MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• Organized, nice loaded question there. Since I don’t know all of the tax credits that may have been out there since they started franchising, then the answer would be no. If you are talking about the tax credit that Todd and Debbie were talking about then I would say yes, I would be comfortable saying that they aren’t using that credit unless they put that franchisee on their payroll.

  As for the article that Todd just posted, then I would say that they (as well as other franchisors) would be able to take advantage of that credit. But to be able to do that, the bill is going to have to pass Congress first.

• Sign up on Forbes and post everyone, let them know about all the tool businessess and how they do business.

  Heres how to get hold of FORBES CEO;
  Eric Stites, CEO
  http://www.FranchiseBusinessReview.com
  603.433.2266

• CORRECTION FOR ABOVE, NOT FORBES,BUT FRANCHISEBUSINESS REVIEW

• jd “And again, I don’t care that they aren’t mentioned in the
  Forbes article.  I don’t care that they are talked about poorly
  on this website.”

  Hmm, man proclaims apathy however; definitely feels
  the need to make others care about his opinion…

  The response Forbes submitted to Unhappy was
  in my opinion “their SPIN”

  Much like Matco’s Number One Distributor ranking!
  A SPIN on a ranking, and admitted a number one
  OF TWO ranking

  Spin, Smoke, Advertising…. None real, meaningful,
  credible….

  Matco’s qualification to own a franchise: High School diploma

  Real World requirement to sort through the real
  deal – college degree with attorney review

• Franchise Business Review is not legitimate. Franchisors with image problems pay them for their phony awards so they can sell more crappy franchises and scam more people.

  Despite all the failures and lawsuits, Eric Stites came on the Forbes site to praise Snap-on. Why? Could it be that Snap-on wites FBN a nice fat check each year?

• Franchise attorney Michael Webster wrote:

  Is Snap-On Tools the next Coverall?
  http://www.franchise-info.ca/franchisee_association_news/2012/03/is-snap-on-tools-the-next-coverall.html

  Coverall is a janitorial franchise. A MA judge ruled Coverall maintains such control over the franchisees’ businesses that their franchisees are actually, technically, employees and should be protected by labor laws as such, including being paid min. wage, overtime, unemployment, etc.

  What do you think? Is Matco vulnerable to the same charge?

• 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.

• Thanks You Scammed,

  jd,

  What are they and how can you get them?

  October 23, 2008

  by Blake Christian, CPA/MBT

  Franchisors and franchisees of any size, operating in virtually any state, will generally be surprised to find that they are overlooking significant federal and state tax breaks that can generate annual tax savings in the tens of thousands for small businesses and millions of dollars for larger chains. There are over 8,500 federal and state tax incentive zones throughout the U.S., resulting in more than 20 percent of businesses having one or more stores or facilities falling into a state or federal zone.

  Since these tax benefits are generally only available in certain portions of a state, city or county, information about the program specifics is not readily understood by the companies or their financial advisors. Therefore, it is not surprising that over 90 percent of businesses that are eligible for these tax breaks claim little or none of the tax credits.

  These tax breaks come in the form of hiring credits, equipment credits, sales tax credits or exemptions, property tax reductions, Tax Holidays, etc. Collectively, these tax incentive programs are referred to as Location Based Incentive Credits (LBIC).

  More specifically, there are 42 states with Enterprise Zone (EZ) programs, which offer some or all of the aforementioned tax breaks. In addition, there are thousands of federally designated zones that allow for hiring credits, and other tax incentives.

  Businesses that take advantage of these LBIC programs are more competitive, since they typically have lower cost of labor, lower capital equipment costs, lower tax rates, better cash flow and higher business valuations.

  Franchisors can create significant value for their business, as well as their franchisees’ businesses by assisting in identifying company-owned and franchised stores and facilities that fall within these LBICs. LBIC programs have their roots in 1980′s England, when government leaders designed economic development programs containing tax incentives for operating in economically depressed towns/regions. The common denominator under these LBICs is to “incentivize” employers to locate or expand their operations in business districts that are surrounded by residential areas whose households are living at or near the poverty level. By having the private sector hire these residents, who are often receiving government assistance before receiving job offers, legislators anticipate that the private sector employers will ultimately hire and train these new employees with the long-range goal of keeping them off the government rolls.

