you if you don’t call on every shop on your route list no matter if you tell them they are unethical or not?
Todd, I am not attacking Junior, he says he is successful, I don’t care. He talks about money and numbers, I call that arrogant. I’ve given more to charity in the last 10 years, than he has made. But I don’t tout that in every message.
All I asked for was positive feedback concerning the claims made here about a Matco Franchise.
Why would I sign a contract that is so one-sided? Why should I trust Matco? That is what I’m asking. I don’t care how many vacations he takes, I don’t care how many Donkey’s he has. Why should I trust that Matco would give me an environment to succeed?
If you got a bad list of calls, fix it. But everything I’m reading is that Matco doesn’t care, won’t or can’t. Not one story about how they helped someone.
I’ve talked with a lot of distributors, all of the companies and independants. It’s not about the tools, its about the distributor. But it is obvious that these contracts are putting a little to much restriction on individuals to be successful. They terminate some and not others, And EVERYONE I talked with (dozens) buy to some extent outside of their franchise. Common answer: “I have to to succeed.”
Maybe I’ve missed the positive things that Matco does to help these franchisees. The contract only has one paragraph about the training offered.
Guest said: “It might take a while because his outside reading has been limited to a single article in Professional Distributor that he rereads each night with a glass of warm milk.”
Jealousy is an ugly emotion. As I’ve said before, I’m sorry this upsets you. It’s been several years since that article has been published, so for your sake, you shouldn’t have to see it again, unless you need a goal to shoot for.
ONE MORE…..Matco improperly requires its distributors to perform uncompensated work in violation of FSLA (Fair Labor Standards Act) minimum wage requirements as follows and which makes the distributor eligible for workers Compensation if injured as well as Unemployment Benefits, if terminated
3. COLLECTION AGENT – If another dealer sold an extended payment contract for more expensive items of equipment to a Matco customer, and the customer left the selling dealer’s area, or the selling dealer left, Matco expected other dealer’s to collect Matco’s time payment money, free of charge.
(**AND** the distributor taking the payments on the tool box – that they didn’t sell – also gets the ‘privilege’ of incurring the credit card FEES – EVERY week, so, not only are they performing the duties of a ‘collection agency’ –without pay- they are also INCURRING THE COST OF TAKING THE PAYMENTS!!!!!!!!!)
NO compensation, mechanic is most likely ‘tapped out’ paying his tool box payment and has no $$ left to spend on the truck,
NO compensation **AND** it COSTS the distributor money to take the payment
Debbie, the cost of PSA payments via Card (debit or credit) was raised via MDAC, their response was to ‘call in the credit card payment to the PSA department for processing’, problem was how you logged that into mDBS to properly record the payment. Not sure, but I think that since has been addressed.
Problem with calling PSA dept. Your time taken while on hold or waiting for a call back. And in your case(and mine) lack of cell coverage to make the call in the first place.
Another way for Matco to prevent you from ‘servicing’ YOUR customer.
Todd wrote – “Junior was a model Distributor and a Model DM …need proof before I could believe it.”
Junior – You know the truth, as I do about you. You’ve always been a straight guy and one of the hardest working I know. What I read about your situation tells me something stinks, and you may have a heck of an argument. But only you and Matco know the facts. Matco isn’t perfect, and neither are any of us. You do what’s right for you and your family, seek legal counsel and I wish you the best. You can call on me for support ANY time.
Todd wrote – “He talks about money and numbers, I call that arrogant.”
Junior – So do I, but it’s the other side of the argument on this forum. Without it we’d just be attacking one another. The balance to the argument is there are some that do succeed in and after the tool business.
I came here to expose Tommy Cheung. He has harmed more DBR’s over the years then he wants to admit. He is entitled to his day in court. Let a court decide if he is right and then go brag. But he has elected to brag before ALL of the facts have been heard by a court of law. And there is my problem. The impact on good people.
I’ve decided to pass the torch so to speak. Check out if you will. Going back and forth with Tommy is like sparring a lower belt in TKD, fun to kick em around but you feel bad about it afterwards. I’ve run my iPhone battery down too much posting while at the airport etc, Todd is a good friend and I can tell he’s mad as hell at Matco. His friendship means more to me than making Tommy look silly.
Lurking, again;
Kevin writes: “You’re as wrong as Debbie about workman’s comp and unemployment”
Still waiting for your analysis of Awuah v. Coverall North America lawsuit and why Matco is not at risk of the same type of action.
No pressure, but not only is the entire franchise legal community and the U.S. District Court awaiting your analysis, but Jerry is waiting to decide how big of a yacht to order.
Lets be loud and be heard, go Debbie, good job baby,hell yea.
Thanks Guest, its getting hot in here, lets roll, hell yea, I like it , lets keep it coming
Kevin, I am trying to screw matco, the same way you screw your customers. Go sell some tools made from overseas, not made in the U.S.A. LOL.
Why is it guest, Debbie & Tommy can attack, but others can’t back????
