MATCO TOOLS Franchise Complaints

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• ABSOLUTELY!!!!

  Main reasons! MDBS and how they use it to control Franchisees! Pre-selecting who you will do your business with and how they control head count to benefit their purposes! Your inventory consists of what Matco wants to you to start with. (Control)
  Management trains you to do business their way. DM meetings. MDAC is made up of Distributors but controlled by Matco Management.

• HELL YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  They want to control your every move and know what you sold and when. They watch everything that goes on in your day to day operations. They have all franchisees upload everyday except for the charters , who they do not have control over.

  They can tell you the minute you sold something to who,how much,what time and whether you had the tool in stock or did you purchase outside, which many distributors do and is a violation.

  They also can tell what time you hit your first stop and when you ended your day at the last stop.The computer also tells your negatives, which means you didn't have, broke stock or picked up elsewhere. They can tell how much money you brought in that day and where it came from.

  THEY HAVE TOTAL CONTROL AND THEY SHOULDN'T.

• jd the article is old and was passed by Obama in Feb. 2012.

• jd,

  The Brighter Side Of Tax Day

  April 2009 Franchising World

  There is money out there begging to be claimed.

  By Stan Friedman, CFE

  While recent and ongoing economic concerns have forced some franchisors and franchisees into a state of financial panic, there can be a brighter side to tax day. Each year as tax time approaches, scrambling to collect funds to pay those taxes is top of mind for all business owners. What Uncle Sam doesn’t tell them about wage-based tax credits costs them tens of thousands of dollars each year.

  One trap that many business owners fall into is the belief their accountant is securing any and all tax credits available. Not true. The administrative burden required to claim these credits belongs to the business owner. You wouldn’t ask your accountant to do your payroll, mail out your W2s, or collect and organize your receipts and expenses for the year, would you? No. Rather, at tax time, you sit down with your accountant with your total payroll amounts and expense receipts organized and focus on the goal at hand-filing. Business owners who question whether or not their accountants are generating tax credits on their behalf can find the answer by simply checking their tax return for IRS forms 8844, 5884 or 8861. If those forms are not included in your tax returns, you are not benefitting from these credits.

  Many business people don’t even realize that there are tax credits both for the current year, as well as years “retro,” collecting dust and going uncollected. You could have thousands in savings and reimbursements awaiting you. C-corps take the credits on a corporate level, but there are benefits to the principal owners of Scorps, LLCs, partnerships and others, as these credits pass through as dollar-for-dollar credits against their personal tax liabilities. This is important because it’s usually nothing more than lack of knowledge that prevents many business owners from redeeming what could rightfully be theirs.

  Why should franchisors/franchisees care?
  In the tax credit arena, knowledge is power. Simply knowing that these tax credits exist is the most significant bit of information that business owners need. Franchisors can become heroes, by simply passing this knowledge and opportunity along to their franchisees.

  In the current economic environment, any responsible franchisor should do whatever possible to help franchisees enhance their bottom lines and thus, their opportunity for success. Sharing this knowledge costs nothing and can make all the difference in the world to their franchisees.

  As for franchisees, operating as financially sound as possible is not a luxury in today’s economic environment, it’s a necessity. The amount of money that these credits could potentially represent to even a single-unit operator might equate to a lot of product sold or service provided, no matter which franchise concept he or she is affiliated with.

  Yes, both franchisors and franchisees can reap the benefits of tax credits. Whether for the corporate headquarters, company-owned locations, or franchised affiliates nationwide, anyone employing people can benefit from these credits.

  What tax credits are available?
  Franchisors, along with multi-unit franchisees and single-unit operators alike, have many opportunities to forever change their tax procedures by implementing one, if not more, of the many programs available. From the Federal Empowerment Zone Wage Tax Credit Program, to Renewal Community Initiative, and the Work Opportunity Tax Credits, the options are many.

  Often, when approached about the possibility of having thousands of dollars sitting unclaimed, business owners balk at the suggestion, thinking that this just sounds “too good to be true.” It does sound too good to be true, but in this case, it is.

  It is safe to say that 10 percent-15 percent of the W2s that run through one’s payroll in a given year could be worth, an average, $1,500 per person (depending on the tax credit program) per year. Take a typical two store, fast-food franchisee; 40 people on the payroll; and a 200 percent turnover of personnel. In this example, the business owner would then be managing an average of 80 W2s and chances are that eight to 12 of those employees past or present, could produce tax credits, averaging $45,000 ($1,500 Credit X 10 W2s X 3 Years = $45,000).

  While this is real money to most people, you can actually kick it up another notch if you’re a multi-unit franchisee.