  U.S. federal and state government agencies picked up on this concept and began designing similar programs throughout the U.S. The most significant benefit available under the majority of each of these LBIC programs involves a hiring credit for hiring local residents or other economically challenged employees. The hiring credits vary by tax program, but the ranges of annual credits per “qualified” employee are summarized below:

  Annual Hiring Credits

  State EZ Programs

  $500 to $13,000
  per employee

  Federal Empowerment
  Zone Programs

  $3,000 per employee

  Federal Renewal
  Community Programs

  $1,500 per employee

  Federal Rural Renewal County (WOTC) Program

  $2,400 per employee

  Federal Indian Tribal Lands

  $4,000 per employee

  In addition to the aforementioned federal and state income tax savings, there are a variety of existing and possibly enhanced, tax incentives available to business owners.

  Property Tax Relief

  In addition to potential property tax exemptions or rate reductions for operating in certain jurisdictions or being in a designated industry, 43 states also have some form of “tax increment financing” (TIF) program, which generally allow taxpayers to either obtain subsidized funding for a project in a Redevelopment Area (RDA), or receive a lower tax base in return for revitalizing an economically depressed area. To obtain these benefits, a taxpayer must generally negotiate with the RDA prior to beginning the construction or rehab phase. State and/or federal rehabilitation credits and low-income housing credits may also be available on such projects.

  Sales/Use Tax Exemptions

  State sales/use tax statutes are sprinkled with exemptions and credits for certain state jurisdictions or targeted/specialized industries.

  Certain cities and counties are also open to negotiate sales “Tax Holidays” for new businesses, whereby the city or other jurisdiction will either exempt taxable sales or rebate all or a portion of sales tax collected from
  the taxpayer.

  Other Benefits

  It is fairly common for the federal, state and local agencies to also offer other resources to companies operating in these economically challenged areas. Free business counseling, employee training/screening, low-interest loans or outright grants are often offered in these regions — although some research may be required on the part of the company.

  States and cities are also highly competitive in their efforts to attract corporate headquarters to their city or state. Many states and cities will negotiate with and offer a variety of customized incentive packages to businesses that will bring in larger groups of employees, building projects or other economic development to a region. These negotiated incentive packages can involve multiple years and millions of dollars for
  larger companies.

  Conclusion

  Companies that take the extra time to evaluate the available LBIC benefits available for their various facilities will often gain immediate tax savings and significant refunds for prior years under many programs.

  The permanent tax savings and cost reductions available under these programs can offer long-term competitive advantages in a challenging marketplace. A thorough review of your current company or client facilities and available program benefits can yield positive results. And if you have no facilities in a state or federal incentive zone, when you are considering a move or expansion, you have 8,500 jurisdictions across the country that can generate tax breaks.
  ————————————————————————————————————-
  It seems to me in 2008 something changed with Matco. Tim Gilmore says Matco is a GREAT decision in a BAD economy. Maybe that is because the above article which kind of explains how much Matco stands to get CHURNING DISTRIBUTORS. Maybe Tim Gilmore’s video would be more accurate saying “We reap great profit off of CHURNING distributors in a bad economy and we hope we never see another GOOD one.”

• jd,

  Why am I putting up such a fight about our government supporting Franchisors?

  Because I am living PROOF that Franchisors like Matco don’t give a DAMN about anything other than MONEY!!! They use FRAUD, LIES and FALSE DOCUMENTS to get what the hell they want.

  It looks like our Government has bought into it HOOK, LINE and SINKER!!!

  If I thought for 5 seconds that a Franchisor would bring forth the idea about an organization (VETFRAN) that would help Servicemen and Women own Franchises out of the GOODNESS of their heart without the idea of the getting GOOD prospects for their OWN Dwyer Group Franchise Opportunities?

  I am saying the people who created Vetfran don’t give a rats ass about people serving our Country or the SOLDIERS who defend it other than GOOD people who have GOOD credit that they can prey on with their BULLSHIT CONTRACTS that look after one thing and one thing only CORPORATE GREED!!!!!!!!!!!!!!!

• I guess you don’t have an article that shows the ‘Help Veterans Own Franchises’, so you’ll go back to posting articles that don’t make your case.

  Again, the $9,600 credit is based on payroll paid to the disabled veteran, not to a franchisee that was recruited. Read the IRS article, and then re-read the IFA article. A franchisor or franchisee can benefit from that credit. For some reason you can’t comprehend that.

  The other article is something available to any business. The article lets them know what is available out there. You are trying to find something that isn’t there.

• Madoff or Matco it doesn’t matter they both have screwed people out of money. The only difference is people who Matco screws never had the money to begin with and Matco has avoided JAIL TIME, SO FAR!!! They went into debt not knowing that Matco had no intention of giving them a VIABLE opportunity or a chance to compete with other FRANCHISEES who had SEPARATE agreements. Matco lets them FAIL and then BLAMES THE FRANCHISEE!!!

  Well, I DIDN’T FAIL!!!

  I SUCCEEDED!!!

  I GOT SCREWED!!!

