MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• its rather amusing that all the obc boys club hasnt been on here boasting and bragging about all that they are doing.
  i think that they are too busy doing collateral damage repair.

  debbie, you are right. this will be an interesting year for matco. they are already implementing alot of changes. one of those changes is that you can no longer buy from outside matco at all. we were allowed 20%. the new guys are allowed none.
  now how in the hell can they know whether you do or dont. oh wait a minute, could it be from monitoring your business on your computer by forcing you to down load to them every night. something that they claim not to do. my ass my friends.

  todd, how many people in the upper ranks at matco are vets and are just using the vet fran to take advantage of other vets for thier own personal financial gain. thats pretty low in my book.

  you got to give them a little credit though. they follow the golden rule, do unto other before they do unto you. they screw you before you can screw them. it works for them anyway.

  MATCO- keep your vigil and hope for the best, i dont see it working out for you too well. you got to remember that some of the people that you are believing and depending on are lying like hell and just hoping that they dont have to prove their lies. its going to be interesting who rolls over and who stays.

• Richard,

  Interesting comment on ‘buying outside.

  My contract (2000)stated, in part, ..”only sell Products and merchandise approved by Matco… and will not sell any products, tools, equipment or other merchandise which are competitive..except trade-ins…”

  One of my early termination letters stated as one of the violations: Restriction on Sales, ” you may not sell any products, tools, equipment….. without Matco’s prior consent.” “Your year-to-date ratio of sales to purchases is 43%, 12 below the minimum of 55% as stated in the 2010 FDD.”

  I did not read the 2010 FDD nor was I bound by that agreement.

  They would only know those figures by monitoring your data in MDBS.

  My final termination letter did not include many of the stated violations, only mentioned the purchase average.

  I will be attending a tool show in Florida in the coming months and I know that a leading Matco Distributor in this area will be attending also. I’m sure he won’t be buying anything, as that would violate his agreement with Matco :) But as he is one the OBC, I suspect his purchases will be ignored…

• Hey Guys and Gals,

  We all went through training in Stow, Oh with a group, No Doubt! I went through with 10 and only 1is left, Organized went through with 12 and 0 are left.

  Please find out who is still in and who has been churned in your graduation classes and post results. I KNOW the results will be alarming but this is one more thing we can do to shed light on a subject NO ONE wants to talk about. Please list factual info.

• I also need your helping petitioning the IFA to remove Matco as a Franchise participant. The IFA needs to hold Franchisor’s who are in business to scam instead of offering good business opportunities to those willing to invest thus boosting our economic condition RESPONSIBLE. Soon you will be receiving this petition in your facebook account. Please sign up and state the reasons why you support it.

  Change doesn’t happen unless people like us (Americans) MAKE IT HAPPEN!

  Sometimes the battles will be great and the Lord knows my wife would like me to forget about the whole thing and move on but just like in the military when I promised to defend my country against enemies foreign and domestic I am going to exploit and tell my story of who Matco is and why they are allowed to perpetuate a Franchise SCAM under the cloak of the IFA, Vetfran and Minorityfran and FranPac.

  It is funny to me that Matco Franchisees can be terminated for a purchase average but Matco can continue to profit by CHURNING soldiers in and out of their Franchises showing no record or statistical proof that they will EVER be successful as a Matco Franchise Owner.

• former distr
  they know everything that you do and when you do it. thats how mdbs is programmed for.
  all the obc guys are not under any of the rules that newer dbrs are. matco is trying to change that now.
  i was given the option of terminating myself which i took. i waqs told that if i didnt they would force me out in 60 days. i was tired of all the bs and non support and broke as hell so i signed the paper. it didnt even have my name typed on it. they had crossed out another name and hand wrote my name in. is that class or what.
  they are in for a rude awakening. its going to be real interesting to see who rolls over and who stays. they might be suprised who talks.
  its very interesting that they want everyone to sign a form that you cant speak against them. i was never offered and would have never signed that. another form of control so that they can keep their bad practises under wraps and not made public. thats why they dont like this site.
  if you dont have anything to hide then you dont need to worry. MATCO NEEDS TO WORRY. THER ARE SO MANY LIES THAT HAVE BEEN TOLD THAT IT IS PATHETIC.

  I HEAR THAT TRAIN A COMING, ITS A COMING AROUND THAT BEND, HEADED STRAIGHT FOR MATCO IN STOW, OHIO. WHOOO WHOOO LOOK AT IT GO.

• Who attends the IFA Legal Sumposium? Franchisors who sell Franchises to Franchisees.

  What are they doing at these Legal Symposium’s? Educating their Franchisors on how to LEGALLY screw their Franchisees.

  Who makes money at these Legal Symposium’s? It is definitely NOT the Franchisor.

  Why would an Organization like the IFA who created and controls the access of selling directly to Veterans through the program THEY created (Vetfran) want to hold companies like Matco accountable for their actions?