  Imagine the potential when you apply this formula to that many more eligible employees and the financial impact very quickly becomes staggering.

  “We were aware of employee tax credits, but didn’t have the manpower to administrate the process,” says Jerry Greenfield, CFO of a Dallas-based 40-unit Pizza Hut franchise. “With the help of our tax credit administrator, ACI/RetroTax, we have been able to use Federal Empowerment Zone, Work Opportunity, and Welfare-to-Work credits to our advantage.”

  The Federal Empowerment Zone Wage Tax Credit Program is an incentive program created to revitalize the economies of select communities across the country. These zones are located in many of America’s biggest cities. Specifically, the FEZ program provides employers with a federal income tax credit of up to $3,000 per qualifying employee per year.

  While the FEZ credits don’t line up for everyone, there are other programs available. Another credit opportunity is the Renewal Community Initiative, which mirrors the FEZ credit in terms of rules and retroactivity. The significant difference between them is that the RC credit provides a federal income tax credit equal to $1,500 per qualified employee, per year, but the qualifying geographic areas are usually much larger. Other than that, the proposition is basically the same.

  The Work Opportunity Tax Credit program is a program that provides businesses with a federal income tax credit that can be as high as $9,000 per eligible employee. Unlike the FEZ or RC program, this program has no geographic restrictions or boundaries. Also unlike the FEZ or RC program, it only allows a one-time credit for new hires, on a go-forward basis. There is no opportunity for retroactivity with WOTC. These credits are available if your new hires fall into any one of nine different categories, including qualified veterans, exoffenders and anyone from a family receiving Supplemental Security Income or other government assistance.

  Identifying and administering these tax credits is no simple process. It is actually somewhat akin to a treasure hunt, when legally and properly secured federal and state credits are identified and secured. The process takes time and the procedures are onerous, which is why so few undertake this task without the help and assistance of professionals.

  When to begin capitalizing on credit opportunities and programs
  Right away. All tax credit programs have deadlines. Retroactive tax credit programs allow you to capture credits in the open tax year, as well as from the three prior years. As soon as you close the books on 2008, you can no longer claim credits from 2005. New-hire tax credit programs require that paperwork is submitted to the proper agencies within weeks of the new hire’s start date. Each day you contemplate whether or not this is right for your business, is another day (and most likely) a tax credit lost.

  The best advice for franchisors and franchisees is to contact a tax-credit specialization company as these credits cannot be administered without one, at least not without headaches and legality concerns. Fortunately, most work on contingent fee basis so you are not paying for services that don’t financially benefit your business.

  Once a connection is made with a taxcredit specialization company, the data collection process begins immediately. It usually takes about two weeks for turnaround of a final package.

  There is money out there begging to be claimed. If you are a franchisor, tell your franchisees about these opportunities that can help them get through these tough economic times. If you are a franchisee or supplier, don’t delay, as every day that passes could be another credit left unclaimed.

• jd,

  Veteran Tax Credits Add Up for Franchising

  The Vow to Hire Heroes Act signed into law at the White House in November with the help of VetFran leaders Greg Tanner of Aaron’s, David Nilssen of Guidant Financial, and IFA President & CEO Steve Caldeira, is spurring franchisors, franchisees and suppliers to develop new hiring strategies for 2012 to do the right thing for the nation as well as strengthen the franchise industry.

  The tax credits, ranging from $2,400 – $9,600 per veteran hired, depending on whether the service member has a disability and how long he/she has been unemployed, are another reason to act. It’s important to plan now to be able to maximize the benefit of this major tax incentive.

  According to the latest news from IFA 2012 Convention Exhibitor Lisa Rosser of The Value of a Veteran, there are other things you need to know:

  The credits expire at the end of 2012. Employers may take the credit for any qualified veterans hired between November 22, 2011 and December 31, 2012.
  There is no time limit associated to when the veteran left the service. Previous versions of veteran-related tax credits stipulated that the veteran had to have been separated/retired from the service within the last 5 years in order to qualify. This is not a stipulation for this latest version, so if you are considering hiring a veteran who left the service 10+ years ago and who has been unemployed more than 4 weeks, you can receive a tax credit for the hire.
  Qualified tax exempt (i.e., 501(c)) organizations may now claim the credit by hiring veterans.
  There is no limit to the number of qualified veterans you can hire and claim the credit.
  The IRS allows a company to carry the credit back 1 year or forward 20 years — this could be particularly attractive for small businesses.

  Meet Lisa Rosser and veterans at the IFA Convention in Orlando at the first-ever VetFran Pavilion to find out more about how companies are recruiting veterans, and visit The Value of a Veteran, which offers free “Ask the Military Recruiting Expert” sessions Jan. 10 and Jan. 23. Click here to sign up for a free consultation.

