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
Matco tools named #1 tool franchise 5 out of last 6 years.
Money will buy anything.
In 2010, Matco terminated 231 distributors in that year alone as according to the 2010 fdd.
Based on 1300(estimated) active distributors currently (that are getting screwed), thats about 1 in every 6 that are terminated.
Just remember to run like hell when they bring the doc’s for you to become a distributor.DON’T DO IT.
Charles “Chuck” Bergen was the 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”
“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:
1. 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.”
2. 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.”
In the words of one of my customers – The EXACT words he used to reply to Ernie Lauber (who was waving the Matco#1 flag because a magazine rated them)
My customer’s opinion, and many other people’s view of the magazine:
Sorry to inform you, magazines don’t do any company justice, its the technicians your company attempts to serve that decides if you’re worth dealing with. In my experience I have seen more Matco dealers come and go than any other distributers.
Also, your reply appears to be scripted. I see no way that you are trying to resovle the situation.
Tommy you are doing a fantastic job…. Keep up the work, did Jerry tone you sown a little or does he like you making fun at people?
You must have a very understanding boss to let you spend so much time during the day.
I missed you today, I was bored as you can see
Debbie, resolve the issue…really is that what you are doing?
I don’t think so, scripted no, truth yes. If I have complaints with Matco I talk to people that matter, not my customer… How is talking bad about Matco to my customers going to resolve any issues….it’s NOT!
It will resolve the issue of not having to order tools because they will stop buying but then I would fall below 80% .
I call it how I see it it, if you think thats making fun of people, you are screwed in the head.
No one has told me to tone it down, because I won’t listen, I am here to voice my opinion.
Lets talk about how many people have been screwed by matco, and how this train is going into stow.
MANY MORE COMPLAINTS ARE COMING, I AM CALLING EVERYONE, LETTING THEM KNOW ABOUT THIS SITE.
Debbie,
I will let you in on a secret, all franchises want all of their territories full, so repeating the paragraph about filling routes that someone failed in, is nothing new
I had several routes that people failed in and others continue to do very well. When people fail, it’s alwAys the system, not there self.
I just had a quiznos fail by my house and then a new owner open up, boy, churning u should warn him he is going to fail because the previous guy did….what a joke!
It is amazing how matco can sign this guy up in Arkansas, send him to school, give him a list of calls (inflated),he buys a truck,insurance,credit card machine, and computer, runs his route, only to find another distributor, running the route.
HOW DO YOU EXPLAIN THAT? I SPOKE TO THIS GUY TODAY,AMAZING. THIS IS TODD’S FRIEND, CAN YOU SAY STUPID ON MATCO’S PART.
IGNORE,IGNORE,IGNORE, THATS WHAT MATCO DID ON THIS ROUTE, IGNORED THE FACT THEY HAD A GUY ON THIS ROUTE, THIS GUY TOLD ME, MATCO WAS TRYING TO GET RID OF THIS OTHER GUY.
Well when you said Sam u was having family problems where you just drunk and you didn’t remember saying that?
Yeah I call bs on that one Tommy, no way they would have sent a guy to class without a route available.
Quiznos – another sad franchise story
The Associated Press – 2 days ago
DENVER (AP) — Quiznos says a majority of its creditors have agreed to a plan by the restaurant chain to restructure or pay off some $875 million in debt, …
147 related articles
Quiznos Reaches Deals With Lenders; May Seek Bankruptcy If Fails …
– NASDAQ
“The business model that exists within the current system is, quite simply, unsustainable, and we have set our sights and energies as an association to concentrate on that basic principle,” he said.
Read more: http://nrn.com/article/quiznos-franchisees-looking-ownership-deal-closure#ixzz1hgfT5YsY
A BUSINESS MODEL THAT IS SIMPLE UNSUSTAINABLE……..
……. SOUNDS FAMILIAR!!!!!
When people try to slam me , I am going to slam back, I don’t run or hide, that moron made a derogeratory mark toward me,because he is friends with lemonlime.
THIS SITE IS ABOUT PROBLEMS WE HAVE HAD WITH MATCO, NOT ABOUT SLAMMING EACH OTHER, GIVE YOUR OPINIONS ON MATCO AND KEEP THE PERSONAL THOUGHTS TO YOURSELF.
IF YOU DON’T HAVE A PROBLEM WITH MATCO, THATS GREAT, GO TO THE OTHER SITE, BECAUSE WE ARE HERE TO BRING MATCO TO ITS KNEE’S AND WE WILL.