  Does the IFA enable Franchisors to commit FRAUD against their Franchisee while staying under their protective umbrella?

  Just check the fees associated with attending this Legal Symposium. Then check out the fees and the cost of training courses (POINTS) in order to become a CFE (Certified Franchise Executive) which the IFA created as well.

  Then read the History of the IFA which was established much like our constitution with the idea of implementing a system that is hard to corrupt and control and prevents us as Americans from getting screwed by our Government.

  Do you think George Washington or Thomas Jefferson would be happy with what our government has become? A pig that is so fat and so corrupt that if you enter his domain he will eat you as well. This is what Franchising has become to the American people.

  Yes, their are some GOOD franchises out their but just like our politicians the GOOD are outweighed by the corrupt. Those who don’t care about selling something that works and those who can be bought for their vote in Congress in passing some bullshit that ultimately SCREWS who? The American tax payer.
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  2012 Legal Symposium
  JW Marriott
  Washington, DC United States
  Sunday, May 20, 2012 to Tuesday, May 22, 2012

  IFA’s 45th Annual Legal Symposium was designed by a task force of your peers in the field of franchise law with a particular emphasis on how legal and regulatory issues affect the everyday business operations of the franchise system. Working with a task force to develop our program helps us ensure we are featuring the most relevant topics of the day as seen by franchise law and business professionals.

  General Info General
  Meeting Schedule Schedule
  Speakers Speakers
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  Register Register Now

  General Information

  Register now for the 45th Annual Legal Symposium in Washington, DC, May 20-22, 2012.

  To register for this meeting you will need to login. If you do not know your password, click here.

  Registration fees are as follows:

  IFA Members
  (includes course materials on CD-ROM)

  · 1-3 registrants when registering together from the same company: $875

  · 4 or more registrants when registering together from the same company: $825

  Non-Member (includes course materials on CD-ROM): $1,425

  The system will apply the correct rate at checkout.

  Newcomers’ & First TIme Attendees’ Dinner: $100

  If you are a young associate, paralegal, under age 35 and/or have been practicing franchise law for less than 5 years, please join us for dinner at Chef Geoff’s – a fun fine-dining establishment that is always at the top of Washington’s best restaurant list. Take advantage of this opportunity to network further with other professionals in the franchise legal community.

  Attention Newcomers and First Time Attendees!

  You are invited to join us at the welcome reception beginning at 5:30 pm on Sunday, May 20, to meet your assigned Ambassador. IFA Ambassadors will assist Legal Symposium Newcomers and First Time Attendees by answering questions and making introductions. Please check the “Newcomer” box on the registration page so we can assign an Ambassador for you.

  Hotel Information: You may reserve for your hotel room at the JW Marriott online at https://resweb.passkey.com/go/wasjw2012ifalegal or by calling 1-800-266-9432 or 506-474-2009 (int’l) and indicate you are attending the IFA 2012 Legal Symposium. Our room rate for a standard room is $306 (single or double) and includes complimentary internet access in the guest room. The deadline for making reservations is April 27 or when the IFA room block is filled, whichever is first.

  Cancellation Policy:

  Full Refunds (minus a $50 administration fee) will be granted for registrations cancelled at least 14 days in advance of the Symposium. A 50% refund (minus a $50 administration fee) will be provided for registrations cancelled 7-14 days in advance. No refunds will be permitted for cancellations less than 7 days in advance or for “no shows.” All requests for refunds must be made in writing.

  Substitutions are permitted at any time.
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  $306 a night (Standard)
  Members:
  1-3 $875 to attend
  4+ $825 to attend
  Non-Members
  $1425 to attend

  $100 Dinner

  Is this a Non-Profit Organization?

• Is the IFA lobbying Congress to get MORE SBA loans to give to Franchising so “Churn and Burn” Franchisors can operate without losing ANY money and have the AMERICAN tax payer pay the bill?
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  Lending Summit highlights progress in small business lending, though gaps remain
  Posted on April 17, 2012 by Matt Haller
  2
  inShare

  An expanded coalition of trade groups representing the financial services and small business communities today announced an expanded private-sector partnership to strengthen small business lending and spur job creation at IFA’s 2nd annual Small Business Lending Summit.

  The groups, including the Consumer Bankers Association, Financial Services Roundtable and the National Association of Government Guaranteed Lenders, cited regulations as a key factor impacting their ability to make loans and access capital.

  The groups called on policymakers to hear about the challenges small businesses and lenders are facing in the current economic and regulatory environment. Speaking at the summit, SBA Administrator Karen Mills praised the IFA for its support of SBA lending programs, reporting the SBA has guaranteed $5.3 billion in loans to 5,200 franchisees during her tenure. House Majority Whip Kevin McCarthy said the rulemaking from the Dodd-Frank financial reform law needed to be slowed down in order to free up capital for small business loans.

