MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• “The only one here that’s actually told a story about what’s actually happened to him is Todd Peterson.” Sure, Jr. Wrong as usual.

  If anyone wants to see some of the stories of others you can use the search function in Internet Explorer (under the “edit” tab choose “Find on this page”) and paste in the following one at a time.

  Todd Allen Peterson on November 16th, 2011 4:01 pm
  richard on November 21st, 2011 1:03 am
  Gary on November 21st, 2011 6:02 pm
  Tom on November 22nd, 2011 11:24 pm
  Tom on November 23rd, 2011 12:57 pm
  anon on November 27th, 2011 12:19 pm
  Pat on November 29th, 2011 9:36 am
  Bruce on November 29th, 2011 11:38 am
  Former Distr on December 1st, 2011 9:25 am
  Happy2bout on December 1st, 2011 1:49 pm
  Todd Allen Peterson on December 1st, 2011 1:58 pm
  Former Distr on December 6th, 2011 12:06 pm
  Relentless on December 8th, 2011 2:23 am
  Bob Tremblay on December 16th, 2011 7:40 pm
  Bob Tremblay on December 16th, 2011 9:36 pm
  Todd A. Peterson on December 21st, 2011 3:09 am

  Todd Allen Peterson gave a long and detailed account of his mistreatment, and so did many others with very similar negative experiences.

  Junior identifies with Todd, Kevin identifies with Tom as good distributors who got screwed over, but still deny there’s a problem. They must be isolated incidents. Everyone other than their buddies must be lazy slackers, despite the fact that many tell the same exact stories.

• Tom, I know the facts I was a DM, transwest does not pay dm’s for running a lease thru them. Transwest does not pay one cent to any dm for anything, so I will post that she is lying and putting up false claims because she is!

• Tom wrote – “I admire you blind faith to your company. That is to be commended. But step back and take a minute. Think about your own experiences and of others in your district. Can you HONESTLY say that this things couldn’t have or never happened?”

  Junior – I don’t recall anyone of us saying NOTHING could have happened to you. But there truly aren’t any two stories alike. The end product is a separation but how each person got there is actually different. Different routes, different DM’s, many differences.

  So what we’re all doing here is arguing about pieces and parts, claims and opinions. It will never be settled here. One person dreams up a claim like DM’s get kick backs from suppliers and the other side goes crazy.

  Until folks learn to back up a claim before they make it and provide proof of a claim it will go on and on. Opinions are fine, but an opinion that holds a claim is still a claim.

• kevin, matco-1 – you must know the requirements to ‘sell’ a franchise’ The FDD is public domain..

  Of course, we know you have nothing to sell, but the collectible TP.

  Lets see, who controls MY TP….mmmmm ME? nooooo ahhh Matco does! Read the FDD. Matco controls the TP in a potential sale/transfer.

  But wait a minute, its my money, I purchased my product and I sold it at my cost. I earned my Customers, not Matco. nahhhh yur wrong!

  Transfers of Time Payment Accounts Receivable. (in addition to article 10 of the contract)

  Its your money but Matco controls it. Sweet.

  IT IS NOT YOUR BUSINESS. Matco owns you… that is until you get into court.

• thank you guest for chiming in on the others have posted their claims.
  we just had a dbr close out his business to someone else. that dbr bought his truck but not his inventory. the previous dbr sent back 40,00 in inventory, got 15,000 sent back to him and charged shipping for it. lost 15% on what they accepted and was charged 2500 in misc charges for handling. why was he not allowed to sell his current inventory to the new dbr.
  because matco starts a new dbr with already expired inventory trying to clear their shelves of old inventory. call me a liar on that. that is how they play that game.
  if you dont team up and fight then you lose your ass. there is some safety in numbers and it proves what is really going on.

• i have 15,000 in tool boxes but no one wants to help me move them. why , they are already paid for , my problem not theirs.

• So “guest” what’s your story. You haven’t said how Matco took all of your life savings, or cut your route.

  I guess we can all determine “guest” is doing very well as a Matco distributor since he has not complained once about his route.

• Tom wrote – “Are we all liars? I guess we are”

  Junior – I never used this word towards you. I have no clue what’s happened to you and who you are. I respect the fact that you took it to court and had your case heard. That’s the system.

  I know Tommy and Tommy’s case. He has not been completely honest. He caused his own demise. I have no respect for someone that bucks the system, fails, and then blames others.

  My other issue here is flat out false claims like what Debbie just posted. It isn’t even remotely possible that Translease paid a DM a kick-back. Matco#1 and I personally know the decision maker there and he would NEVER risk his business like that. And no Matco would never allow it either. Just a flat out lie.

• Richard, what do you have, and are you close to the west coast?

• I don’t lie………….

  No matter what the “name” DMs get money for sucking new people into the business
  No matter what the “name” the lease company has Always been in bed with Matco
  No matter how vehemently they deny – Matco knows they are signing distributor and hopes they fail within 2-3 years – the victims call it churning

  I personally know the nephew of the man that leased me my truck from TransWest. He told me he really wanted to go into the tool biz. He told me
  his Uncle (the man that leased me my truck) –his Uncle told him NOT to be Matco Tool distributor. His Uncle told him he couldn’t make a living and
  it would be a waste of money.