We are here to keep any potential individual from signing on with matco, they lie,they are deceitful, and they mislead.
POST EVERYWHERE, ANYWHERE, AND BE LOUD.
Tommy if you didn’t over exaggerate on everything people might actually believe you. Like the times you said you were top 200 why would lie about something so easily to prove you wrong
Call Todd Peterson, I spoke to his buddy today, matco paid him off,because of their screw up. I have this guys phone number, thats right, matco’s perfect.
I have my 2 dollar medallion and call darryl pritchett, my d.m. I also got a 5 dollar
gold ring,worthless. Call matco , they will give you pritchetts number or is that a lie.
Tommy that ring is worth 300 on today’s market. Well by the sounds of things Matco made it right with the guy so what’s his complaint? Based on what you snd Debbie say nobody can make it in this business they did him a favor then right?
Don’t call people names….wow Tommy here are a couple from your last post
Moron, lemonline, nice Tommy.
I seriously doubt you are even remotely capable of bringing Matco to it’s knees, and why are you so mad we are on here…. Is it because you want to lie without opposition?
I was a distrubitor for Matco from November of 2008 to July 2010.
Just want you to know that the twelve reason a Distrubutor Failes are so True.
I lived everyone.
But they took my Distrubutorship back when I sold my truck and was trying to get a trailer.
Later I heard that they resold it to another distrubutor that they would not keep him out of my customer base.
I am glad I am out. I lost about $40,000 with Matco.
So let’s see quiznos is a bad idea, snap on, Mac, Cornwell , Matco, all tube and lube, Aamco, subway, Midas , etc… Are all bad ideas, well I guess we can all aspire to be breakers at walmart.
Bergen gives a sworn statement ……………….
3. 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.”
4. 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)
Excerpt from Fraud! How to Protect Yourself from Schemes, Scams, and Swindles
The classic franchise system is a company that for a fee offers individuals assistance in starting their own businesses. The franchisee has authority to use the company’s trade name. Franchisees are also given location assistance, standard operating procedures, training, advertising, and a supplier of inventory. There’s no standard method of franchising. The person who is buying (franchisee) is dependent on the representations and promises the seller (franchisor) offers. The key for the con artist is to promise whatever will get investors to part with their money.
The most common hook in franchise fraud is earnings misrepresentation. In the early 1990s, Tower Cleaning Systems, a commercial cleaning franchisor, promised potential franchisees that they’d achieve revenues as high as ten thousand dollars per month. The company, however, provided no documentation to back up that. The FTC filed a permanent injunction against it.
The second most common hook is training claims. In the early 1990s, a franchise company told investors they could operate travel agencies in their own homes. The company promised support from thousands of suppliers of travel services, including airlines. Investors would be licensed or certified as travel agents by some “official authority” and would receive free computers and free or deeply discounted travel opportunities. Investors were promised $250,000 in annual sales and were told that previous investors had a 100% success rate. When these investors tried to start their agencies, they got none of what was promised.
When checking out a franchise offer, the con artist may give you the names of current franchisees so you can ask about earnings claims, training, and other promises. The FTC has seen innumerable cases where the references are paid shills.
i have been a dbr for a short time, but i happened to go with my dm when he was seeding some of my route. right or wrong he never once asked a tech if he could afford a new tool box or anything else. he went to the service manager to find out howmany techs were in the shop.So what Chuck bergen said about techs on route cannot afford psa,how would you know,its up to dbr,, that is why they get you 350 potential custumers,its up to dbr to make them your custumers.also my dm gave me a route that was 5 days long not 4 days as i have heard some dbrs have.
when i went on my ride along i was given all the dbrs in my district with phone numbers and was told pick any that you would like to ride with an call yourself. no one pushed me or suggested any to ride with, thayt is just bs.
Red Flags……….
— Litigation history.
— Turnover rate
— Earnings mis- representations
If you’re a victim of franchise fraud –
Complain to the FTC. It can get injunctions that stop companies from their illegal conduct. Report problems to your state regulators and attorney general, or hire an attorney and file a lawsuit.
i was never told or implied to on how much i would earn.this is by far the best co. i have ever worked with or for. people need to pull the head out and get to work and quit complainingto your custumers .there not going to buy from someone who is not going to be there for them. GET TO WORK.nothing is a given.
So Debbie let me get this straight, you like to brag about the number of posts, but most of your posts are repeats of your earlier posts or someone elses posts….then you complain about inflated numbers, I think you are guilty of doing the same thing you accuse Matco of doing.