  Some of the media coverage of the Small Business Lending Summit is below:

  FOX Business: What’s Driving the Franchise Lending Shortfall
  CNBC Squawk Box: Lending Shortfall Could Cost Thousands of Jobs
  The Wall Street Journal: Small Business Owners, Banks, Blame Washington for Credit Woes
  CNBC: Once Seen as Risky, Banks Rethink Franchise Loans
  Entrepreneur: SBA Chief Karen Mills on the Small Business Lending Comeback
  Entrepreneur: Small Business Lending: Getting Better, Still not Great
  QSRWeb: Franchise Lending on a Steady Upswing
  The Street: 3 Things You Should Know About Small Business: April 17

  At the Summit, IFA released a new report that shows a bank lending shortfall could cost the franchise industry 94,000 jobs. Jon Luther, IFA Chairman and Chairman of the Board for Dunkin’ Brands and Arby’s International, joined CNBC’s Squawk Box and Fox Business to discuss how the IFA is helping the small business community recover from the lending crisis. ”Franchises have a very high success rate and everyone coming together at the summit aides the world of franchising,” Luther says. There is a high demand for franchising because the formula for franchising is a workable formula that has been proven and tested and there is a high success rate when opening a franchise store Read more.

  IFA also announced two new strategic partnerships at the Summit. An IFA/BoeFly monthly Franchise Lending Matrix was released, showing franchise lending improving steadily for the last 12 months. Through its alliance with Guidant Financial, IFA and Guidant will jointly develop and conduct educational programs focused on credit access for franchise businesses.

  Posted by Matt Haller, IFA Sr. Director of Communications
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  SBA Administrator Karen Mills praised the IFA for the RECORD setting 5.3 BILLION dollars lent to 5,200 Franchisees during her tenure as Administrator.

  The IFA claims that 94,000 jobs will be lost if our Government does not release more SBA Loans so that Franchising can continue its cycling of “Churn and Burn” franchises. Who pays for it in the END? TAX PAYER

  Who saw it coming? No one.

  Who is allowing it to happen? An Organization which was created to ensure that it doesn’t happen.

• Why are we allowed to be treated unethically by our Franchisors?
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  Franchise Relationship Legislation

  SUMMARY

  No legislation to alter the relationship between franchisees and franchisors has been introduced in the 107th, 108th, 109th or this, the 110th Congresses. IFA continues to educate congressional offices, especially those of new Members, about franchising, and to watch closely for the introduction of franchise relationship legislation.

  BACKGROUND

  In the 106th Congress (1999-2000), H.R. 3308, the “Small Business Franchise Act,” sponsored by Representatives Howard Coble (R-NC) and John Conyers (D-MI) would have created a federal law that superceded the terms of private contracts between franchisors and franchisees, preempted state law and made the federal government a party to every franchise agreement. In addition, H.R. 3308 would have created more than 50 new federal causes of action, eliminated threshold requirements for bringing suit in federal court and permitted unlimited damage awards.

  Following a U.S. General Accounting Office report issued in July 2001 that confirmed that the Federal Trade Commission (FTC) is effectively enforcing its regulation that protects those who invest in franchised businesses, there was little support for reintroducing such legislation.

  KEY POINTS

  The so-called “Small Business Franchise Act” had neither the support of small business nor the franchise community. No national small business organization supported H.R. 3308. The U.S. Chamber of Commerce and its Institute for Legal Reform vigorously opposed the bill. The National Association of Manufacturers and the Small Business Survival Committee publicly expressed opposition to the legislation.
  The concepts embodied in the bill were controversial; they were opposed by many franchisees because they know such legislation will affect the national and local reputation of their business. If a bill similar to H.R. 3308 were to pass, both franchisees and franchisors realized it would mean more money wasted on litigation and less money to invest in their businesses.
  State legislatures in more than 30 states have considered and rejected similar legislation since 1992. In Iowa, the only state to pass franchise relationship legislation before this year, franchise development dropped dramatically as a result of the legislation. By 2000, the Iowa legislature had repealed many provisions of the law.
  There continues to be bipartisan opposition to a franchise relationship bill in the Congress.

  FTC Compliance Guide Now Available

  The FTC Compliance Guide is intended to help franchisors comply with the Federal Trade Commission’s amended Franchise Rule. Since July 1, 2007, franchisors could comply with the FTC’s disclosure requirements by using any one of the following formats: (1) the original Franchise Rule; (2) the Uniform Franchise Offering Circular (“UFOC”); or (3) the amended Franchise Rule.