• my truck came from translease, who is transwest

• While the whole new Matco Debit Card deal may be “legal” it certainly is
  wrong, feels like slimy way to cheat the customer.

  It is just a DEBIT card………………DEBIT

  Matco’s new Debit card…. Genius – not
  Tech has to drive to a Money Gram location and deposit his money
  THEN has to PAY everytime to use
  THEN has a false hope of winning $5000 everytime he used
  THEN if tech has paid for an Elite level – Matco will afford him
  30 whole minutes with Customer Service – oh forgot
  “personal assistant” – only the common folk call it Customer Service and
  make that call for free
  BEST? Part- distributor gets a KICK BACK everytime
  poor tech uses his own money – that he already spent
  Some of his own money driving to someplace that would
  Him to load his own $$ on this card
  NOT same as the Debit card most of us already have from our banks – I never pay a fee to use. Matco’s debit card has no choice
  WORSE Matco expects DBRs to peddle this crap!
  We are not financial experts – yet we are tigons financial advice and
  Convince guys this crap is good
  Wrong!

• Tom who was your RM?

• Guest wrote – “Todd Allen Peterson gave a long and detailed account of his mistreatment, and so did many others with very similar negative experiences.”

  Junior – I’ll rephrase…Todd uses identifiable data, points that brought me to understand and/or believe his story. Names help because I know most of these people and can understand a situation better, but mostly Todd has given great detail in terms of his purchase avg, business mix, LOC detail and yes I know him so that plays a role.

  I will take some time and read some of these but at some level we gotta call this what it is; a big argument over claims. You had an issue with Matco? Go to court. But this posting of false claims, and we know who they are, is a waste of time.

  I’ve said it and I’ll say it again, Matco is not perfect. But no one here is. If they have crossed the legal lines then go to court. But all this BS about DM’s are trained to lie, and DM’s turn over DBR’s for bonus’ or at the direction of Matco is bullcrap.

  There has never been a master plan to do any such thing. With that said, have bad people been brought into the Matco system and went on to make poor decisions that could have added to an already suffering business? Could be. I’m one man with one experience and can’t comment on who or where.

  I can say that Matco’s plan is to sell a franchise, bring it to above NPA, then retain it. When you’re dealing with people you’re bound to get just about anything. Just look at the crazy accusations tossed here.

• Debbie wrote – “I don’t lie………….

  No matter what the “name” DMs get money for sucking new people into the business
  No matter what the…”

  Junior – Not so fast Debbie. You dodged the challenge to your claim. Who rom TransLease paid what DM at Matco a kick-back? You made the claim you must have based it on something, what was it?

  Tommy has lost credibility over the years for making claims and never backing them up. Back up your claim with something that proves your statement.

• I don’t lie

  I document everything, everything…..

  I CAN back every word….

  The problems HUNDREDS of current and former
  Distributors have and had with Matco will
  neither be solved or proved here

  However; the wonderful thing is – BECAUSE this
  Discussion IS so highly debated – Thousands are
  now aware….

  OBVIOUSLY – there IS something wrong!

  Each and every detail….
  Every personal attack….
  Every denial…..

  ONLY strengthen the facts!

  I don’t lie – I document everything –

  * non viable routes knowingly sold
  * inaccurate head counts – misrepresented income projections
  * etc

• I was told I was getting a mountain route.

  Surprise, back from school and then I’m told,
  “the numbers just weren’t there, we have given
  you a couple days In town”

  Yep, over 100miles away- and given “back wash”

  Random shops “in town” that are next door to shops
  Serviced by other DBRs!

  Jody Baker-Stow Marketing Dept rode with me
  Questioned the Obvious – Why are you skipping neighboring
  shop? Explained they were assigned to another DBR
  Also, explained the Obvious – the no revenue shops other
  DBRs discarded – were then given to me – merely
  to fill in my head count. – “backwash”

  I begged for a whole year for a re survey

  I had Tim Novak visit my truck and ask “how he could help”
  Explained I needed customers. Tim said, he would have Doug Heersink my DM
  re survey my route, then he Asked Doug when the last survey was done

  Wow, Tim ASKED when a survey was done – 6 Weeks before-
  Tim Novak Approved the supposed re-survey!

  Problem? I never signed the supposed re survey as it was
  Completely False!

  SEVERAL shops “surveyed” had never seen nor spoke to my DM,
  Yes, documented, shop owners in writing!

  Then there is the letter to Willis and Lauber, they
  Replied that they could find no orders or invoices
  supporting my issue (a locker and box problem)

  I document Everything- so I sent the copies of my Matco
  Invoices that proved my issue, And NO reply-

  So, again, I dont lie!

  Nothing will be solved or Proved HERE
  ….additionally, nothing NEEDS to be proved here

• To be perfectly clear,,,,,

  For WEEKS I asked Doug Heersink to provide me with
  the results of my Re survey

  For WEEKS Doug told me he needed Tim Novak to approve

  Still no copies of this re survey given to me

  Tim Novak Ambushes me on my route/ the time I had
  Available to meet – didn’t fit HIS schedule, so he just Shows up!