  Register for the IFA Convention Orlando Feb. 11-14.

  Posted by Beth Solomon, IFA Vice President of Strategic Initiatives & Industry Relations

• jd,

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  Veteran Franchise Bill to Offer Tax Breaks for Discounted Franchise Fees
  A bill that was recently introduced to the United States House of Representatives and the Senate is advancing a tax credit that would encourage and reward franchisors for implementing discounts to veterans interested in purchasing a franchise. Presently franchisors participating in VetFran's programs offer discounted fees to veterans.

  The bill known as the "Help Veterans Own Franchises Act" has gained the support of over 45 co-sponsors. One incentive associated with the proposed bill relates to tax credits offered to franchisors that, in certain instances, will amount to fifty (50%) percent of the discounted franchise fee. There are caps on the amount of the credit but the bill also offers a potential tax credit to the franchise veteran.

  The International Franchise Association ("IFA") says they are backing the bill and have testified twice in the past year for the passing of the bill according to Alisa Harrison, vice president of communications and marketing for the IFA. Harrison also added that "This bill is not about helping veterans find employment. It is about helping them take the skills they gained in the military and applying them in their own business".

  The bill currently continues to sit in the House Ways and Means Committee pending information on the impact of its tax credits from the committee members from the administrator of the Small Business Administration and the Secretary of Veteran Affairs.

  Tax credits designed to assist and encourage entrepreneurship among veterans represent a well deserved benefit and obligation owed to our veterans. Nevertheless irrespective of discounts and credits the purchase of a franchise requires research and a thorough examination of the franchisor and the overall franchise system. The following articles should provide a good starting point.

  Labels: "Franchise tax breaks" "Veteran franchise bill" "VetFran"

• jd,

  Support Builds for Veterans Franchise Tax Credit Bill

  Following IFA’s recent 10th Annual Public Affairs Conference, which brought more than 450 franchise industry executives to Capitol Hill to lobby Congress, support is building for IFA-endorsed legislation that would establish a tax credit for getting veterans into franchised businesses.

  The Help Veterans Own Franchises Act, H.R. 2672, was introduced June 3 by U.S. Reps. Leonard Boswell (D-Iowa) and Aaron Schock (R-Ill.) and would create a tax credit for franchise businesses that choose to offer qualified veterans a discounted initial franchise fee. The tax credit would amount to 50 percent of the total franchise fee discount offered by the franchisor to the franchisee and would be capped at $25,000 per unit. It also provides a tax credit to the veteran who chooses to purchase a franchise and open a business in their local community.

  The bill is now co-sponsored by 14 bipartisan members of the House, thanks to the efforts of attendees of this year’s Public Affairs Conference. IFA also received positive feedback from several senators and hopes to have a version of the bill introduced in that chamber in the future.

  To reiterate his commitment to veterans and franchising, and motivate IFA members to urge other members of Congress to support the bill, Rep. Schock joined members of IFA’s elite Franchise Congress initiative on an Oct. 8 conference call. Schock urged franchise advocates to use the upcoming Veterans Day holiday to promote the benefits the bill will have in helping American military men and women transition from protecting the nation to reviving its economy.

  More information on how members of the franchising community can help build support for this legislation, additional background information on the bill and sample letters that can be sent to members of Congress, can be found in the Government Relations section of IFA’s Web site.

• Todd, can you please provide the article where it shows that the 'Help Veterans Own Franchises' bill passed.

  What I'm seeing is that it hasn't passed. But I could be wrong, so I'm asking for your help.

  I understand that the Vow to Hire has passed, but that is for people hired.

  Thanks

• Look jd,

  I am sick of your crap dude! I post all these articles as proof that Franchisors are PROFITING through tax credits and you just argue with everything. Vetfran and the IFA are using Franchising to make their own dollars. The fact that Franchisers have infiltrated our government system and created a BOGUS program like VETFRAN disgusts me.

  It disgusts me as a TAX PAYER, It disgusts me as a VETERAN of the US ARMY and it disgusts me as a Franchise owner of 6 1/2 years in which the first two years I poured my blood sweat and tears to create a SUCCESSFUL FRANCHISE only to have a NEW MANAGER destroy my business and then allow my new DM to sit back and watch me FAIL and lie to me when I asked for support.

  Does Matco profit from putting Veterans into Franchises? You damn right they do!

  Does the government give them tax credits up to $9600? It damn sure looks like it with what the IFA says! They are advertising for Franchises! NOT EMPLOYEES for MATCO!

• I am surprised SBA did business with matco. Sounds like matco controls a lot of your business as well.

  Todd,
  Thanks for your service to our country.