  I HAD NO CHOICE BUT TO CONTINUE!!! All the time KNOWING I would NOT BE SUCCESSFUL AGAIN!!!!!!!

• check out this article. matco isnt even on the top 20 list.

  New post on FRANCHISE CHATTER

  Forbes Magazine’s Top 20 Franchises for the Buck: The Controversy
  by
  Putting out a list of top franchises is a tricky undertaking. I should know — I’ve been on the receiving end of some pointed criticism for a few of the choices I’ve made in the past. But that just comes with the territory, and I welcome the debate from all sides.

  In my experience, for as long as the ranking methodology makes sense and the list is not intended as a mere marketing tool, people tend to respect a publication that takes a stand and expresses a definite point of view.

  I appreciate rankings that are based on quantitative measures. But it’s so important for the criteria to be sound, because the results are only as reliable as the choice of inputs. As they say, garbage in, garbage out.

  In this particular case, Forbes magazine, with the help of Robert Bond, chief executive of the World Franchising Network (a franchise database) and publisher of Bond’s Franchise Guide, took a sample of 110 of the most established franchise names and ranked them according to five variables:

  average initial investment (franchise fees plus equipment costs)
  total locations (the more the better)
  closure rate (the number of closings in the last three reported fiscal years divided by the total number of existing locations)
  growth in the number of U.S. outlets in the last three years
  and the number of training hours as a percentage of startup costs (the more support from the home office, the better)
  Overall footprint and survival rates carried the most weight.

  This list obviously favors well-known franchises with large footprints. Whether these opportunities offer the best bang for your buck is questionable.

  But the real root of the controversy is Forbes’ emphasis on franchise closure rates. Based on its FDD, Snap-on Tools was considered to have had zero franchise closures in the past 3 years, and this propelled it to the very top of the rankings. Critics of Snap-on (and other mobile tool franchises) on the other hand, claim that, while it may be true that there were no franchise closures during that period, more than 1000 franchises were reacquired (for a small amount) by the franchisor only to be re-sold to new franchisees — a negative practice called “churning”.

  In response to the criticism, J.J. Colao, the writer of the original Forbes article, posted a follow-up piece where he explains his ranking methodology in greater detail. He says, “Because of the ambiguous nature of reacquisitions, we did not include this figure in our tally of closures over a three-year period. In general, this worked well. For mobile tool dealers like Snap-on, this turned out to be a significant advantage. Without fixed locations to shut down, Snap-on generally takes back struggling franchises for a small cash payment or the forgiveness of debt. Very few are ever terminated.”

  With refreshing humility, he goes on to say, “If the goal was to express the health of a system, then stating that the Snap-on franchisees experienced zero closures from 2008 to 2011 is misleading. Clearly, franchisees failed but were not accounted for under conventional methods. For the future, a better metric may indicate churn, whereby we take all transfer events, including reacquisitions, into account.”

  So, there you have it.

  Here is Forbes Magazine’s Top 20 Franchises for the Buck. What do you all think?

  1. Snap-On Tools

  2. 7-Eleven

  3. Aaron’s

  4. Panera

  5. Servpro

  6. McDonald’s

  7. Liberty Tax Service

  8. Merry Maids

  9. The Maids International

  10. Jimmy John’s

  11. Papa Murphy’s

  12. Jack in the Box

  13. Dunkin’ Donuts

  14. Burger King

  15. Supercuts

  16. Edible Arrangements

  17. Great Clips

  18. Anytime Fitness

  19. Pronto Insurance (Ambrosio’s note: Why was Pronto Insurance included in the sample, which supposedly consists of 110 of the most well established franchises?)

  20. Massage Envy

  | March 8, 2012 at 12:15 am | Categories: Uncategorized | URL: http://wp.me/p1uLnQ-3EY
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• FranchiseChatter.com is particularly smarmy.

  If you comment there, be sure to link back here. They will do everything possible to avoid acknowledging UnhappyFranchisee.com or valid but negative issues.

  In Chatter’s Forbes Snap-on story, they wrote about the controversy WE raised yet they didn’t mention us or link to our post. They linked to the Forbes positive story 3X, praised the writer for his “humility” and reprinted the flawed rankings as if they were valid.

  Yes, Snap-on Tools is now the #1 franchise. Sorry Matco.

  This is a classic example of the orchestrated illusion and deception in the media’s portrayal of franchising and bad franchises. Here a major business magazine is shown that it has given a bogus award, it admits it is bogus, the award is allowed to stand and the franchisor is free to use it to sell more bad franchises, and blogs and websites reprint and circulate news of the bogus award, despite knowing the truth.

  Welcome to franchising, folks.