  Then Tim tells me he Will have Doug re survey

  Tim Supposedly Already Approved a re survey that
  Was Supposedly done weeks before

  Flat out Caught in a LIE

  I DON’T LIE
  Matco lies to me….

• I didn’t give him credit, matco did, like usual matco looks for ways to set people up for FAILURE. Churn and Burn from matco distributors to technicians, way to go matco, screw everybody, but the FEDS are coming and so is JERRY.

  Matco should know not to give a young kid, fresh out of school, a high credit line,thats balz.They wanted to see this young kid fail, like usual.

  Matco should not have us doing repo’s, especially when is against the law in some states, what the hell does dicaudo do, anything, he is a lawyer and dosent understand the LAW.

  FACT- The FEDS are coming
  fFACT- So IS Tommy, Jerry and the Gang
  Fact- Tommy and the Gang will continue to post everywhere and anywhere.
  Fact- At whatever exoense, and if you fail because of it, go blame matco, they put us in this position to do whatever it takes, this is to the OBC club.
  Fact- matco had me do repo’s and break the law
  Fact- matco terminated alot of distributors, some legal and some illegal
  FACT- my termination letter, dosent even have a date for seperation, as far as I know, I am still a distributor, I should call and order some OVER THE SEAS MADE TOOLS, AND TAIWAN MADE MSC4 CARTS.
  FACT- If the OBC club gets their feelings hurt, get over it.
  FACT- The back of the trucks state’ DRIVE YOUR OWN BUSINESS’, THIS IS A JOKE.
  FACT- Some people,OBC club, are getting mad.
  FACT- Over inflated head counts, my doc’s show it.
  FACT- Never completed the seeding of my route . Matco rep wanted to go home,to over see his guys.

• As long as you are a current distributor, your fellow distributor is your buddy, but once you are gone, they wont watch your back or try to help collect and send your money to you.

  Part time brothers, help you while you are in business and stab you you in the back otherwise, just because you have to try and help collect their money too.

• I haven’t lost anything, but in case I do, it means more to me to get the word out about how matco treats their people and tech’s than money.

  It means more to me to spread the word about their illegal practices they do than anything else.

  YOU CAN NOT TREAT PEOPLE THEY WAY THEY DO AND GET AWAY WITH IT.

• Tommy back to the OBC thing again.
  .
  Fact: Debbie Lied about the kickback, cant back it up, because it is a flat out LIE! It doesnt hurt my feelings, it destroys here credibility.

  WHy do we waste our time on here????? Because of the flat out lies.

  MSC4 carts are a great seller, and YES Tommy I have no problem telling my guys where they are made. If they want a USA cart, buy a JSC500, JSC750, or a MSC12. You probably never sold one of those

• Junior proclaims the the Matco system is “nearly perfect” despite overwhelming evidence that there are serious problems resulting in devastating consequences.

  Of course Junie, Kevin, MATCO#1 and the rest of the Old Bullies Club feel pretty confident attacking struggling or former Matco distributors. “They are lazy, don’t follow the system, blame others,” blah blah blah…

  Let’s see what lengths they’ll go to when the evidence comes straight from one of their own: former DM and Matco Exec Chuck Bergen in sworn statement.

  Charles “Chuck” Bergen was with Matco for 10+ years as District Manager (DM), Franchise Sales Specialist (FSS), and Franchise Sales Manager for the North East. The Matco class action lawsuit document (http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/) includes a sworn statement from Bergen:

  “In my capacity as Franchise Sales Manager, I became fully aware of the numerous distributor abuses that were developed by upper Matco management and have identified the following nine practices that account for the large failure and turnover rate among Matco distributors:

  I. Inflated List of Calls
  The “List of Calls”, or number of potential tool buying customers surveyed and developed by Matco District and Market Development Managers, sold to the distributor is inflated and inaccurate. It also includes customers that have little or no chance of ever buying tools from the distributor and, more importantly, qualifying for PSA (Purchase Security Agreement) financing which finances “big ticket” and big profit items such as tool boxes and diagnostic equipment.”

  I will post the others separately.

  Does the Old Boys Club care to dispute the dbrs claims of inflated and bogus lists of calls when what they’re saying is backed up by a high ranking Matco whistleblower?

• First question I ever asked, how many full time mechanics do you have that are required to have their own tools to perform their job.

  Now guest, answer this before I answer another, what’s your story? I don’t care about everybody elses story, what happened to your route?

  I think we need to change OBC to OSC, if you insist on me being old and successful.

• Guest , the OBC club will ignore the question, they do not know not to answer that one.

  I asked earlier, what they thought about Chuck, and not the first one answered.

  They were taught by matco to ignore and maybe the question will go away.

  I looked at my seperation letter last night and there is no seperation date (as of)
  on the letter and it’s not copied to (district manager), its blank, does that mean I am still a distributor? Can I still purchase some tools made by other people or other countries, other than the U.S.A.

  The document is incomplete.

