MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

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  WARN VETERANS

  https://twitter.com/#!/veteranssupport

• Post of Facebook

  https://www.facebook.com/VeteranOwnedBusiness?sk=wall&filter=1

• First , I would like to thank JAMES BUNCH an ARKANSAS Distributributor who served his Country for 11 1/2 years and IS a Disabled Veteran that I APPRECIAtE YOUR MANY YEARS OF service IN OUR military.

  I understand that with YOUR College education and Advanced Education that when you were FORCED to Separate from Matco because of lack of SUPPORT that they also took advantage of you by requiring you to perform LABOR while not being compensated, not giving you proper credit for RETURNED PRODUCT, NEVER given a viable 325 customer head count to start your route with and asked to service shops (NOT ON YOUR LIST OF CALLS) and were WAYYYYYY out of your area by CORPORATE through the EMAILS that MATCO in NO WAY is a “GREAT decision in a BAD economy let alone even a better decision in a good economy”.

  It seems Matco’s NEWEST way to AVOID customer complaints about not getting SERVICE in their shops is to blame it on Distributor’s whom it would be UNPROFITABLE do to the DISTANCE they would have to travel to service them.

  SOUND familiar Debbie???

• I also learned Today that TOM WILLIS, acting CHAIRMAN of Matco Tools, has SERVED his Country as well in the UNITED STATES ARMY and for the SPECIAL FORCES.

  If this is TRUE I understand why I NEVER received a personal response from the many efforts trying to contact Tom Willis (when he was STILL PRESIDENT of Matco Tools) regarding the FALSE TERMINATION, FRAUD and FALSE DOCUMENTS created by my REGIONAL and DISTRICT Manager in order to terminate my Franchise Agreement with Matco.

  OUR TROOPS who have served and are serving DESERVE BETTER than the FALSE HOPES and DREAMS Matco offers.

  Michael Gatewood, James Bunch and Myself DISAGREE with YOU MATCO!!!

  Matco is NOT a GREAT DECISION ANYTIME PERIOD…….

• WOW, sounds ALL too familiar Todd.

  I wanted to add, THANK YOU to all Veterans!!!! I have a special place in my heart, as I am sure MOST Americans do as well.

  Which is why I find it SO APPALLING Matco shamelessly recruits Veterans with LIES and false promises.

  Please spread the word – to EVERYONE – Matco is NOT a good opportunity for Veterans. Matco IS NOT a good opportunity for anyone!

  Post EVERYWHERE!

• You whiners stop complaining. Matco is one of the great franchises of our time as long as you follow the model. If you failed you have no one to blam but yourself.

• Ronnie Balkan= Delusional

  If you think Matco Tools is “one of the great franchises of our time” then have I got a deal for you…you could be the proud new owner of a FANTASTIC new route in the beautiful mountains of Colorado. But you better hurry this offer ends soon and is for a limited time only…

  A great franchise is an NFL MLB or NBA franchise…or even Mcdonalds, Burger King or one of the big Hotel chains or even a Honda/Toyota Franchise that have near zero failure rate…other than that there are no “Great Franchises” and Matco Tools is in a “race to the bottom” of the heap in the Franchising world…

• MATCO IS THE ONE FRANCHISE THAT HAS SCREWED AMERICAN TAXPAYERS OUT OF MILLIONS OF DOLLARS AS ALLEGED BY THE SBA LAWSUIT.

  MATCO IS NUMBER ONE AT SCREWING AMERICAN TAXPAYERS

• WOW, Matco, there is NO stopping Us now…………….

  the word is spreading like Wild Fire…………….

  Just how many people can you possibly Block????

  tonight:

  Dan Grimes
  Matco Tools mistreats and defrauds it’s distributors. Lawsuits,
  >Lies, Loss………..
  >……… stories can be found at
  >http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/

  right on!!!!!!!!!!!!!!!!!!

• I would like to post yet another Veteran who entered into the Matco Tools Franchise under the Vetfran Program. This Veteran RETIRED from the US Army with a Bronze Star for meritorious service during Desert Storm. This Veteran is also Disabled from injuries sustained while in service. He exited the Military with the Rank of an E-8 Non-Commissioned Officer.