I try and post it takes two hours or never makes it on
After reading all these post all I can say is grow up people. If you believe you have a valid claim then contact an attorney and let the courts decide. Your not helping your case by being baited into these stupid name calling and people bashing episode. it goes toward your credibility,
If you believe you have not been wronged and things are going good for you then great more power to you and I hope your success continues. But you serve no purpose in bashing people. In my opinion that does as much damaged to the Matco name your trying to protect.
If you don’t have the intestinal fortitude to use your real name and hide behind a screen name. Then in my opinion what you have to say is meaningless and you have no credibility.
Stick to the facts if you have facts and documentation to prove your point for either side then post that. but name calling and people bashing doesn’t help either side. Your not in high school anymore you should be acting as adults.
In my previous post I have stated facts that I have. Does this happen to every one? probably not. I did do what I think is right for me and years from now when a court decides ( yes it will take years). win or lose I can live with the decision because I have already moved on.
First of all, kevin attack me, this site is about bringing issues to light, did we attack each other when we were all distributors? We supposedly had each others backs, what happen?
Post everywhere and lets be heard.
Tommy you actually believe Lenny is looking into this business??? If you do you are a fool,
Todd, not hiding behind Matco#1, junior knows me you want to talk to me he can tell you who I am.
Tommy you attack everyone what are you talking about?
Just got my notification to take the franchise business review survey, just for you Tommy I will tell Matco they are #1
Bob wrote – “If you…hide behind a screen name. Then in my opinion what you have to say is meaningless and you have no credibility.”
Junior – So if a sole distributor is failing then he shouldn’t have a voice?
Credibility was never my goal. Exposing Tommy Cheung for what he is was my goal. You don’t get to disrupt your district meetings, challenge company policies you agreed to follow, fail and then point blame on others. At the risk of “credibility” I write. Tommy Cheung failed as a distributor because of his own actions. My name didn’t matter then and doesn’t matter now, but Tommy’s does.
So hard to lurk around here with so many stupid comments.
Junior- I think your missing my point. I personally don’t know anyone on this board. I found it by accident. My point is there is a lot of bashing and name calling of people being done by persons that hide behind a screen name.
Everyone should have a voice but stick to the facts of your case. If you have facts that discredit someone’s story great they should be posted.
But really there is so much BS on here that doesn’t apply to the discussion that helps no one.
Junior I have read your post and actually my comments were not directed at you. You obviously have personal information on Tommy and a strong opinion of what caused him to fail.
I know some distributors fail because of their own undoing and shortfalls, and some because of the business plan. Some people will never admit they made mistakes and always blame it on someone else.
I am also sure there are many distributors who are still active but fear reprisal if it was found out they were posting on here. I’m sure Matco has someone monitoring this site, I don’t blame them. But if your sole purpose is to belittle people who feel they have a legitimate complaint. because you just disagree with them then step up and use your real name.
By the way I have already figured out who’s comment’s I think are credible and who is just trying to stir the pot.
Nov 20th 2008 Tommy wrote (on http://www.programcritique.com) “IN MY OPINION, I WAS TAKEN FOR A RIDE BY MATCO. I PURCHASED A FRANCHISE, THINKING I OWNED IT, THATS NOT TRUE. MATCO CAN SHUT YOU DOWN WHENEVER THEY FEEL. DO NOT BUY A MATCO FRANCHISE. CALL TOMMY AT [redacted].”
Junior – They just wake up one day and pick one completely out of the blue, right Tommy? Nothing you could have done to bring attention to yourself right?
Tommy is looking for work I guess – http://www.laborjobcentral.com/jacksonville/2011/12/tommy-cheung-needs-work-jacksonville/
Junior – Now that’s creative.
Feb 18th 2009 Tommy wrote – (on http://www.programcritique.com) “ IN MY OPINION, MATCO GETS PEOPLE WITH GOOD CREDIT TO SIGN ON,THEN SETS THEM UP TO FAIL. ONE DISTRIBUTOR WHO I SPOKE TO WAS QUOTED BY AN EMPLOYEE OF MATCO AS SAYING, MATCO NO LONGER CARES FOR THEIR DISTRIBUTORS, ALL THEY CARE ABOUT IS SELLING STARTER INVENTORIES FOR THE NEW GUYS.”
Junior – Who was this employee Tommy? They have a name? According to Bob if they don’t have a name then whatever they say doesn’t matter.
i find it very hard to believe that this is my business when they monitor everything that you do they know what you sold ,when you sold it, who bought it and for how much and whether or not you bought it from matco. they designed the mdbs for them not us. thats the biggest reason that we have to download everyday. then when they see where you are making it and not spending your money with them then out comes the rule book and then you are gone. the only time that i have ever seen the company rule book referenced is when the company wants to fire you.
Bob wrote – “Everyone should have a voice but stick to the facts of your case. If you have facts that discredit someone’s story great they should be posted.”
Junior – True statement. We agree.
So Tommy, you claim Matco is a SCAM, any facts to back that up?