• More from former DM and Matco Exec Chuck Bergen in sworn statement:

  “ii. Churning List of Calls
  List of Calls or territories that have failed before are resold time and again by DMs 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. In addition approval of a new applicant is also based upon Matco’s self-interest in terms of PSA exposure in the route, meaning that the more Matco financed PSA debt outstanding, the lower the standards will be for distributor qualification.”

  This is from a Matco insider, a high ranking exec, not a “whining” distributor. This is not so easy to dismiss by the Matco Old Boys Club, as this statement is from someone who made more money than them with Matco, though I’m sure they’ll try no matter how foolish and unethical they’ll look.

  Next… Deceptive distributor rides…

• The third of Chuck Bergen’s “nine practices that account for the large failure and turnover rate among Matco distributors” is Deceptive distributor rides:

  “iii Deceptive Distributor Rides
  The prospective distributor is taken on two “check rides” with distributors that have a much better or “established” route rather than the “cold” or churned route the new prospect will receive.”

• Guest where was your route?

• Man guest you just gave me a Christmas present. Thank you, you see when I was a dm I was always puzzled how chuck had so many starts, you are showing us his secrets, what an unethical person he wad lying on headcount, steering candidates to ride with only successful dbr’s, here I wad playing by the rules and this dirt bag was out doing all that, Tommy should sue chuck since Chuck was doing that. Then chuck becomes a fsm, probably forced his unethical thoughts on dm’s below him, since he was in charge of them on franchises.

  Thanks again guest chucks true colors are out, he wasnt playing by the rules

• Guest, I can’t tell you how happy you have made me. You know when Matco fires a guy they never tell any of us why. You are showing us why chuck was fired, can’t believe how unethical he was. It is no wonder why my old fsm is still around, he wasn’t out there lying like chuck.

• Debbie wrote – “I document everything, everything…..
  I CAN back every word….”

  Junior – Debbie, I’m the DM that came to Denver from New Mexico and held one of your meetings while your district was without a DM. (I have my pilots lic, if you’ll recall I had rented a small plane while I was there). We had a great meeting, lots of open discussion. You took my card and I promised to get Tim’s approval to comeback and spend whatever time you wanted on your route. I was serious, like Matco#1 we were dedicated to DBR’s regardless of their district.

  We spoke once on the phone, but I can’t remember why we never put it together. It just occurred to me who you are. I’m really sorry to hear what you are going thru.

  I challenged you on the TransLease claim because I am 100% certain no such kickbacks have ever been paid. Randy and his team are the best in the business. There have been times when I have had asked for favors for my DBR’s but not even them would they bend the rules.

  Are you aware of a DM getting a kick back or did someone else convince you that this takes place?

• Tommy wrote – “I didn’t give him credit, matco did, like usual matco looks for ways to set people up for FAILURE. Churn and Burn from matco distributors to technicians, way to go matco, screw everybody,”

  Junior – How’d he get the application? Where did he get the tools? Who explained the program to him? Who printed the contract? Who signed the contract with him? Who called Matco requesting credit for the kid? Who did Matco call with the approval? Who handed the kid the tools? Who collected weekly payment?

  If you were SO concerned about this young man Tommy why didn’t you either transfer the contract or buy it back?

  In this case Tommy you have responsibility too. So let’s not pretend Matco screwed anyone. They relied on you make good decisions on whom you were selling on the plan and they relied on you NOT to over sell. I want to hear you accept some responsibility for your part.

• Guest, I am blown away by Chuck’s comments. I had heard rumors about how he had conducted business but this is sick. Guys like him have caused us all to work harder to recover a name.

  So this is why Matco fired him. One bad egg there. Well, if he hurt DBR’s he should pay.

• Charles “Chuck” Bergen was with Matco golden boy, being promoted numerous times in his 10+ years from District Manager (DM), to Franchise Sales Specialist (FSS), and Franchise Sales Manager for the North East.

  In the Matco class action lawsuit document (http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/) Bergen gives a sworn statement in which he identifies “nine practices that account for the large failure and turnover rate among Matco”

  Here are numbers 4 & 5:

  “iv Underestimate of Distributor Expenses
  Up and through 2007, the expenses Matco distributors were expected to incur were all “low balled” All expense and cost estimates were provided to recruits by Matco. This would include, but not be limited to under estimating bad debt, warranty return costs etc. Only after 2008 did expenses become more realistic as is evident from the difference in the 2008 estimated expenses cost from the 2007 estimated cost sheets attached to this declaration (see attached estimated costs sheet)

  “v District Manager conflicts of interest
  An inherent and undisclosed conflict of interest exists between district managers (DMs) and distributors because although DMs are represented to distributors as “business coaches” and “partners”, they are paid commissions on tools sold to distributors. If distributors don’t buy, DMs, whose compensation was based, in large part, on distributor tool purchases, don’t earn their sales commissions. Accordingly, distributors are subject to aggressive sales tactics used to sell more and more tools to distributors regardless of their ability to re-sell the tools.”

  Coming up:
  vi No Room to Grow – Over penetration
  vii Credit Hypocrisy
  viii Non-supervision/Assistance – Diluted district Manager Supervision
  ix Usurping new customers

• MATCO#1 said: “Guest where was your route?”