  Once a franchisor selects a disclosure format, it must use that format and no other. As of July 1, 2008, however, all franchisors must use only the amended Franchise Rule. This Guide does not modify the amended Rule. It explains the requirements of the amended Rule.Moreover, it does not exhaustively cover every requirement contained in the amended Rule, but focuses on amended Rule provisions that depart from the familiar UFOC Guidelines. This Guide also includes sample disclosures that illustrate the new provisions and will be useful in preparing compliant disclosures.

  FTC Downloads:

  Compliance Guide: http://www.ftc.gov/bcp/edu/pubs/business/franchise/bus70.pdf

  Rule FAQs: http://www.ftc.gov/bcp/franchise/amended-rule-faqs.shtm

  Franchise Rule Opinions: http://www.ftc.gov/bcp/franchise/netadopin.shtm

  FTC Franchise Rule

  For more information, please contact Jay Perron, IFA’s Vice President of Government Relations, at jperron@franchise.org or (202) 662-0797
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  Is it because the IFA does not want the Franchisee to have its day in court?

  In today’s Franchising world does any Franchisee have the opportunity to be heard by a JURY?

  Or has the right to a trial by jury been STOLEN from the American Franchisee who if they DON’T sign the Franchisor’s agreement can NOT participate in Franchising?

  So, as an American, I can become a Franchisee and have my Franchisor commit acts of FRAUD, LIE, THREATEN, STEAL, CREATE FALSE DOCUMENTS and FALSELY TERMINATE my Franchise and receive NO CONSEQUENCES for their actions BECAUSE I SIGNED A CONTRACT!!!!!!!!!!!!!!!!!!!

  Why don’t the IFA advertise that if you sign a contract with a Franchisor that your Franchisor has a free pass by the IFA and the FTC to screw you as a Franchisee?

  Is this why the FTC will do nothing about Matco’s false recruitment video by President Tim Gilmore, then Vice President?

  Is this why the FTC still allows Matco to advertise their Franchise opportunity as employment opportunities through POPULAR employment web sites like careerbuilder.com?

• Haven’t we “THE TAX PAYER” heard a lot of times about how their is going to be a crisis if the government doesn’t give out more money we don’t have putting the tax payer deeper in debt?

  Didn’t anybody LEARN anything when Obama and our Government poured all that money into the banks?

  Did anyone, besides myself, hear about Bank C.E.O.’s getting fat BONUSES shortly after they got all that money?

  Now the IFA wants politicians to believe that our troops and Franchisee prospects NEED more SBA funded money to PROMOTE franchises like MATCO who operate “CHURN and BURN” franchises. Who will go as far as committing FRAUD, LYING, THREATENING, STEALING and CREATING FALSE DOCUMENTS to TERMINATE their franchisee once they sign on the dotted line.

  I guess that is because the IFA, who trains their members on how to PROTECT themselves in their contracts, knows that once the distributor signs that they will never get their day in court with a trial jury. At least that is what I am being told.

  I can’t believe for one minute that my America “Land of the Free” “Home of the Brave” would allow a contract to PREVENT me from receiving a FAIR TRIAL in an AMERICAN COURT SYSTEM.

  WHO IS GOING TO GO TO BAT FOR ME!!!
  WHO IS GOING TO GO TO BAT FOR THE NEXT ME!!!

  I SERVED my COUNTRY!!!

  WHERE IS MY JUSTICE!!!

  Didn’t Patrick Henry on March 23, 1775 proclaim when our country was not even fully formed and independent “Give me LIBERTY or give me DEATH!”?

  I am appealing to anyone who will listen the time for change has come!!!!!

  An American tax paying citizen should never have endured what I had to endure as a Franchise owner. Their HAS to be SOME KIND of investigation. Their has to be SOME KIND of responsibility. Matco CAN NOT do what they did to me and what they INTEND to do to others. FRAUD, LYING, THREATENING, STEALING and CREATING FALSE DOCUMENTS to FALSELY TERMINATE a FRANCHISEE has to be dealt with in a TRIAL COURT.

  An agreement I was FORCED to sign to be a FRANCHISE owner should not be the letter of the LAW in my case.

  I have ALWAYS been told my ENTIRE life that if someone COMMITS a very atrocious act against you “Not to take the LAW into your OWN hands” that our government, law enforcement and court systems are their to defend your rights.

  I am appalled that I am being told my day in a court of law will never be.

  Just like the paragraph below explains, I now understand WHY!!!!!!!!
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  About the International Franchise Association
  The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
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  IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising.

  IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising.

  IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising.

  Is it sinking in yet AMERICA?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

• An Organization like the IFA should NOT keep me from getting COURT JUSTICE!

  The IFA’s only interest is to PROTECT franchising. If some franchisee complains or calls claiming they were treated fraudulently by their franchisor to the IFA they will get a response just like the one I got from Beth Solomon (IFA Vice President of Strategic Initiatives and Industry Relations) claiming that I was the reason for my franchise failure. Of course, it took her two weeks to call me after receiving my email. I guess she didn’t email me because she didn’t want me to have PROOF of what she wanted to tell me over the phone. She didn’t want a record of her telling a U.S. Army Veteran that served his country for 3 years and had his franchisor screw him out of his franchise to PISS OFF.