  For over 3 1/2 years he served as a Matco Tool Distributor receiving $2500 in tools for signing as a Vetfran Franchise Distributor. He entered the Matco system with NO guidance as he had NO District Manager for the FIRST year in BUSINESS.

  When he told Matco that the route he was given was not VIABLE because it was spread over 700 miles and did not have the minimum of 325 customers to start a Franchise Matco stepped up and gave him A whole NEW route with less windshield time. But his GOOD fortune would come to an end when Matco would do NOTHING for the 200+ customers he would lose due to the reduction of customers at a Military installation on his “LOC”.

  Richard Brannies deserved MORE from Matco but what he got was “NO WORLD CLASS SUPPORT” and a kick to the CURB. THIS IS THE MATCO that exists in todays world.

  IF YOU LIKE BEING SHIT ON BY A FORTUNE 500 COMPANY! (What a JOKE!)

  Please don’t hesitate . SIGN UP TODAY!!!

• This from a charter distributor from matco;

  Matco Tools has become a giant “pump and dump” operation to get new franchisees (big upfront investment) in business knowing they will only last 1-3 years and when the franchisee finally figures out how bad he is getting screwed by the company he has lost everything…then to top it off Matco tools and their egregious business practices put the full blame on the dealer/franchisee. Matco and Snap On keep this viscious cycle going to artificially inflate numbers to keep them in the Top Ten list. The actual attrition rate is close to 70% during the first 5 years, the numbers here ONLY show SBA loans which is a very small percentage of the total loans and money invested.
  Stay away from the tool business no matter how good the managers make it look on paper, they get paid a huge spiff to hook unsuspecting prospects.
  How do I know all this as fact? I have been a dealer for 20 plus years and the business has changed dramatically since I bought my business…STAY AWAY FROM MATCO, YOU WILL LOSE ALL YOUR INVESTMENT

• TODAY ON CAREER BUILDER 1242 JOBS AVAILIBLE, WOW.

• Career Builder- Matco Jobs- equals FALSE ADVERTISING.

• I would like everyone to VISIT my Facebook page “Veterans Against Matco Franchises”. Read the ACOUNTS of REAL soldiers who DEFENDED their Country and what Matco did for their Businesses.

  Thank You,
  Todd A. Peterson
  (Previously a US Army soldier and Matco Tools Franchisee)

• FTC does NOTHING!!!

  Kind of makes you wonder about the relationship of the FTC and Danaher!!!

  How CORRUPT are BIG Corporations???

  Do they have the HELP of our Government Politicians in ripping off Blue Collar Workers who FALL for the Matco SCAM!!!

  Rich people FELL for Bernie Madoff false investment scams and when exposed for the THEIF he was he was punished.

  How come the FTC is still allowing MATCO to represent Franchises as an Employment Opportunity so they can reach the MAXIMUM amount of people looking for a job on popular EMPLOYMENT web sites like careerbuilder.com???

  Knowing that these employment web sites have peoople looking for EMPLOYMENT opportunities not FRANCHISE opportunities!!!!

  I understand that people who are DESPERATE to find a job make easy people to PREY on with your FALSE ADS and FALSE PRE-DEFINED “List of Calls.” but WHY does the FTC allow Matco to poison people who are looking for an EMPLOMENT OPPORTUNITY???

• Pingback: MATCO TOOLS: Veterans Against Matco Franchises Launches Facebook Page : Unhappy Franchisee

• New post on Todd’s Veterans Against Matco Franchises Facebook page. Comments encouraged.

  MATCO TOOLS: Veterans Against Matco Franchises Launches Facebook Page

• https://www.facebook.com/pages/The-Franchise-Truth/202608813110044

  POST on EVERY VETERAN site
  POST on EVERY FRANCHISE site

  Message EVERYONE – this message is IMPORTANT!!!!!!!

  https://www.facebook.com/pages/The-Franchise-Truth/202608813110044

  Matco Tools mistreats and defrauds it’s distributors. Lawsuits,
  >Lies, Loss………..
  >……… stories can be found at
  >http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/

• HEY MATCO

  Can you see the TSUNAMI building yet??