  I wish this site had all those little laughing faces to post. I could fill a paragraph after this question. Funniest thing I’ve seen in a while. Guest is a poser and a liar, but again, I hope he sticks around to show prospective distributors what the WMD is all about.

• Chuck Bergens sworn statement continued:

  ““vi 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”

• So, here we have Guest, a proven liar, doing the copy-and-paste thing about a guy who’s a proven liar, and was fired by Matco. Not sure what the point is, but it works for me.

• Guest my customer count has grown…where you able to grow your route?

  Guest did you use a tote tray?

  Guest did you talk to every potential customer?

  Guest did you go to expo?

  Guest did you attend your sales meetings?

• MATCO#1 said: “Guest where was your route?”
  Kevin said: “I could fill a paragraph after this question. Funniest thing I’ve seen in a while.”

  A former high ranking Matco executive blows the lid off the the dirty secrets and unethical tactics that have taken a devastating toll and ruined lives and livelihoods of hundreds of good people, including many who are posting and reading here.

  What is the Old Boys Clubs reaction? “What is Guest’s identity?”

  I find these reactions and responses just as telling as Chuck Bergen’s testimony. These guys just don’t care.

  At least Junior acknowldeges the despicable nature of what Bergen is reporting, and has softened up on Debbie. I hope he doesn’t just join the others with the lame “Well this was just Bergen alone and now he’s gone.” Seriously, you think this guy did this stuff behind everyone’s back. Matco was paying a million dollars a year in sales bonuses and commissions. Think they weren’t aware of how their own sales process worked?

• junior and matco#1, you guys must have really been Out of Touch with the Matco system, all of these reports of deceiving practices going on around you and you never witnessed it happening?

  I’m not calling anyone a liar, but you both must have ‘looked the other way’.

  When I contacted the RM about my DM’s practices, he too apparently looked the other way.
  When I contacted Tom Willis, he as well ‘apparently’ looked the other way. Of course, if you were to expose the truth, you would end up like Chuck Bergen.

• Guest, I couldn’t care less who you are, because I know WHAT you are, and you obviously have a lot to hide.

• MATCO#1 wrote “Guest did you use a tote tray?”

  Seriously? This is your reaction to Chuck Bergen’s sworn testimony? Did I use a tote tray? HaHa!

  You gotta love these guys and their hilarious antics. I’m starting to think MATCO#1 is really a Snap-on operative trying to make Matco supporters look moronic.

  Former Distr wrote: “junior and matco#1, you guys must have really been Out of Touch with the Matco system, all of these reports of deceiving practices going on around you and you never witnessed it happening?”

  In other words, are the DMs and above A) clueless as to what is going on? or 2) clued-in and indifferent? or 3) clued-in and participating in the same tactics?

  Bergen’s testimony is very revealing beyond the 9 reasons also. He recounts how Matco kept getting dropped by lenders because of the high failure rates and had to go to smaller, regional banks. They had would give $1000 bonuses to DMs if they could get new distributors signed up with SBA lenders and not Matco financing. Then Matco wouldn’t suffer the default, according to Bergen.

  So, yes, Debbie, the practice of secret bonuses and kickbacks and DM conflicts of interest seem to have a rich history in the Matco system.

• Former, we all worked out of our homes, we didn’t have an office to go into, so it took a while for rumor to circulate.

  Guest I wouldn’t call chuck an exec, we will leave that title to you.

  Speaking of looking the other way, guest where was your route?

• All Right! So Chuck Bergen is lying?

  Feel free to call me a liar as well!

  But remember!

  My case is not settled yet!

  And “YES” I will feel compelled to add slander to my campaign if you can not add facts to prove my accounts wrong.

• Junior- Thanks to Matco making me sign a “no speaky bad of Matco”, I can’t give you the proof. It will come out though. I would LOVE to openly talk about ALL I learned in case against them!

  But Matco is good at “cover your ass”.

• Matco whistleblower Chuck Bergen (In the Matco class action lawsuit document http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/) gives a sworn statement in which he identifies “nine practices that account for the large failure and turnover rate among Matco”

  Here are practices 7-9:

  “vii Credit Hypocrisy
  Matco will extend credit to mechanics to purchase large purchase 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 his own credit and guaranty on PSA “gold card” purchases to those mechanics who do not have Social Security numbers or other proper worker documentation.

  “viii Non-supervision/Assistance – Diluted district Manager Supervision
  There are not enough managers per distributor to provide meaningful business assistance which should include sales assistance to business reviews.

  “ix 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 Matco can use the new shop as part of a new List of Calls to create another route and sell an initial inventory to a new distributor.”

  Some of these practices sound awfully consistent with dbr stories here, don’t they?

• By the way! My name, for the record is TODD ALLEN PETERSON.

  I also served 3 years in the Regular Army.

  This is my STORY!

  Here is what Matco did for my FRANCHISE.

  First the Distributor before me only worked 3 days on a Matco route and yes I bought it. I also bought his truck. I could have taken a route closer to where I lived but I liked the truck and established customers. Did not want the Isuzu Matco was cramming down my throat.

