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



unhappyzee

View Comments

  • from what i have read i have a problem with what happen to todd. that bothers me. but most of what i read here is dbrs own doing. short weeks short days, thinking this is an easy job,it is not i work hard long hrs 5-6 days a week, mosy on here should just let it go and get a job,

  • then you have harbor freight girl who will not answer questions, did matco give you more area on your route,did you only work 4 days, hey i and many outhere would like to know the truth, and let matco be,and on the delete of comments on matco dist. ass why were comments deleted?

  • nobodyelse called me on my phone,that is my business phone and i did not want to be called by you or anyone else on here,..

  • matcoman wrote: "i and many outhere would like to know the truth, and let matco be,and on the delete of comments on matco dist. ass why were comments deleted?"

    matcoman wrote: "nobodyelse called me on my phone,that is my business phone and i did not want to be called by you or anyone else on here,.."

    Wtf are you even saying? Have you been drinking? Hit in the head with a toolbox? Or is English not your native language?

    Why don't you wait til you actually have something to say, then have someone with at least a 3rd grade education write it for you. Til then, why not leave the commenting to those with something to say and the education to say it?

  • Apparently a nerve has been struck

    However; that last comment was completely
    out of line and in extreme poor taste, I feel sorry the
    person commenting lacked maturity to engage in
    an informed and intelligent conversation, and needed
    to resort to childish attacks.

    I would like to direct the conversation back
    to the illegal and fraudulent practices that continue
    to exist and mislead potential distributors into
    believing a viable opportunity exists with Matco Tools.

    Remind everyone that Several law suits are pending
    and they allege SERIOUS violations by distributors
    Againsts Matco Tools.

  • How many-distributors have come forward saying
    the following is completely true and has happened
    to them?

    I started a Matco Tools business and have been unhappy ever since. I came across the below and find it to be completely true…………
    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.

  • Another victim of the fraud...pay particular attention to the timeline, who made money and who DID NOT!!

    Kevin McSparren on February 4th, 2012 3:55 pm
    I just shut down my business after 18 months and $85K, I was unable to pay myself a dime for personal living expenses. The business was paying for itself ie Matco, Trans Lease, Crane Agency were all being paid but I was working 10-14 hours per day for free. When I signed the original agreement we had yet to finalize my “List of Calls”, My DM said not to worry as we could make changes later. To the day I handed in my 30 day notice we had yet to agree to a “List of Calls”. I feel that although Matco does provide a decent product and excellent delivery their Distributors bear a larger portion of the burden than they should. It is apparent that their mentality is “sign em and churn em” In Dec I was ranked 516 in the nation but was not able to pay myself anything unless I didn’t pay my tool bill or something else. I expected at least an acknowledgment of so kind from Corporate after giving my notice to terminate our agreement and instead it was nothing. I had to ask my DM if they got my notice to ensure I was adhering to the agreement and he didn’t have a thing to say other then let me get some pictures of your truck to show to some new recruits they had on the hook.
    After all is said and done I agree their money is earned by signing up new distributors not retaining existing ones.

  • matco has to be held responsible for some accounting here and just destroying peoples lives and finances.
    some on here say it is the dbrs fault for not checking this and that.

    matco sends out supposedly honest people to assure you that there is nothing that you need to know to run this business. they get you on the hook and then they smoke your ass. you are done. its a sad thing that supposedly nice people can destroy others in return for their own advancement and financial gain.

    corporate and personal greed. tghats what is wrong with the economy today. all the good jobs are sent overseas so a few can make more money. technology, self checkouts and such reduce jobs , again just for the increased profit of a few.

    its a sad day when we have to destroy our own people just to prove how good we are ourselves.

    matco, i will be here till the end to help you get what is due to you. you smoked my ass and now it is my turn to smoke yours. oh what a feeling.

    all you nay sayers need to shut your mouths if you cant speak from personal experience of the misfortune that others here have had. you are just being a part of their little party which is coming to an end.

    there are some people that you shouldnt mess with. im one of them. its not the size of the dog in the fight that counts. its the size of the fight in the dog. with all of us together here it amounts to a pretty good size fight in this dog.

    MDAM by choice and proud of it.

  • And another victim comes forward...

    James Bunch on February 5th, 2012 2:48 pm
    Todd, How coincidental. I too was in your district and was done the same way. They put me in a route that was doomed to fail in a very short time. I had the Mtn Home route and after a major truck breakdown, slow economy, and major shops closing, I was (forced) out of the business after only 2 years. I loved what I did and most (95-98%) of my clients were happy even though I had to build it back up because of the last distributor. My major mistake was to truct Anthony as well. When things were looking bleak, I was abandonded by Anthony and was “black-flagged by other distributors. I couldn’t move toolboxes to other distributors that Matco wouldn’t take back for some odd reason. Now I have tools, toolboxes, and a huge balance with Matco, since they would only give 40% of inventory price for credit. Now all I get is when are you going to start paying more to get your bill paid.

Recent Posts

Building Kids Worldwide Franchise Owners May Establish a Franchisee Association

Recent developments have left franchisees worried and uncertain about their futures.  To advocate for greater…

2 weeks ago

Building Kidz Worldwide Franchise: Is It a Great Opportunity?

The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…

2 weeks ago

PAINT NAIL BAR Franchise Update

PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…

2 weeks ago

Is HOMEVESTORS a Great Franchise for Veterans? U.S. Veterans Magazine Says It Is.

U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…

1 month ago

Truth For Veterans: Letter to U.S. Veterans Magazine, Mona Lisa Faris

More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…

1 month ago

Franchise Reality Check Launches Brutally Honest Podcast

Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…

1 month ago