  All I wanted her to do was LISTEN but she didn’t want to HEAR! She didn’t care! I even offered to drive all the way to visit her, where ever that is, but she wanted NO PART of the truth.

  She told me that if a COURT decided that actions needed to be taken against Matco that they would do something. But they could do NOTHING till the courts decided. Is that because Beth Solomon already KNOWS how the contracts that members of the IFA read? YOU BET YOUR SWEET #@%!!!!!

  I WANT MY DAY IN COURT!
  I WANT MY DAY IN COURT!
  I WANT MY DAY IN COURT!

• http://www.change.org/petitions/veterans-deserve-success-not-matco-tools-franchise-failure?utm_medium=facebook&utm_source=share_petition&utm_term=friends_wall

• Hi friends,

  A friend of mine started this petition on Change.Org – it IS important. Please sign!
  Thank you SO much,

  Debbie Solko

  http://www.change.org/petitions/veterans-deserve-success-not-matco-tools-franchise-failure?utm_medium=facebook&utm_source=share_petition&utm_term=friends_wall

  CLICK LINK AND PLEASE SIGN!!!!!!!!!!!!

• Can anyone provide the NEW Matco Tools U.F.O.C disclosure agreement. It should have been out in March of 2012. Any help would be greatly appreciated. It should not be TOP SECRET and easy to get RIGHT! After all Matco has nothing to hide with their reputable franchise opportunity which is PROTECTED under the IFA umbrella allowing Matco to commit FRAUD, THREATEN, LIE, STEAL and create FALSE DOCUMENTS to falsely terminate its franchisees.

  It must be nice to be part of an organization that is UNTOUCHABLE!!!

  An organization that has NO PROBLEM turning their ear from the franchisee because they PROFIT from selling to franchisees.

  I understand WHY the IFA and Vetfran have committee members made up of individuals who either sell franchises or profit giving advice to franchise companies or protect franchise companies from being sued.

  What I don’t understand is how an Organization can turn its eyes and watch innocent SOLDIERS who need employment become the next VICTIMS in corporate SCAMMING!

• Pingback: MATCO TOOLS 2012 Franchise Disclosure Document (FDD) : Unhappy Franchisee

• MATCO TOOLS 2012 Franchise Disclosure Document (FDD)
  http://www.unhappyfranchisee.com/matco-tools-2012-franchise-disclosure-document-fdd/

• What are the consequences for falsifying information in a U.F.O.C.?

  What if a Franchisor is caught in a U.F.O.C giving unreliable data to new recruits?

• I am petitioning the IFA (International Franchise Association) to hold their franchisor members responsible for acts of fraud, threatening, stealing,lying and creating false documents to terminate their franchisees from their agreements.

  Although our franchises may be different most are members of the IFA and the IFA is stealing our rights to due process by helping these franchisors word their contracts in a way that when we sign up to start also forfeits our rights to due process should THEY commit CRIMINAL acts against our franchise.

  Please go to the link below and sign my petition. Then download it and post it to your web site so others will know and can sign as well.

  http://www.change.org/petitions/veterans-deserve-success-not-matco-tools-franchise-failure?utm_medium=facebook&utm_source=share_petition&utm_term=friends_wall

  Thank You!

  Todd A. Peterson

• Thinking about buying a Matco Franchise?

  Read this article from a Franchise Attorney of 40 plus years experience.
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  Franchise Due Diligence Retention Issues – For Franchisees

  Author Richard Solomon is a Franchise Lawyer with four decades of experience in business development, antitrust and franchise law, management counseling and dispute resolution including trials and crisis management.

  It is unfortunate that so many people risk everything they own and may earn in the future, unless they go through the bankruptcy process, on franchise investments that are unsound and that fail. Every week someone comes to me with the problem of being totally wiped out, asking what can be done. The most important lesson from this regularly occurring disaster is that, instead of coming to me after you have been fleeced, you should have come to me before you made the investment so that there might have been a good chance that you wouldn’t have been fleeced in the first place.

  Most of these folks lack the financial resources to put up a fight, even if they had something to fight about. Being broke when you decide you’ve been had is really the crooked franchisor’s best defense. If you have any money left when they are done with you, they haven’t done their job correctly.

  Not every new franchise is run by thieves. Many are. Many more are run by relatively honest people, but are failed business models because their owners were unable to recognize that they had no potential for successful franchisee ownership and lacked the ability to make changes in the model that might have given it a chance at survival. Many of these were ill advised by franchise consultants who told them that their business was perfect for franchising and sold them a bill of goods on fortunes to be made by letting them show you how to franchise your business. These guys end up broke and in bankruptcy too. People who tout themselves as franchise consultants on the subject of how to franchise your business never tell anyone that their business is not suitable for franchising, because telling them that it’s perfect for franchising is where the big money is. It makes no difference to the crooked franchise consultant that the franchisor may fold after the first twenty or so franchises are sold. The fees earned for that are really quite substantial. New franchisors get cheated too.