  Of course not!!

  Stay tuned…

• I found this:
  ———————————————
  Veterans Increase Franchised Small-Business Ownership

  For immediate release
  Contact:
  Alisa Harrison, 202-628-8000
  Matthew Haller, 202-662-0770
  aharrison@franchise.org
  mhaller@franchise.org
  http://www.twitter.com/franchising411

  WASHINGTON, Nov.10 – More than 2,000 veterans have taken a path to business ownership through the International Franchise Association’s Veterans Transition Franchise Initiative, known as VetFran. According to IFA’s recently completed VetFran survey, 2,089 veterans have become small-business franchisees since 2002 by taking advantage of financial incentives.

  “This Veterans Day, IFA is proud to join with all Americans by pausing to honor its military veterans”, said IFA Chairman Ken Walker, chairman and CEO of Driven Brands. “In this time of economic uncertainty, IFA encourages veterans seeking the American dream of starting their own small business to consider owning a franchise business and taking advantage of the financial incentives offered by participating member companies in the VetFran program.”

  IFA’s award-winning VetFran program not only links veterans with participating companies through its Web site http://www.franchise.org, but also offers comprehensive information designed to aid prospective small-business franchisees in investigating a franchise before purchasing. Typically, discounts off the initial franchise fee can lower up-front costs by thousands of dollars.

  VetFran was created by the late Don Dwyer Sr., founder of The Dwyer Group, to honor those who have honorably served our country. Dwyer understood that the skills learned through military service translated well into owning and running a franchise business. VetFran is a voluntary effort of IFA member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans.

  VetFran was re-established following the Sept. 11, 2001 terrorist attacks. Since then, nearly 400 IFA-member franchise systems have volunteered to offer financial incentives to help honorably-discharged veterans become franchise small-business owners. The participating companies and the discounts they offer can be viewed at http://www.franchise.org under “Franchises for Veterans.”

  VetFran receives no government funding but is officially endorsed by the U.S. Dept. of Veterans Affairs’ Center for Veterans Enterprise, which helps promote small-business ownership for veterans and named IFA a “Champion of Veterans Enterprise” in 2003. The award-winning program was also recently tapped by the American Society of Association Executives to receive its Award of Excellence for creating an “outstanding program which has resulted in a significant benefit to American society.”

  Earlier this year, IFA formed a partnership with the U.S. Army Reserve to help broaden employment opportunities for reservists by including franchise ownership as a career option and funneling veteran franchise prospects toward VetFran.

  Congress is also recognizing the benefits of franchise ownership for Veterans. The IFA-backed Help Veterans Own Franchises Act (H.R. 2672) would increase the level of business ownership by America’s military veterans. The bill was introduced last year by Reps. Leonard Boswell (D-Iowa) and Aaron Schock (R-Ill) and currently has 45 cosponsors. The legislation would provide a tax credit for franchise businesses that offer qualified veterans a discounted initial franchise fee. It also provides a tax credit to the veterans who choose to purchase a franchise and open a business in their local community. Sen. Bob Casey (D-PA) introduced a companion bill (S. 3818) in the Senate earlier this year.

  More veteran-owned franchises are soon to open. During the most recent survey of participating companies, IFA learned that more than 200 franchise agreements were in various stages of negotiation to acquire a franchise using the VetFran discounts.