  So I went to this distributors house and I saw his financials. I cringed he was not doing well. Of course, he only had 3 days on route per week the other two and Saturday he was restoring vintage cars.

  I talked to DM who had told me this was a great business opportunity and explained to him I had my doubts about the route. I told him I didn’t think by looking at the financials and the amount of customers on the books I could be competitive with the 333 customers I was given which was largely made up of very few shops:

  Monday- 13 shops 68 customers (One shop had 5 customers and while I was riding around with Trainer the first week he informed trainer and myself that he had told DM he didn’t want a Matco truck on his property) So -5 equals 63

  Tuesday- 6 shops 73 customers (5 shops were part of 1 Auto Park) it was really two shops.

  Wednesday-3 shops 68 customers

  Thursday- 4 shops 76 customers

  Friday- 7 shops 48 customers

  Grand total of 33 shops and 328 customers.

  So I explain to DM that this is a very low number and I think that distributor I did ride with has a lot more customers and definitely a larger route.

  He tells me “that Matco usually gives Distributors a minimum head count and leaves it up to them to grow their own route.” That made sense to me. People who work hard succeed and those who start up a franchise and don’t work will fail. He assures me that I will pick up shops that need a Matco distributor because they will call me when they see my truck on the road and get the number off the back and side of truck. He also tells me to call him if I want to add a shop so that I don’t pick up shops that belong in someone elses area or on an open route.

  So i go to training come back load up my truck and start my franchise. Things were terribly slow in the begining. Learning the computer, talking about tools instead of turning them. But after two months I found myself going home early every day two days by 2:00 and 2 days by noon. The other day 7-5.

  I was hitting all the shift jobs during the daytime when other distributors serviced them and I got to thinking when I was a tech and how it made me feel when other tool guys would not come and service me on a third or second shift. So, I restructured my route and started working longer hours and as people called me and needed service I would add them to my route calling my DM for approval first.

  After about 6 months I was kicking ass! My customers loved and respected me. I would work late come on their shift and not in between shifts. My DM was plastering my walls with sales achievements plaques from meetings. Life was good.

  I filled the holes in my day with shops I added with DM approval.

  Things are going so well I was inventory rich. I was putting on my truck 3/4 in drive everything. I was stocking specialty tools out my butt. I was adding pliers and all kinds of tools I thought I would need when I turned wrenches. I was living the Matco dream.

  In June of 2005 I had a fire on my truck and found myself in a bit of a pickle on a tool truck. It seems that no companies(Not Matco’s Vendors) except for the manufacturer of my truck would take my truck in trade. So I did trade my truck in and got a bigger one because I had grown my inventory to over $200,000 my cost. I bought a 26′ Peterbilt.

  So although I was without an actual tool truck for 6 months I had acheived a top 50 ranking with Matco Tools in 2005. I worked out of a temp truck and it was such a piece of crap that I ended up working out of my Jeep Cherokee a bunch.

  So at Cancun, Mexico Expo in Feb. 2006 I receive an award from Matco being 41 out of over 1500 distributors from my new RM Tim Novak. I also received a GOLD sales excellence ring as well. Our whole District received awards for being a #1 District. Our DM was pumped. He was talking about growing our District and helping our Region become #1 in 2006. I purchased around $25,000 at Expo.
  I remember Tim Novak asking me to tell the other distributors in our Region what I did that made me so successful. I told them say hi and talk to every customer in the shop every week. Work longer hours than your competiton. Tote and promote Matco products.

  In less than 3 months after Expo my DM was fired. A fellow distributor would quit has franchise (I believe he was 45 out of 1500+) and I would be threatened by Tim Novak to surrender shops I had established with my Ex DM (of which I had PSA written and credit apps approved and denied.) or I could lose my franchise.

  Having Tim Novak in my home and knowing that I am heavily invested in tools and truck and with Tim threatening my franchise I caved. He left me with Rick Pena to decide what shops I would be surrendering and I did.

  Before Rick Pena came to me he and another DM surveyed our entire area and only found around 100 shops not getting service between me and another distributor Bud Cook. Rick explained to me that during his surveys he only found two shops that had negative things to say about me and that over 95% of my customers were happy to have me as their distributor. But he also explains to me that one of the reasons my DM had been terminated was because he had promised a new distributor Michael Johnson a Distributor Franchise but had not surveyed a route to put him in. Rick had been tasked with the duty of finding this Distributor a route. I suggested to Rick that there were at least three different routes available in Little Rock and I knew that there were others elsewhere but Rick said that this distributor was promised a route in NWA. I told him I didn’t care and that everything I had had been approved through my DM to call on. I even told him about shops I had picked up temporarily to help prep a route Kevin Hodges dad Gerald had taken so that TP would be established and customers broken tools would get serviced before Gerald got there.

  He showed me his survey sheets and I asked him if I could keep them. I DID!

  He showed me sheets with tacks on them in different colors showing shops with no service, shops with my “LOC”, shops I was calling on but had not been signed into my route list. I asked if I could keep them. I DID!