• I just posted this argument to Franchise Chatter!
  ————————————————————————————————————-
  Todd A. Peterson March 8, 2012 at 6:38 am

  Your comment is awaiting moderation.

  Dear franchise chatter,

  What is amazing to me is that Entrepreneur Magazine depicts Matco Tools as #1 in their Franchise Ranking! Forbes depicts Snap-On #1 in its Franchise Rankings! So who is telling the truth???

  Why would a FRANCHISOR that has Churn in the HUNDREDS per year be considered a SUCCESSFUL FRANCHISE?

  So, lets say Vetfran and Franchisors who have targeted our troops as their next VICTIMS get 1000 new recruits for their FRANCHISES. Companies like Matco and Snap-On who have a high FAILURE rate and are ACCUSED of CHURNING DISTRIBUTORS with their FAILING routes have a 30% failure rate. Matco I believe would be higher because their SBA Loan failure rate is 36%.

  Does Franchise Chatter, Vetfran, the IFA, our Government, Matco or Snap-On bother to tell our troops that their Franchise Opportunity is ALMOST a 50/50 chance of “JUST STAYING IN BUSINESS”???

  Remember that we are just seeing FAILURE RATES! Not how many Franchisees who are SO heavily invested that they HAVE to stay in business and try to pay their DEBT off and KEEP their CREDIT in good standing not making a profit!

  When I told Matco Customer Service in 2005 that my wife was quitting her job to stay home and take care of our two kids because I was doing so well with my Matco Franchise they told me that that might not be a good idea. I wondered why at the time but as soon as Matco RAPED my route STEALING my customers after the NEW REGIONAL MANAGER fired the only person who could substantiate that I had NOT violated my CONTRACT (my District Manager) and picked up shops that were not on my “LIST OF CALLS” a violation which is punishable by a revocation of MY CONTRACT with Matco, I realized SOME people within Matco Customer Service DO CARE about how Matco TREATS THEIR DISTRIBUTORS!!!

  It was a simple WARNING of what was to come. NO SUPPORT! LIES! FRAUD! CREATING FALSE DOCUMENTS!
  ————————————————————————————————————–
  Will someone PLEASE INTERVIEW ME!!! and take this story GLOBAL! I can prove that what I am saying and have stated on UNHAPPY Franchisee is true!!! It will take a little work but all the FACTS are here and can be easily deciphered and made viewable by someone who has experience with a computer. All that needs to be done is to take my financials and compare them to the the ACTIONS that Matco FORCED upon my Franchise and the results are STAGGERING!!!

  Even when Matco finally did what I thought should have been done, and what was promised would be done, after the Separation Letter was written and sent I created a SUCCESSFUL Franchise in less than 5 months just as I had done when I started. The only difference was I was STILL inventory poor and truck poor. You see, a guy with a 26′ truck and $175,000 in cost of inventory needs more customers than the <160 I had when I got my Separation Letter from Matco.

  Isn't it ironic that according to Matco I had somewhere around 350 customers still left after they raped my route for the 2nd time in July of 2006 (which is not true I had below the min. 325 viable customers to call on) and somehow on July 26, 2010 according to my District Manager who claims in a FALSE SURVEY that I had 328 customers to call on and I am only servicing 67% of them that with the tough economy, closure of shops, reduction in work force and lack of support from Matco that only lost 22 customers in 3 years?

  Yeah!!! that is right! Matco wants to call me a failure! Not purchasing 80% of the National Average in tools but the truth is "I KNEW at the beginning of 2009 that I was going under. The closures of shops and the reduction of the work force alone was taking a toll on my business. That is why I asked my DM Anthony Kramer to RESURVEY my route.

  Why would I have to ask my DM to resurvey my route?
  Because I don't OWN it! Matco OWNS it!

  According to Matco I violated my Contractual Agreement by going out and getting more CUSTOMERS, that were not EVER on another DISTRIBUTORS route, but according to the DM Robert Tolbert I had Matco's approval to go to those shops!

  So why would Matco fire a SUCCESSFUL DM (Robert Tolbert who had created a #1 District) and then attack TWO successful DISTRIBUTORS with NEW REGIONAL MANAGEMENT?

  That is the MILLION dollar QUESTION!!!

  I hope like HELL Jerry Marks finds the answer to that one!

  I am waiting! The WORLD is waiting! I am not even remotely thinking about giving up my cause after Matco takes care of my FALSE TERMINATION, FRAUD of MY FRANCHISE and the DOCUMENTS THAT MY DM (ANTHONY KRAMER) created to get CORPORATE to TERMINATE me!!!!!