  Top 10 Franchises Popular with Veterans
  (Survey results Nov. -10)

  Franchise VetFran Sales

  Matco Tools………………………………….……217

  The UPS Store……………………………………152

  Sports Clips………………………………….……126

  Dunkin’ Donuts. ……………………. …………….84

  CruiseOne ……………….…………………………70

  Meineke Car Care Centers…………………………65

  WIN Home Inspection………………………………50

  Aire Serv Heating & Air Conditioning, Inc.……………49

  Mr. Handyman………………………………………47

  Snap on Tools.…………………………………….45

  ###

  About the International Franchise Association:
  The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs. Through its awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the 21 million jobs and $2.3 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
  ————————————————
  franchise.org/Franchise-News-Detail.aspx?id=52221

• todd
  i just sent them a little letter that they need to check out some of this vetfran business

• WHOA!!!! WHAT THE %$#&!Franchisor Loses Rare Battle to Pull Franchise Litigation Out of Court and Push it into Arbitration

  Faraz Saleemi and Sob, LLC, Plaintiffs-Appellants, v. Gosh Enterprises, Inc., Defendant-Appellee, United States Court of Appeals, Ninth Circuit.

  Plaintiffs (franchisees) filed a state-court action against Defendant (franchisor), which Defendant removed to federal court, asserting a number of claims arising from their previous relationship. The district court dismissed the case without prejudice because the claims were subject to arbitration and because Washington was an improper venue under the Agreement’s forum-selection provision. The Franchisees, who apparently desired to litigate the case in Court rather than in an Arbitration, appealed to Court’s ruling, and the Appeals Court agreed with the franchisee, and vacated and remanded the case to the trial court.

  The Court stated that although there is a presumption that dispute resolution provisions survive termination of a contract, the presumption is rebuttable. Then, the Court applied that rule to the case. “Here, Defendant’s March 17, 2008 email said that the franchise agreement was ‘fully terminated’ and that ‘no contractual obligations exist anymore.’ At oral argument, counsel for Defendant asserted that this email extinguished all of Plaintiffs’ future contractual obligations, including those with express survival clauses, but not background obligations governing dispute resolution-the forum-selection and arbitration provisions. Plaintiffs contend that the email relieved them of all contractual obligations, including the forum-selection and arbitration provisions, thereby rebutting the presumption.” The Court then held that the record was insufficiently developed on this narrow fact question and therefore vacated and remanded for the district court to determine the import of the March 17 email.

• Good Richard!

  I sent this to BETH SOLOMON of Vetfran and I am awaiting a RESPONSE!!!

  My name is Todd Peterson and I am a Veteran who entered the Matco Franchise system in July of 2004. I was in the US Army for 3 years and a Franchise Distributor for 6 1/2 years.

  My experience with Matco is that Matco will do and say anything to get you to sign their contract and once you sign do everything to see you FAIL including NO SUPPORT, FRAUD, LIES and create FALSE DOCUMENTS in an effort to get you to QUIT or in my case FALSELY TERMINATE you from your CONTRACT.

  Michael Gatewood is a Veteran whom Matco used in their Ad Campaign in 2006 to get others to sign up and become Veteran Vetfran Franchisees of Matco. Michael does not believe Matco is a GOOD investment for ANYONE let alone VETERANS.

  James Bunch is a Veteran who entered his Matco Franchise through the Vetfran Program. James believes he was LIED to by his DM and not givin the SUPPORT he was promised and additionally was given an UNVIABLE route to start his business.

  Richard Brannies entered his Matco Franchise through the Vetfran Program. Richard is a RETIRED VETERAN (20+) of the US Army whom received a BRONZE STAR for his meritorious support during DESERT STORM. Richard was an E-8 in his 15th year. Richard too was given an UNVIABLE route and had no DM for SUPPORT in his first year. When he finally got a DM he explained that the route he was given didn’t have a minimum of 325 customers which he was promised in his contract and the drive time was killing him in FUEL EXPENSE. He was given a new route which was MORE profitable and had less windshield time. Then he had a Military installation go through cut-backs and lost 200+ customers at the blink of an eye. He requested help again only to be rejected and ignored. Richard believes that the Franchise Matco offers is a SCAM.

  Charles Roberts also entered his Matco Franchise through the Vetfran Program. Charles was a 4 year Veteran of US Army. Charles believes he was never given a VIABLE route to start his Franchise and thinks that Matco did not SUPPORT him when he was asking for HELP.

  I am reaching more Veterans who entered the Vetfran Program and started a Franchise only to be called FAILURES by Matco every day. When will somebody STEP UP and STOP this GIANT Corporation DANAHER who owns Matco Tools?