Matcoman you are right. My guys still tell me stories about the previous Matco guy, how he would pull up, wait 5 minutes for people to come out, if they didn’t he left. Or about how bad Matco was screwing him, or how bad the economy was…too bad for him I am doing 7 times what he was doing and I only got half his route. They say he complained so much, or smoked so much they didn’t want to cone out on his truck.
Distributors don’t realize that most people want to shop in a clean store. Would you buy groceries from your store where the guy blew smoke all over?
Debbie, the quiznos article had nothing to do with franchise owners and everything to do with an investor that wants 70% ownership in the company….another mid representation by you, this is why we don’t go away!
Matco1 that’s how Debbie and tommy got here lie wine and bitch and then when you get called on it blame someone else.
I’ve been thinking what if there was a counter law suit filed? Can anyone say slander. Another layer with some tickets to Colorado and Florida now that would be good.
i work hard everyday, Im out at my 1st stop between 730 and 8am every morning.i work mon through fri and about once ot twice a month on sat i go looking for skips, no bad but i was told by and old matco dealer that was his biggest mistake, not keeping up with skips, ive been in bus, for 2 years and have 2500. and am working to get it down.but i would never only work 4 days a week and take off fri (thats most dbrs best day)i need the money.
More Than 100 Franchise Executives to Achieve Certification
WASHINGTON, D.C. (Feb. 11)—More than 100 franchise executives received the Certified Franchise Executive
designation today during the International Franchise Association’s 48th annual convention. Currently, more than 600
candidates are enrolled in the program. Since its inception in the early 1980s, more than 400 franchise executives have
received the CFE designation.
IFA is the world’s largest organization representing the franchising industry. Its members are franchisees, franchisors and
suppliers whose business operations span 80 different industries and more than 100 countries.
The program is conducted by the Institute of Certified Franchise Executives, a subsidiary of the IFA Educational
Foundation. The curriculum, which is specific to franchising, provides individuals with the opportunity to expand
knowledge, gain industry recognition and experience peer-level networking. Once an individual completes the prescribed
course of study and meets other requirements, he or she is eligible to hold the CFE designation.
New Jersey Charles Bergen Matco Tools Westampton
Way to go Ta Ta Tommy boy, someone disagrees with your propaganda and you go and make up lies about them and there family!! Hummm see a pattern here?? The supporters here have made a name for themselves and establish a great business and a living. Notice a trend?? How many people have stood behind Ta Ta Ta Tommy boys slander?? Answer…. NOBODY!!
Matcoman great job on skips, kick my but there, I work 5 days too and yes thurs and Friday best two days, why would you not work on payday?
Which makes you Tommy boy a class A looser!!! What can you make up about me now??
You nailed it guest17, Tommy says don’t call names, then the next sentence he does. Then Debbie says don’t post over the weekend and immediately starts posting. I am not sure if they are delusional or drunk?
well i read the post up top,that debbie does not work fri,i just do not see how a dbr could survive not working 5 days a week. (question answered) enough said.
Yeah matcoman, let’s say her p/a is at 75%, working w 4 days a week… If she was to work 5 days a week she would be at least 90 purchase avg then Matco would be off her back, or if she went to sales meetings and bought tools that would help too
Ive missed 3 meetings in 2 yrs and not once has anyone(dm) pressured me to buy anything. but if i see a new tool or a great price i get it and put it in my TOTE bag. i sold 8 pro1000s 5 for cash….. sell do your job quit complaining.its your business.i love mine and {I LOVE MY TRUCK ,ITS RIGHT OUTSIDE]]]
The horoscopes?….you are the man!!!!I didn’t eve stock one, pre-judged I guess. Well know what I am going to order. I can’t keep my truck at my house, not matco’s fault darn hoa. But it’s close if I need something, yep I love my truck too 2010 Peterbilt.
boroscopes (sp)
I took 10 mt1769’s at the last meeting, have sold 41ytd, along with ( 12) ir2135timax.
No Matco #1 you had it right, he was whoreing those things out!
lol
I was only able to sell 5. Great tool though, play with it a little and Demo demo demo!
whatever it takes to get them off MY TRUCK<ITS RIGHT OUTSIDE (like the song)
Damn I bet that peterbilt is nice, 26 footer?
i keep 1 on MY TRUCK >ITS RIGHT OUTSIDE all the time i love that thing it is so muchbetter then snap ons i compare it to there every chance i get,