MATCO TOOLS Franchise Complaints

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• Debbie,

  What if the customer owed money on box and he passed away suddenly? What happens?

• Well, then just call customer service

  Tell them you need to transfer out a contract because customer died

  I "think" you're off the hook.................

  Have you asked your DM?? Of course, I know "asking your DM" is usually pointless but, somebody in your district SHOULD HAVE HELPED YOU

  my sympathies for your customer

• Debbie,

  I am a snap on dealer. I ran across a situation and wanted to just find out how other tool companies like matco handles things.

• Snap-on Tools Dealer Association
  http://www.snapontoolsdealerassociation.com
  Thinking of buying or selling your Snap-on Tools franchise? Do you have suggestions on how to be a more profitable Snap-on Tools franchise? Complain about how your Snap-on Tools franchise is being treated by Snap-on. Join the Snap-on Tools Dealer Association to support, criticize, offer sug...

  jim lager, he CAN help

• matco, snap on, mac, cornwell

  it really doesn't matter

  they ALL scam..............

• raptorman wrote: "...I do not believe it is profitable for the company when anyone goes out of business. I mean think about it, If you go out of business the company does not get paid. They only get paid when someone succeeds...)."

  raptorman, I respectfully disagree when you say the franchisor only gets paid if the franchisee succeeds. This is simply not the case.

  Let's say a Joe Franchisee gets an SBA loan and leases a new Matco truck, pays Matco for software and other fees, and buys $80K initial inventory from Matco.

  Shortly thereafter, Joe Franchisee realizes his LOC and cash reserves can't sustain him. Despite his best effort, Joe Franchisee fails to make his required purchases, his franchise fails and defaults on the loan.

  Lots of people still made money on Joe's failure.

  - Matco keeps the $80K plus fees plus revenue from other tool sales, kickbacks on lease and/or whatever else they might get.

  - The DM and RMs keep their commissions. Up to $5K for the DM, I have heard.

  - The bank makes money because after it squeezes all it can from the franchisee, possibly repossessing houses, etc., the American taxpayers (via SBA) repay the rest of the loan.

  Who loses?

  - Joe Franchisee, who is financially and emotionally devastated and may have lost a marriage, home, credit rating, savings, retirement fund and reputation in the process.

  - American taxpayers who must pay Matco and the banks their risk-free profits.

  So then what happens to that route/List of Calls that could not sustain Joe Franchisee? Well, why not sell it to Jack Franchisee, who know nothing about Joe?!

  The DMs can get a fresh commission (and tell themselves Joe didn't follow the system so it's ok to sell the same doomed LOC to Jack).

  Matco can make another $80K initial tool sale, along with a potential taste of the leasing, credit, software fees and other revenue streams. Maybe they even have a nice insurance policy that pays upon failure.

  The banks or other credit sources can get a fresh deal.

  And when the last bit of cash and credit is wrung from Jack and his family, the cycle can keep repeating. When Joe and Jack show up on UnhappyFranchisee.com to try to warn others, The Old Boys Club will arrive to dismiss them for not working long enough hours, for blaming others, etc. But really, it's just the cycle that's been providing tool company profits for decades.

  raptorman, ask yourself: If it wasn't profitable for them, why wouldn't the tool companies stop churning and burning? The truth is, they win either way. Only the distributors lose.

• SCAMMED

  I believe the debt is forgiven if the customer is declared deceased unless there was a co-signer, or if it was a Gold Card contract the distributor is still liable (loses) for the total amount of the contract...Matco still wins with 3% holdback 22% compounded interest + 40% net profit on the tools/toolbox paid to Matco by distributor...

  WIN WIN WIN for Matco

• The "hold back" is up to 9 % !!!

  The interest rates are about 22% and the depreciation
  scale works much like a mortgage,
  So customer pays bulk of Intersest up front

• Guest - NAILED IT!!!

  4000 Plus comments and You nailed it!

  Thank you!

  Matco listen up, the Whole Deal wrapped up
  in ONE easy to read post!

  CLEAR. CONCISE. ACCURATE!

  Only thing left?

  WHAT? What are you going to do about it??

  We are waiting......

• Debbie,

  I got a good one for you. I sold a box to a customer that passed away recently. Family said he had no money and wanted too give the box back. Snap on then demandedni pickup the box. I was then demanded too buy box box at a fair market value. The fair market value did not cover what was owed on the box. Snap on then charged me 25% of the remaining balance. I later re sell the box at a few hundred dollars more then what I bought box back for. Snap on then calls me and said I sold the box for a little more then what I paid for box. I said yes. Snap on then takes my profit because If I sell box more then what i own it for they have the right too take the profit because the original note on box was never satisfied. Wtf.. That's what you must be thinking right now. So because my customer who was a good payer died... Not my fault but sad... And had no money left sitting around too pay for the box... I get stuck being liable for this box too the end....

  Attn people reading this,

  Let this situation I am in be a lesson too all the people that think we are crazy for being upset with these tool companies. My example of what is happening is PURE GREED.. I should not be liable for things like this nor is it fair.

  Joint the mobile tool dealers association and let your voice be heard. I am sick of my franchisor taking advantage of me and my voice will be heard loud and clear.