  Todd A. Peterson
  (479) 435-0573

• Please go to this link as well and tell your experiences in your own WORDS!

  http://forum.franchise.org/Forum8-1.aspx?Update=1

• Todd, I posted my complaint to the forum you just posted.

• Todd, we will talk more later, sorry for being quick on the phone, I am at work and will call you later.

• spank, spank, i hear that train a coming , its coming around that bend, looks like it is going to matco when it ends.. woooohooooo

  where oh where did all the obcs go
  where oh where can they be

  are they all sucking up to the boss
  getting ready for their big loss

  the paperwork trail will be plain and clear
  it will be something for you to fear

  all your lies and all your deceit
  will be proven with a receipt

  pack your bags and call a cab
  there will be no more money to grab

  thanks to jerry and all his kids
  you are all on the skids

  this is not going to end pretty for you matco, have a nice day.
  you better save a few for later

• tommy
  i didnt see you ifa post. did you put it globaly

• Richard, it was posted right under Todd’s, I am not sure if it went globally, I will do it again, thanks.

• So… We are set for EXPO!!!!

  I am interested to see what will be inside this year and what the BUZZ will be about!

• franchisee get 6 mo – with 85% back – although, NOBODY ever tells the poor suckers they can get out, wonder IF anybody can really “get out” with 85% back

  In fact, I was TOLD that if “it doesn’t work” – I’m really not out much because, Matco will take back my inventory minus 15% restocking

  NO mention I would have to PAY to send that inventory back
  NO mention that only SOME of that inventory would actually be eligible for return
  NO mention I would have to deal with the truck lease on my own
  NO mention I would be left buried in debt

  NOBODY GETS OUT – they are FORCED OUT, left bankrupt

• Speaking of “getting out”

  This poor kid just got IN………..Karl Utakis

  https://www.facebook.com/pages/Matco-Tools-Karl-Utakis-Authorized-Distributor/139401952843601

  Wonder if anyone explained to him the “options” if things don’t work??

  Hey Karl, write down Jerry’s phone number, because in about 28 MONTHS
  YOU WILL NEED IT……………….. I’m sorry

• debbie

  i agree with you and the reason for the 85 % rule is the 15% loss, but after 6 months they dont take back most items. so then what do you do.
  more lies,more bullshit

• http://www.mobiletooldealersassociation.com

  Jim Lager and I are in the process of joining forces to so that all tool companies can be linked. The combined expertise of distributors from Matco, Snap On, Mac, and Cornwell would be invaluable. Strength in numbers would allow us to effect change in ALL franchises.

  stay tuned for more details!

• It is all bullshit, and at every turn, more lies

  I hope NOBODY ever signs on again, ,,,,,,,,,,,

• Everyone knows in your start up inventory is Crap Matco can’t get rid of and stuff you can not send back. Why do people think Matco put FOOD in start up inventory? That hurt my business alot in the beginning. I still have a set of those spline drive sockets I got in my start up that I could not even get one of those specialty ratchets for to use the sochets.

• From Ladymatco.com

  Jim Lager- Snap-on said: 2/10/2012 3:15:51 PM (GMT)

  Understand all succesfull dealers of all brands. You do not own a business. You have a job that you work 12 hours a day 6 days a week and you take all the risk. Average tool dealer makes $40,000 – $65,000.00 a year. If you own your own business you should be able to sell it for a profit above and beyond assets. Has anyone done that? I am in the top 10 Multi franchises in the world for Snap-on tools and when I tried to sell my route to one of my dealers Who averages well over $10,000.00 per week in sales, snap-on said it has no value beyound inventory at cost and maiximum accounts recievable of $52,500.00. If any dealer thinks they are a business owner they are sadly mistaken.

• Matco proclaims “own your OWN business”
  “be your OWN boss”
  “Matco stands Beside you not behind you”

  Don’t be fooled, Matco owns your business! They tell you where to go * when to you*
  Matco totally controls EVERY aspect of your business.