  LIES, FRAUD and MISLEADING a FRANCHISEE is not the way that our TROOPS should spend their life having to endure after they make a FINANCIAL COMMITMENT of the MAGNITUDE it takes to become a MATCO FRANCHISEE!!!!

• Does anyone know who owns careerbuilder.com?

  What if I told you it was owned by companies which report the NEWS?

  What if I told you that the very companies which own careerbuilder.com and advertise Franchisors as Employment Opportunities also promote Franchisors in their NEWS MEDIAS?

  Look at who owns careerbuilder.com and then look at the news medias who promoted the article about Matco and Vetfran on Nov. 11, 2011. You know the Adam Blair story! A Marine who was not even a Franchise Distributor when the article was written. That’s right! He was a DM when the article was written!

  Talk about FALSE ADVERTISING!!!

  Let’s see how long Mr. Blair lasts in the Corporate world as an Employee for Matco?

  You better treat him right Matco! You got a multi-million dollar FALSE Franchise Opportunity riding on it!

  You can’t have too many more Michael Gatewoods out there telling the TRUTH about Matco Franchising and renouncing the Ads that you run where you depict you have had SUCCESSFUL Veterans enter into your FALSE FRANCHISE OPPORTUNITY!!!!!

• Here is the Adam Blair story!
  ————————————————————————————————————-
  Matco Tools Top Ten Franchise Choice for Veterans
  By: Matco Tools via PR Newswire
  Posted on November 11, 2011 at 10:00 AM EST
  Veterans Look to Matco Franchises For Post Military Success

  STOW, Ohio, Nov. 11, 2011 /PRNewswire/ — According to the U.S. Department of Veterans Affairs, there are 22.7 million living U.S. Veterans, and their ranks grow by 200,000 each year. Matco Tools is proud to be part of a prestigious business group that helps to transition veterans to successful franchise ownership after military service.

  As one of the top 10 most popular franchises for military veterans according to the most recent VetFran survey, the International Franchise Association’s Veterans Transition Franchise Initiative, Matco Tools has been committed to ongoing support of those who have served our country.

  “As Veteran’s Day approaches, we are reminded of the sacrifices made by our military personnel,” said Ernie Lauber, senior vice president of sales. “We want to extend our thanks with $5,000 of incentives when veterans join our franchise family.”

  To date, Matco boasts 230 veteran franchisees like Adam Blair, former sergeant in the United States Marine Corps, and a Matco Tools franchise owner since 2008. Blair, a recipient of the Purple Heart and Navy Achievement Medal with Combat Distinguishing Device, leveraged the discipline learned during his four years in the military to drive successful business practices in his Matco Franchise.

  “The self-discipline and motivation I learned in the military was a key to my success as a Matco distributor,” said Blair. “It’s a rewarding experience to start your own business, run it day to day and see it grow and thrive. Matco was the right choice for me as a business owner and now as a field sales representative for Matco, I help others achieve their dreams of success.”

  Other world-class benefits available to Matco Tools Franchisees include:

  No franchise fees, on-going royalties, or advertising fees
  No real estate investment or employees
  Flexible financing options
  National advertising
  National motorsports sponsorship
  More than 200 new and exclusive product introductions annually
  Outstanding customer and technical support

  For more information on franchise opportunities, call 1-888-MYMATCO or visit matcotools.com.

  About Matco Tools:

  Matco Tools manufactures, distributes and services premium quality automotive equipment, tools, and tool storage for the professional technician. The company has more than 60 years of national brand experience in the automotive equipment industry and a vast product line of more than 13,000 of the highest quality, innovative tools and accessories. The company’s franchise offering has no franchise, royalty, or advertising fees. Initial corporate and ongoing local training create and build outstanding value for the franchisee’s business. For more information on Matco Tools products or franchise opportunities, visit http://www.matcotools.com.

  Jessica Gardner
  Direct: 330.926.5355
  Cell: 216.702.1806
  Jessica.gardner@matcotools.com
  ————————————————————————————————————–
  Note that he states he WAS a Distributor! He is now an EMPLOYEE!

  Why does Matco have to use an Employee to PROMOTE their Franchises?
  Why didn’t they use 1 of the 230 they BOAST of having as DISTRIBUTORS for their Franchises?

  How many of the 230 that entered through the Vetfran Program are still Franchise Distributors?

  I know of 5 that are not?

  One of them is Michael Gatewood who claims that Matco is a SCAM!!!

  When will Matco have to answer some of these QUESTIONS???

• By the way unhappyfranchisee, it is getting increasingly hard to find this story on the internet even though it is only less than 5 months old!

  I wonder why?

  How many news media’s released this story of lies and deceit?

  My goodness there are a bunch of news media’s who posted the same story on through their sister stations!