  No matter which it might be, thief or incompetent, the result for the franchisee is the same. Most fail and are bankrupt and without effective remedies.

  What that tells you about franchising is that subsequent lawsuits are not the answer to the problem of being ripped off. The answer to that problem lies only at the front end. Obtaining the competent deal and legal due diligence that informs you of the truer nature of the risks than the sales and marketing brochures and UFOC packages provide is the only – yes, the only – truly effective protection against financial ruin. Once you sign the contract and write the check, you are toast!

  While there are occasional instances in which established franchisors are fleecing investors through misrepresentation of the quality of the deal (usually through “pump and dump” schemes), for the most part it is the newer franchisors who present the highest investment risk of fleecing. While they themselves may not know how to be smooth about robbing you, they can hire franchise marketing/sales groups – many of which call themselves counselors and franchise investment advisers and pretend they are helping the franchisee investor. These folks only get paid if the franchisee prospect buys a franchise. The franchisor pays them a commission on the sale. The franchisee investor is usually so unaware of the realities that it does not occur to him that someone who gets paid by the franchisor if they buy a franchise isn’t really working for the franchisee investor, no matter what they may say. DUH!! They all work for the franchisors.

  If you go on franchise industry discussion forum web sites, what you find is a lot of folks who lost everything complaining that the government needs to protect them. One has to be kind, as these folks are desperate and destitute. If you budget for competent due diligence, not just superficial contract explanations, you have a much better chance to avoid a lot of the risks of being cheated. Competent due diligence on a franchise investment will cost from $ 3,500 – $ 5,000. If you don’t have enough money to handle that with relative ease, then you don’t have sufficient investment capital to assume the risk of a franchise investment. Wait until you can afford to get good help in trying to avoid being robbed blind. Franchisors never put such an item in their list of total initial required expenses, because they don’t want you to invest in competent deal due diligence. The thieves want you to go into the deal blindly.

  If you think that you can afford to roll the dice with everything you have in this world, don’t later complain that the government isn’t protecting you from risks you could have protected yourself against. The reality is that the government isn’t your nanny and you have to protect your self. What you think ought to be simply isn’t. You have to quickly become aware at least of the fact that you have to go out and find the due diligence assistance that works for you and not for the company that wants you to buy their franchise. Moreover, the due diligence has to be competent deal and legal due diligence. Just having a lawyer “read the contract” is utterly worthless because it doesn’t inform you of the quality of the investment risk. If your lawyer or other advisor lacks the ability to vet the whole deal for you, you are no better off than had you simply gone to Las Vegas and bet everything on the roulette wheel. Your MBA degree and twenty years corporate business experience have not prepared you to do what is required to vet a franchise investment opportunity. Disengage your ego and accept that in the presence of seasoned thieves, you are just so much fresh meat.

  You will probably start looking for due diligence help about the time that you decide you have found the franchise investment of your dreams. You will call up and ask for help vetting that particular franchise. If the due diligence resource is competent, they will tell you that you need to be prepared for a negative recommendation and to be willing to continue looking. The retainer quoted for the due diligence work will take into account that the deal you walk in the door with probably isn’t right, and that you will have to look further. That will have been built into the retainer, and you should not be charged a new retainer for every possible investment you come in with. Good due diligence franchise investment vetting always starts with the expectation of having to sort through a number of frogs before the one you kiss turns into the handsome prince.

  In my experience it is usually the third deal that is the one that turns out to be the right deal, as by then the client knows better what we are looking at/for, and has been better at picking investment candidates. If the third deal isn’t right either, the client usually decides to step back from franchise investing and take a breath and look around for something to do that doesn’t involve a franchise. A third bad deal in a row tends to leave a bad taste in your mouth and you don’t want to continue for a while. Buying a franchise because you are worried that you may not have anything to do for a while is a really bad decision. The value of not losing your investment and of avoiding continuing obligations on leases, loans and franchise contracts, many of which you will have personally guaranteed, far outweighs the burden of having to make do for a while. Owning your own business requires so much coping ability that people with the requisite skill set can find ways to make due while they give it further thought.