  IF IT WERE YOUR OWN BUSINESS – YOU WOULD HAVE SOME CONTROL
  The only thing you OWN with a Matco franchise is DEBT!!!!!!!!!!!

  You are NOT your own boss, don’t be fooled
  Matco TRACKS your every move, they insist you connect and report your daily activity to Matco, so they know when you make your first sale and every item you sell

  Matco does NOT stand ‘beside” you – they stand behind you so that they are perched and ready to kick your butt out

• from Ladymatco.com

  Jim Lager said: 2/10/2012 3:10:02 PM (GMT)

  Multi-franchise dealer for Snap-on tools. Tired of the tool companies taking advantage of us little guys. Not willing to take all the risk for a weekly paycheck and then give my business back to Snap-on for profit anymore. I am amazed that tool dealers of all brands are willing to work 12 hours a day and let these companies take the routes back for nothing. this is why I am converting my Snap-on site to http://www.mobiletooldealersassociation.com. this will transform into a site that represents all dealers.

• How many distributors work 12 hour days????????
  …………. I know I did!

  How many distributors struggle to pay their tool bill?????
  ………………….I know I did!

  How many distributors felt frustration when calling Matco and asking for help?
  …………………I always did!

  How many distributors struggled because their business could not sustain itself? How many distributors fell further and further into debt each week?
  How many distributors did not make “a good living”??

  Were not all these things promised to us? Of course they were! We were promised YOU WILL HAVE TIME FOR YOUR FAMILY, MAKE YOUR OWN HOURS!

  Riddle me this…… If you are working 12 hours a day – when do you have time for your family?

  World Class Support – POOF GONE if you didn’t order 80% NPA
  pay your bill or we won’t send you any tools

  Riddle me this……….. How do you PAY your tool bill if you don’t have tools to sell?
  …………catch 22? you bet

• One last thought this morning…………..

  Good morning Matco, I KNOW you’re listening, and reading!

  I’m also aware we can ADD to your list of “Things Matco Controls”
  * free speech – CONTROLLED
  * But make NO mistake, while you may have told the OBC they can’t post
  THEY ARE STILL READING,,,,,,, they can’t help themselves :)

  The word is getting out, READ YOUR OWN FACEBOOK PAGE!!!!

  Yes, you CONTROLLED me, Tommy, Richard, Todd, oh the list goes on…….
  …………..you haven’t stopped the DAILY comments about Unhappy Franchise

  Guess what? YOUR CUSTOMERS KNOW WHAT YOUR DOING
  Guess what? YOUR CUSTOMERS DON’T LIKE IT!!

  GUESS WHAT? Your CHURN and BURN will happen faster BUT WILL THE CUSTOMERS EVER COME BACK?

  Customers have multiple choices in the mobile tool industry, go ahead, keep
  GIVING THEM A REASON TO BUY FROM THE COMPETITION

  at this rate……………….. Matco won’t be around in 5 years

• In an excerpt from http://www.bluemaumau.org/10520/franchisees_win_massachusetts_hearing

  That is good news for franchise owner-operators. With little money to lobby, but a lot of heart, a loud voice and a lot of organization, franchisees at the state level have managed to do the seemingly impossible. After they, through Dunkin’ Donuts Independent Franchise Owner’s Association and the Coalition of Franchisee Associations, helped introduce and support Rhode Island’s enacted fair franchising law three years ago, franchisees seem to be poised for a double win, taking another nick out of lopsided contracts and predatory franchising in the state of Massachusetts.

  Most likely the International Franchise Association, whose paying members are largely franchisors, will throw money at and redouble their efforts in Massachusetts. But those efforts look unlikely to accomplish much. “The emperor has no clothes,” concluded franchisee advocate Jim Coen about the famed lobbying power of the IFA and its franchisor members.

• Matco heed the warning…………….

  You should NOT have underestimated me or the power and influence the
  Matco Tools Distributor’s Association and Ultimately the Mobile Tool Dealers Associations has

  As the VOICE of the small business owner
  Matco can you hear me now

• Todd, have you heard from VetFran, Beth Solomon??

  Anxious to hear!!