  I told him that I wasn’t giving up one shop and that I was servicing them all and he himself said my customers were happy. He said that is all true but this distributor was promised a route and my shops that I had added were not secured on my route list. I told him my DM gave me approval to call on them. He informed me according to my contract that they have to be in writing and signed by me and DM. I told him I didn’t care. I also told him maybe it was time to talk to a lawyer.

  Fact of the matter is I was still paying off tools ordered from Expo. I owed over 10,000 on deferred payments of inventory that was rolling in months after Expo. I couldn’t afford an attorney at that time.

  But soon Tim Novak flew in from Texas and threatened me with my franchise. Showed me the same tacks on a route maps (which I kept Yes I have Tim and Rick copies of the same goople map crap) I ask him point blank “Can I lose my franchise if I don’t surrender shops” he says “Yes”.

  So I surrender because although I was sure I was right and I new my fired DM gave me those shops it did say it had to be in writing. I felt it would be better to float in the boat than hire an attorney and maybe sink it.

  Tim left and I gave Rick enough customers to give Michael 338 customers on his “LOC”.

  So I am thinking it is a shitty deal but it is over. Not so. Rick comes back to my house and tells me that I gave Michael “JUNK SHOPS” and tells me “Michael deserves the same opportunity you had to become a successful distributor.” I tell him. Yeah he is right and that him being successful is going to destroy me. He tells me I am a good salesman and that I can build it agian but this time make sure your DM does his job. I tell him I am “but I have a large inventory and a new truck. How am I going to make it with the bills I have. He tells me I will manage. Then he tells me he has been authorized to give me 3 MB4725 for my trouble. I told him I could buy four in one month with the over $2000 a week in TP I was being forced to give up before I give up more customers. He tells me well you can take the boxes and surrender the shops or not take the boxes and surrender the shops either way Matco was going to give him more of my shops.

  So, I gave him every 2nd and 3rd shift shop I had. My thinking was if this guy wanted my success he was going to have to work the same way I did to get it. So Mike ends up with over 450 customers to call on. I am reduced to 350 and a lot of what I was given were shops that Bud Cook didn’t want to call on. Yeah I can say that too because I have Matco route sheets to prove it.

  One of the last things I asked Rick to do was when I found new shops that I would be allowed to call on them. He told me he wasn’t my DM and he thought that my new DM Anthony Kramer (who was a previous Snap-On distributor and had been in my District as a Distributor for less than a year) could help me establish new shops on my route list.

  So within two or three months of surrendering shops I have two brand new shops opening up on a street where Bud Cook and myself overlap on Moberly Lane in Bentonville. I call and ask Anthony about a month before they actually open if I can call on them and he says to get him an address when they open with the name of the shop and customer count and he will add them to my route list.

  So I swing by on Wednesday, the day I service that area , and they inform me they already have a Matco distributor and he came by the day before. So I call Anthony and ask him if he gave the shops to Bud Cook and he tells me “No”. I remind him that he told me I could call on them and he tells me to call Bud.

  So I call Bud Cook and ask him if he is calling on the new shops. He tells me “No. I gave those shops to Michael Johnson.” I say “Okay” and I call Anthony back. I ask Anthony “Since when do distributors assign shops to other distributors?” Anthony tells me “They can’t” and I tell Anthony “Then why did Bud tell me he gave the shops to Michael Johnson?” He tells me “He can’t do that.” I tell him “That’s your job. Right?” and he says “Yes”. So we hang up with the understanding that I will be calling on those shops. Then I get a call from Anthony telling me that “things are going to stay the way they are.” I can’t believe it.

  So I don’t give up I tell him I need to talk to him. He comes to my house and tallks with me and my wife. I tell him that is wrong to let a distributor call on shops when he doesn’t have any shops on that street already. Not to mention the fact that I put him in business and he already has more head count than I do. Anthony once again tells me those shops are mine and that I am right and this should never have happened.

  Two days later Anthony tells me that this decision is not his and that “It is out of my hands.”

  Over the course of the next two years I will lose a large percent of my customers due to an ailing economy. I will have multiple shops close and work reduction in every shop I have. Hardly no new businesses will open doors and many will open and close within a years time.

  Sometime in the Spring of 2009 I will tell Anthony I need a route resurvey done because I do not have anywhere near the minimum a new distributor has to start a new franchise. He tells me he is very busy but can get it done around the fall.

  In Nov. 2009 I will call Anthony and plead with him that I am fixing to lose an Important dealership who is closing their doors forever Bob Maloney Ford and that it is imperative that my route be resurveyed. I am told once again that it is the Holidays and in the New Year it will happen.

  Then in January of 2010 Anthony sends me an email stating I am at a YTD purchase average of $1,608.02 and that I am not at 80% of the National average. It also states that “Our end-user customers expect and deserve Matco products from their Matco Tools Distributor. Since I didn’t find this email until after I was terminated because Anthony knows I have never communicated by email. I ask you why would a DM who’s job is supposed to be supporting distributors not at least call me? Is it because I had already asked once and begged another time in the same year for a resurvey?

  So Anthony said resurvey in the new year. It never happened!