  How does a company who has the #1 Franchise SBA FAILURE RATE receive such good PRESS?

  Where do they get their lovely NEWS Media’s to spread their LIES?

  Is it money?

  Is it a conspiracy?

  Is it a roll in the HAY?

  STAY TUNED!!!

• Here is the Michael Gatewood story!

  Keep in mind Mr. Gatewood has not even been in business for a year at this time!
  ——————————————————————————————————————
  Franchise Program Helps Veterans Go Into Business

  NORTH FORT MYERS (Saturday, November 11, 2006) – After working on cars for 35 years, Michael Gatewood got tired of turning wrenches and decided to start selling them instead.

  Gatewood, an Army veteran, purchased a Matco Tools distributor franchise last April with the help of a program called the Veterans Transition Franchise Initiative.

  Known as VetFran for short, the program awards franchise discounts from 227 companies to honorably discharged veterans.

  As a tool distributor, Gatewood, of North Fort Myers, travels around in a truck — his tool shop on wheels. The inside of the 17-foot-long cab is filled with $105,000 worth of tools, which Gatewood sells to businesses throughout Punta Gorda, Arcadia and Port Charlotte.

  Gatewood, 50, climbs the three large steps inside dozens of times a day as he stops at auto body shops, car dealerships, salvage yards and motorcycle shops. Once inside, he flicks a switch and lights illuminate waist-high toolboxes and shelves covered with tools in cases and plastic casing.

  Customers come in, chat and check out his inventory. Shiny new tools dangle from every available inch of space and are even attached to the pegboard ceiling by elastic bands.

  Gatewood tries to keep as many items as possible in sight, because people often forget what they need until they see it, he said. He also works hard to stay organized, because the quicker he can locate an item, the happier his customer, he said.

  Friday, the distributor began his 24-stop Punta Gorda run at 7:30 a.m. At each stop he went inside to talk with the owners and employees. He has been doing the run for about six months, so by now the owners and employees know “Matco Mike.”

  At the Marlow Werner Pontiac-Buick-GMC dealership, five guys climbed onto the truck to browse tools before Gatewood even set foot inside the shop.

  Auto technicians have to buy all their own tools, said Josh Murray, an auto tech who has worked at the dealership for about seven months. That morning, Murray bought a three-piece needle-nosed pliers set.

  “Mike’s the only tool distributor who actually comes every week, so he’s the one everybody buys things off of,” Murray said.

  Gatewood’s truck is also neater and better-organized than most, Murray added.

  Throughout the day, customers approached Gatewood with specific needs. Each time, Gatewood searched his inventory, catalogs and a few times, called other Southwest Florida distributors when he didn’t have an item in stock.

  Other participating franchises in the VetFran program include Dunkin Donuts, Baskin Robbins, UPS, Midas and Fantastic Sam’s; the discount for veterans depends on the company.

  “The idea is to honor veterans for their military service,” said Terry Hill, VetFran staff liaison for the International Franchise Association, which partners with the U.S. Department of Veteran’s Affairs, the Small Business Administration and the Veterans Corporation on the program.

  As of September, 612 veterans had purchased franchises with the help of the program, and 227 companies offered veteran discounts.

  Ohio-based Matco Tools has participated in the program for about a year and half, according to Richard Dayton, national franchise sales manager.

  “We recognize the value of the maturity that veterans have when they come out of the service,” Dayton said. “They have been through a lot of training and they are very focused and disciplined.”

  That discipline helps veterans successfully follow the Matco Tools franchise system, procedures and principles, Dayton said.

  Gatewood started working on cars at 15 years old. After returning from overseas service in Korea and Germany, he worked for a power company as an auto tech and then ran his own auto body shop for 13 years.

  Gatewood found out about VetFran when he decided to close his shop and applied to be a Matco distributor. The company gave him $3,500 toward his first tool purchase.

  “I got tired of turning wrenches,” Gatewood said. “So now I’m a one-man band. It’s a great job because I like people and I like being around the shops.”
  ————————————————————————————————————-
  Notice that this was “Memorial Day” November 11, 2006.

  Michael Gatewood has not been in business for a year.

  Now find Mr. Gatewoods phone number in the UFOC above dated Mar. 30, 2010 and ask him yourself as I have of how he feels about Matco Tools and the Vetfran Program who led him astray!

  I BEG and CHALLENGE any NEWS MEDIA to get to the bottom of why Matco will not reveal proof of Veterans who enter the Vetfran Program, which was designed to BENEFIT (supposedly benefit) our troops, and have any form of sustained success.