  You have to keep vividly in mind that with a newer franchise, you are asked to sign a contract that no normal person would ever sign unless the reality of the opportunity were simply the most marvelous thing you could possibly imagine. No newer franchise opportunity can ever be like that. It is unproven. It might turn out to be the best thing since sliced bread, and then maybe be worth accepting the terrible contract terms. But it isn’t there now. On a broad policy level, these shenanigans will stop when people stop signing terrible contracts on unproven propositions. But that won’t help you in making you investment decision now. The way things stand today, if you’re too smart to accept a pig in a poke on awful terms, there will always be some sucker on the phone in a few hours who can be fleeced and who won’t do what is required to obtain protection. I’m a lot less interested in policy questions than I am in seeing to it that my clients don’t get fleeced today.

  When they first come to me, they have bought the sizzle. Sizzle is never trustworthy in the sense that sizzle is not susceptible to extrinsic verification. Finding a franchisee who is successful does not constitute verification of sizzle reliability, even though most folks think that is the proof you need. If you believe that finding/being steered to successful franchisees is a reliable indicator of the truthfulness of what you are being told, you are not ready for prime time in this game yet. There is no potential return on investment when you invest in the sizzle. Lots of things sizzle in the presence of heat. Damn few of ‘em are steak. Among newer franchises, even what is not sizzle is frequently untrue when exposed to harsh and critical analysis. For example, a lot of what you are told that is true is simply irrelevant to your investment decision. A sales technique of which you are probably not aware is to make a lot of statements that, while irrelevant to your investment decision, are easily verifiable. That presents an aura of truthfulness that facilitates convincing you that the untrue materials are worthy of your reliance. Of course, if you or your lawyer really did read the franchise contract, you will find that in it is a clause in which you agree that you did not rely on any information not specifically stated in the UFOC and the contract. That is intended by the crooked franchisor to be a license to lie to you in all the sales and marketing brochures and presentations. Did you know that? Did you recognize that that was what was happening when you read it? Did your local lawyer recognize that dynamic? This aint Sunday School.

  That is just a small example of how franchise investment deception works. There are more deceptive techniques than anyone could possibly encompass unless fraud analysis was what you did for a living. Even then, the mind of a crook is always fertile and new deceptions arise every day.

  Franchising has been wonderful for many investors for a long time. It is just plain awful that it is so abused by dishonest people and that innocent, ignorant investors are so easy to fleece. The government won’t rid the industry of fraud in franchising any more than the government had rid the securities industry of fraud. Due diligence before you invest is the only way – yes, the only way – to critically reduce the risks of being fleeced. Even with the best due diligence there is no guaranty of success. No expert can get everything all the time. But when you consider what the risk is when you don’t get the help you absolutely have to have, the answer about what to do and how to go about it is obvious.
  ————————————————————————————————————–
  According to this Franchise Attorney screwing franchisees has been the mission of franchising for a LONG TIME!

• This attorney must have read the Matco Tools FDD as a basis for this story, fits like a glove

  “Pump and Dump”

  “Churn and Burn”

  “Fleece and Flush”

  This is not the way Franchising started out many years ago, however with deregulation this is now the new world of small business in the United States

• That is what Matco is! A Danaher owned company that is allowed to be fraudulent, commit fraud and act fraudulent with the applause of the IFA and it’s organizations. (Vetfran, Minorityfran, FranPac, etc.)

  What happens when a cattle farmer needs money?
  He groups his hefty, strong animals into a corral and loads them up to a slaughter house.

  What happens when IFA and its franchise members need more money?
  The IFA throws a big convention and leads our troops through their organization Vetfran to open up the slaughter house and make lots of money for the IFA and its members.

  You know, members like Lonnie Helgerson who sits in a Vetfran Committee chair, and makes money off of a list of vets that he gives franchisors access to when they PAY HIM FOR IT! How does a man get access to info like that and create a business under the flag of heading a committee to support and help our troops? If you ask me he needs a cell next to Bernie Madoff!

• Well, I didn’t want to leave you out today Matco!

  You still suck as a franchisor!

  You are still backed by a FRAUDULENT organization who will not hold you responsible for your Immoral and Unethical business behavior!

  You are still going to misrepresent yourself as a viable opportunity to our Veterans coming home from overseas through the IFA’s established organization Vetfran!

  You still are going to contribute to the IFA through FranPac in an effort to get the IFA’s lobbyist to get you more to tax credits and SBA loan money from our government!

  You are still going to sell non-viable routes to your franchisees to keep your “Churn and Burn” operation alive!

  AND I am still going to keep posting my story and my knowledge of this SCAM called franchising because your DUMB ASS would not make it right when I drove 13 hours to Stow, OH. to amicably discuss my false termination and the treatment I received from your RM and DM which was wrong on SO MANY ACCOUNTS! Sorry Vice President (Ernie Lauber) and Mike Swanson, your meeting at Bob Evans in which you told me in exchange for signing your release form which would have prevented me from telling my story and allowed you to make me ask for permission (in writing) to discuss my franchise experience didn’t work. You have stole from me in many times but you will never steal from me again.

  I will receive justice! I have a NEW PLAN TOO! I will call it my Back-up Plan!