• http://www.aafd.org/blog/whats-wrong-with-franchising-in-2012/

  Unfortunately there are hundreds of franchise systems that continue to pose a significant risk to investors—in part because the business model may either be flawed or subject to a fickle marketplace, and in part because the franchise agreement affords the franchisee few rights to protect the franchisee’s interests with things go wrong.

  MATCO POSES A SIGNIFICANT RISK TO INVESTORS!
  Matco is the fast track to bankruptcy, divorce, and failed dreams.

• Please read and comment on this new post:

  SNAP-ON TOOLS Why SBA Won’t Guarantee Snap-On Franchise Loans

  The SBA has determined that Snap-on exerts “too much control over franchisees” (specifically by maintaining a List of Calls) to be eligible for an SBA guarantee on its franchisee’s loans. Basically, the SBA is saying that Snap-on franchisees aren’t really independent business owners, just affiliates of Snap-on corporate.

  However, Matco Tools and Cornwell Tools also control franchisees via a List of Calls, yet both are still on the SBA registry. Both also have very high SBA loan default rates, 37% for Matco, 42% for Cornwell.

  Shouldn’t the SBA be excluding Matco and Cornwell also?

  PS Thanks to the unnamed reader who contributed the SBA rejection letter.

• MATCO

  you were not expecting to be stung via the backdoor thru Snap On did ya!!

  more to come…stay tuned

• Damage Control ———— it is almost funny to watch Matco DANCE

  Sadly, there are SO MANY OF US…………. they won’t be able to keep up

  The internet is abuzz :)

  Can’t delete them all Matco

  Can’t un ring the bell…………………… the word is OUT!

• OH SNAPPY, this is not good news for Matco…thanks admin

  You have requested an opinion as to the eligibility of a proposed Snap-On franchise for SBA Assistance.
  The controlling provision of the Code of Federal Regulations (CFR) for assistance to franchisees/licensee is found at 13 CFR § 121.103(g), which states:
  The restraints imposed on a franchisee or licensee by its franchise or license agreement relating to standardized quality, advertising, accounting format and other similar provisions generally will not be considered, in determining whether the franchisor or licensor is affiliated with the franchisee or licensee provided the franchisee or licensee has the right to profit from its efforts and bears the risk of loss commensurate with ownership. Affiliation may arise, however, through other means, such as common ownership, common management or excessive restrictions on the sale of the franchise interest.
  The following provisions of the franchise agreement restrict the right to profit commensurate with ownership. Those include:
  The franchisee does not receive an exclusive territory. Instead, the franchisee receives the right to purchase products from Snap-on for resale, only at the locations identified on the List of Calls.
  The franchisee cannot sell products at any location not identified on the List of Calls, even if the location is adjacent to, or near, stops on the List of Calls, or to any customer who moves to a location not identified on the List of Calls. If the franchisee wants to sell products at any location not on the List of Calls, the franchisee must request that the additional location be added to the List of Calls. Snap-on, in its sole discretion, will determine whether to add these additional locations to the List of Calls.
  Snap-on reserves the right to “adjust” the List of Calls and the number and/or location of stops on the List of Calls if it determines in its sole discretion that these changes are necessary.
  To “assist in managing cash flow,” Snap-on requires a franchisee to deposit with Snap-on a certain amount of money called the “Revolving Account Deposit.” A minimum of $25,000 is required, up to a maximum of $40,000. This provides for franchisee financing of all revolving account sales.
  Therefore it is my conclusion that, the franchisee does not have the right to profit commensurate with ownership and is therefore not eligible for SBA financial assistance As a result of the CFR conflict, the Franchisor appears to exercise too much control over the Franchisee such that the Franchisor and Franchisee may be considered affiliates and therefore ineligible for SBA financial assistance.
  Carmelo E. Burgos, Attorney

• you cant undo or cover up the paper trail. thats like deleting some post and leaving others. it shows up a little one sided.
  i hate some of the collateral damage that will happen but that too is matcos responsibility.
  all this just to satisfy the greed of a few.
  i hear that train a coming, its coming around that bend. we aint seen no help since i dont know when.