  Prove Matco is not an opportunity of LIES, FRAUD and FALSE DOCUMENTS to CHURN DISTRIBUTORS and VETERANS leaving them broke or paying off BAD DEBT for years to come!

  I will mention that Matco LOVES veterans because if they fail with an SBA loan Matco will receive 80% reimbursement BY AMERICAN TAX PAYERS who front the investment.

  That is right! Matco still profits off an inventory and reserve account because they have a “BUILT IN” commission on their inventory. You may pay $80,000 for it but it costs Matco a whole lot less! Remember! If you write contracts that is money Matco is profiting off of whether you succeed or fail as well!

  So, if you pay $80,000 for your start up inventory and it only costs Matco $55,000.
  80% of $80,000 is $64,000. So, Matco would have nothing to lose if you FAIL!

  This is just start up inventory though! If you buy tools in addition to the start-up inventory, and you have to contractually to try and compete with the OBC crew who have PLUS TRUCKS and Territorial Agreements, Matco is profiting off of ALL the tools you buy up until the time you QUIT (because you realize you have been taken for a ride) or you are terminated (because Matco has given you all that “World Class” or “Unmatched Support”).

• Just noticed that Matco even ADMITS that his route is JUNK in the announced places that his PRE-DEFINED “List of Calls” exhists.
  —————————————————————————————————————–
  Gatewood, 50, climbs the three large steps inside dozens of times a day as he stops at auto body shops, car dealerships, salvage yards and motorcycle shops. Once inside, he flicks a switch and lights illuminate waist-high toolboxes and shelves covered with tools in cases and plastic casing.
  —————————————————————————————————————–
  Notice Matco is BRAGGING that his “LIST OF CALLS” consists of BODY SHOPS, SALVAGE YARDS and MOTORCYCLE SHOPS!!!

  Remember the earlier post by unhappyfranchisee about the little shed on a hill that had a TOOL TRUCK outside servicing a shop out in the middle of nowhere!

  Now pictiure a Motorcycle shop and think about how many tools that motorcycle shops use every day that a Matco Franchise Distributor has access too! Why in the HELL is a Motorcycle shop on this LOC? It should be up to a Distributor, NOT MATCO, if a shop like this should be on their route list.

  From experience I can tell you I stopped at Motorcycle shops because the OBC distributor named BUD COOK stopped calling on those shops and when I was FORCED by Matco to surrender my successful Franchise that is what I received as part of what was to make me SUCCESSFUL again. Shops that the OBC distributor stopped calling on were to make me SUCCESSFUL. This is the Matco WAY!

  Again, I am a Veteran who did not enter through the Vetfran Program but this is what Matco is and how they conduct business!

• How many Distributors would say that all of the guys that Matco says are on your “List of Calls” in places like Body Shops, Motorcycle Shops and Salvage yards are true viable customers.

  Salvage Yards can be rewarding for distributors but are often full of uneducated parts changers (Guys who don’t have the Qualifications of techs in Dealerships) , make low income, have more turnover and move from one shop to another more frequently.

  Motorcycle shops are full of techs that need SPECIALTY TOOLS that as Matco Tool Distributors we can not PROVIDE! We can sell them the essentials (sockets, ratchets, boxes) but at this time specialty tools are controlled much like diagnostic software from car manufacturers.

  Every Body Shop has folks that Prep for painters. Folks that Paint. Folks that sand blast. Folks that assign jobs to Body Techs. The only real viable customers in a BODY SHOP are the ones that actually use TOOLS to repair the DAMAGE to the Vehicles. Not the ones who paint, prep and assign jobs. They might buy something that is cool and appeals to them but not very often.

  Is this why Matco adds those guys to our list so we can sell them an Antron die cast dragster, or a T-Shirt, or BEEF JERKY, or a Rat Rod, or a CALENDER?

  This is the TRUE lie of Matco! UNVIABLE ROUTES! With customers who don’t NEED tools but as a Franchisee we are expected to make a living off guys who prep for painters, paint, wash cars, change oil, run a service call truck, assign jobs to mechanics and in some cases answer phones!!!

• While the recruitment of veterans may raise some legitimate complaints, I think this is a much more significant issue.

  If Matco Tools controls virtually every aspect of the franchisee’s business – including who he/she can call on, who he can sell to, etc. – and even forbids him from calling on nearby customers who are not being serviced by other Matco dbrs, can it truly be said that that franchisee actually owns his own business? Add to that the fact that Matco franchisees rarely if ever are able to sell their business to anyone else.

  It raises a couple of questions. First, can Matco be successfully sued for violating labor laws if , like Coverall, their franchisees are actually misclassified employees? Will uncompensated work like warranties and repairs be seen as labor violations?