  On July 12, 2010 I get “THE LETTER” stating I have 90 days to cure a violation of my purchase average. Not being at 80% of the National Average. If I do not cure within 90 days Matco has good cause to separate. If I repeat same violation within a year Matco can terminate my franchise.

  As soon as I get the letter I come home and start raising hell with Tim. I told him that it was pretty shitty that He would separate me from Matco after I had been begging for a resurvey of my route Anthony said he would perform. I also told him that I had not received one shop added to my route list since he ruined my business in 2006.

  I felt like I was getting nowhere so I started calling corporate and gathering route list to prove I had a low head count to corporate.

  Thats when I received a letter from Anthony stating he had performed a survey of my route and found I was only servicing 67% of my of 328 customers. A totally fraudulent survey. There were shops on the survey that had not been open for over 9 months, there were shops I never heard of, there were shops that he asked me to call on but never added them to my route list. There were shops with inflated numbers.

  Again, I RAISE HELL. I try to talk with Tom Willis and Ernie Lauber but I am not getting any returned phone calls with messages I leave.

  Then, on July 28, 2010 I get a call from Anthony. He has good news and wants to meet me the next day. We set up a meeting at McDonalds because when he lied to my wife and I over those two shops on Moberly Lane my wife told him to never set foot on our property again.

  At the meeting he hands me a route list to sign which says I will have 405 customers to call on. I am overjoyed! I felt someone at Matco had heard of the fraud and made it right. I ask Anthony “Why did it have to come to this for them to take care of me.” He told me “I have more freedom than I did in the past and I deserved this opportunity.

  So I go right to work. I take a purchase average of 620 per week off the false survey performed on July 26, 2010 and turn it into a 1,472 per week purchase average by the end of the year. I was above the 13 wk National Purchase average at the end of the year.

  Yes, I did take three weeks off at the end of the year. One Thanksgiving week and Two Christmas into New Years. I have two kids who were 10 and 11 who were at home as well. The weather would not be kind in the new year having over two weeks of snow days in which I would have to take care of my kids because my wife has worked full time every since Tim cut my route in 06.

  On February 11, 2011 I would receive a conference call from Tim Novak with Anthony Kramer in attendance where Tim informed me that I was no longer a Matco Distributor. When I asked why he told me I had gone back to doing what I did before. I asked specifically and he told me I was not at 80% of the National Average. I told him what about the four feet of snow in my driveway. He told me its too late. I asked if I could start another route somewhere else where their wasn’t a distributor. He told me “I don’t care what you do you won’t be doing it with Matco.” I asked him what about moving to Kansas and selling tools for Matco their? He said “I don’t care what you do you won’t be doing it with Matco.” I asked him if I could at least service my customers till Matco found a replacement. Again he said “I don’t care what you do you won’t be doing it with Matco.”

  What really blew me away was sometime in late November 2010, after my cure period Anthony shows up out of the blue on my truck. I ask him “Oh No! What did I do now?” Anthony proceeds to tell that I am “doing great”. I ask him what about the letter and he tells me “forget the letter ever existed” “your doing great” “just keep doing what you been doing.” I ask him specifically about the one year clause in the letter and he tells me if anything is going to happen he will contact me first. Just like he always did he lied again. Noone ever called and asked if I had a Death in the family. Noone asked if I was sick. Noone called to tell me what a terrible distributor I am.

  Matco didn’t do a damn thing to help me and lied to me every chance they got.

  Did I mention again that Anthony Kramer and Tim Novak hired Robert Demers a long time Snap-On distributor who won a Harley Davidson and a BMW Mini-Cooper for his sales excellence with Snap-On to come on board with Matco as a District Manager in San Antonio Texas less than 6 months after he filed bankruptcy in Arkansas.

  Did I mention Bob told me personally that he hated being a Manager for Snap-On for the year he did it and he told me he would never do that agin.

  Did I mention that Bob was made a Distributor a few months after I received my Separation letter from Matco?

  Guess where Bob assumed his route where two failed distributors had ran a franchise?

  Yes. Bob is back in his home town in Michael Johnson’s old route.

  Now! You smart intellegent people can probably find something to smart off about I am sure. But anyone who has a brain can figure out this is one SCREWED UP FRANCHISE

• Relentless- I will have to look and see who my RM was. I have forgotten his name. I do remember that he lived on east coast. Virgina maybe? He was over Glenn Vanderwall.

• “In addition, new Matco recruits were never told during the recruiting process that they would have non-sales duties that would include performing non-warranty repairs; collection of PSA monies for Matco; and repossession of PSA equipment where the customer failed to keep current.”
  – Former Matco Franchise Sales Manager Charles “Chuck” Bergen
  sworn statement

• According to former Matco Franchise Sales Manager Charles “Chuck” Bergen:

  “Finally, upper management would turn a “blind eye” to making of income representations by FSSs and DMs.

  “The usual manner in which this occurred through year 2007 was by telling a distributor prospect that “Matco does not permit us to make income representations, but why would you want to join Matco unless you can make more than you are presently earning”. The clear message sent was an income representation that the prospect will earn at least what he was earning in his present job and likely much more.””

  sworn statement http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/