  Second, if Matco wants to have such a heavy hand in deciding who is on the LOC and who isn’t, who can be sold to and who can’t be, shouldn’t they also share in the risk if those decisions lead to failure?

• Article on the Forbes Snap-on controversy and whether tool truck franchisors should be honest in their franchise recruitment:

  Is there a place for Truth in Franchising?
  http://www.bluemaumau.org/there_place_truth_franchising

• Nice article Admin. People can’t keep their eyes closed forever. The real truth is getting out there thanks to the internet. Keep up the good work !

• help not sure what to do. It is thursday only sold 14,000 for the week ran out of tool boxes should I get a lawyer and sue I am making a huge profit but I know matco has some blame here.

• Oh Jason,

  If you only knew what a real salesman can do! I can’t count the number of weeks I did over $20,000 in SALES! Yet you boast of your piddly $14,000. I did most of mine with tools by the way! Matco toolbox are too rusty to compete with the competition!!!

• I am sorry! That should have been:

  Oh tlman!

• Jason, is that you outhere? How do you like my post to you on facebook? I have been sending messages to all who post on matco’s facebook, just thought you would like my messages.

  Do not forget to post anywhere,everywhere and on craigslist, especially hit in washington state , montana, and prescott valley, where don queen lives, where have you guys been lately, matco sure put a pacifier in your mouth.

• Guest said it well……….

  If Matco Tools controls virtually every aspect of the franchisee’s business – including who he/she can call on, who he can sell to, etc. – and even forbids him from calling on nearby customers who are not being serviced by other Matco dbrs, can it truly be said that that franchisee actually owns his own business? Add to that the fact that Matco franchisees rarely if ever are able to sell their business to anyone else.

  >>>>>>>>>What about that? “controlling” sounds more like EMPLOYER<<<<<>>>>OH there is no question, Matco distributors will be MOST successful in their legal suits as Matco IS violating labor laws much like Coverall<<<<<<>>>>>>>>>>>>>>>YES<<<<<<<<<<<<<<<<<

• https://www.facebook.com/matcotools

  Matco Tools
  Are you curious about what it’s like to be a Matco Distributor? Check out this video as Franchise Owner, Rick Yoder, explains what it’s like to work with Matco! Interested in becoming a distributor? Let us know! ^KH

  **********MESSAGE EVERY PERSON THAT MADE A COMMENT UNDER THIS
  POST!!!!!!!!!!!! THEY NEED TO KNOW THE TRUTH AND THEY DON’T WANT TO BECOME THE NEXT CHURN AND BURN VICTIM!!!!**********

• debbie,just because you failed does not mean all the others will fail.

• AND message the 82 people that “Liked” the post as well

  GET THE WORD OUT,

  DON’T LET ANOTHER PERSON FALL VICTIM TO THE CHURN AND BURN

• yes truth, you’re right, doesn’t mean all the others will fail

  JUST 49% WILL FAIL – ACCORDING TO MATCO’S OWN FDD

• Received an email today:

  Hello, I was a distributor in Biloxi Ms until about 6 months ago. Matco is now hounding me for the remainding balance that is owed and has turned it over to a collections dept. Is there anyway that you could help or maybe point me the right direction? Thank you.

• Somebody NEW gets terminated ……….. EVERY DAY

  nice work Matco

  NOT MY idea of “World Class Service”

  CHURN AND BURN

• …………..just a matter of time………….

  TERMINATION waits

• at least your gone.

• Your. Should be you’re…..

  Don’t be so sure ;)

  My work here is far from finished….

• Interesting reading on Craigslist ….

• CareerBuilder.com

  1000+ Jobs Found

  Guess FTC regulations don’t apply to everyone

  Rules
  Laws
  Truth

  Can’t find those at Matco

• I have a new Ad campaign for Matco Tools!

  MATCO! WE PRIDE OURSELVES IN DESTROYING LIVES WITH APPROVAL OF VETFRAN AND THE IFA. WE ALSO ENJOY BREAKING THE LAW AND WELCOME ANYONE WHO WANTS TO CHALLENGE OUR UNETHICAL AND IMMORAL WAYS!!! OUR DANAHER ATTORNEYS ARE SURE TO FIND SOME WAY TO SCREW THE AMERICAN PEOPLE WHO WANT TO LIVE THE AMERICAN DREAM AND OWN THEIR OWN BUSINESS!

  Once again American soldiers, THANKS for your patronage to our Country but thanks even more for making our WALL STREET INVESTORS happy with your continued support of our unethical, immoral and non-viable opportunity to own your own business!

  At least if you went with my Ad the truth would be heard!

• Excellent ad Todd!

  However; the truth has no place at Matco Tools