• Just in case someone is looking to buy a Matco franchise please read what Matco did for me as a United States citizen, Veteran and Owner of a Matco tools franchise!!!

  First the Distributor before me only worked 3 days on a Matco route and yes I bought it. I also bought his truck. I could have taken a route closer to where I lived but I liked the truck and established customers. Did not want the Isuzu Matco was cramming down my throat.

  So I went to this distributors house and I saw his financials. I cringed he was not doing well. Of course, he only had 3 days on route per week the other two and Saturday he was restoring vintage cars.

  I talked to DM who had told me this was a great business opportunity and explained to him I had my doubts about the route. I told him I didn’t think by looking at the financials and the amount of customers on the books I could be competitive with the 333 customers I was given which was largely made up of very few shops:

  Monday- 13 shops 68 customers (One shop had 5 customers and while I was riding around with Trainer the first week he informed trainer and myself that he had told DM he didn’t want a Matco truck on his property) So -5 equals 63

  Tuesday- 6 shops 73 customers (5 shops were part of 1 Auto Park) it was really two shops.

  Wednesday-3 shops 68 customers

  Thursday- 4 shops 76 customers

  Friday- 7 shops 48 customers

  Grand total of 33 shops and 328 customers.

  So I explain to DM that this is a very low number and I think that distributor I did ride with has a lot more customers and definitely a larger route.

  He tells me “that Matco usually gives Distributors a minimum head count and leaves it up to them to grow their own route.” That made sense to me. People who work hard succeed and those who start up a franchise and don’t work will fail. He assures me that I will pick up shops that need a Matco distributor because they will call me when they see my truck on the road and get the number off the back and side of truck. He also tells me to call him if I want to add a shop so that I don’t pick up shops that belong in someone elses area or on an open route.

  So i go to training come back load up my truck and start my franchise. Things were terribly slow in the begining. Learning the computer, talking about tools instead of turning them. But after two months I found myself going home early every day two days by 2:00 and 2 days by noon. The other day 7-5.

  I was hitting all the shift jobs during the daytime when other distributors serviced them and I got to thinking when I was a tech and how it made me feel when other tool guys would not come and service me on a third or second shift. So, I restructured my route and started working longer hours and as people called me and needed service I would add them to my route calling my DM for approval first.

  After about 6 months I was kicking ass! My customers loved and respected me. I would work late come on their shift and not in between shifts. My DM was plastering my walls with sales achievements plaques from meetings. Life was good.

  I filled the holes in my day with shops I added with DM approval.

  Things are going so well I was inventory rich. I was putting on my truck 3/4 in drive everything. I was stocking specialty tools out my butt. I was adding pliers and all kinds of tools I thought I would need when I turned wrenches. I was living the Matco dream.

  In June of 2005 I had a fire on my truck and found myself in a bit of a pickle on a tool truck. It seems that no companies(Not Matco’s Vendors) except for the manufacturer of my truck would take my truck in trade. So I did trade my truck in and got a bigger one because I had grown my inventory to over $200,000 my cost. I bought a 26′ Peterbilt.

  So although I was without an actual tool truck for 6 months I had acheived a top 50 ranking with Matco Tools in 2005. I worked out of a temp truck and it was such a piece of crap that I ended up working out of my Jeep Cherokee a bunch.

  So at Cancun, Mexico Expo in Feb. 2006 I receive an award from Matco being 41 out of over 1500 distributors from my new RM Tim Novak. I also received a GOLD sales excellence ring as well. Our whole District received awards for being a #1 District. Our DM was pumped. He was talking about growing our District and helping our Region become #1 in 2006. I purchased around $25,000 at Expo.
  I remember Tim Novak asking me to tell the other distributors in our Region what I did that made me so successful. I told them say hi and talk to every customer in the shop every week. Work longer hours than your competiton. Tote and promote Matco products.

  In less than 3 months after Expo my DM was fired. A fellow distributor would quit has franchise (I believe he was 45 out of 1500+) and I would be threatened by Tim Novak to surrender shops I had established with my Ex DM (of which I had PSA written and credit apps approved and denied.) or I could lose my franchise.

  Having Tim Novak in my home and knowing that I am heavily invested in tools and truck and with Tim threatening my franchise I caved. He left me with Rick Pena to decide what shops I would be surrendering and I did.

  Before Rick Pena came to me he and another DM surveyed our entire area and only found around 100 shops not getting service between me and another distributor Bud Cook. Rick explained to me that during his surveys he only found two shops that had negative things to say about me and that over 95% of my customers were happy to have me as their distributor. But he also explains to me that one of the reasons my DM had been terminated was because he had promised a new distributor Michael Johnson a Distributor Franchise but had not surveyed a route to put him in. Rick had been tasked with the duty of finding this Distributor a route. I suggested to Rick that there were at least three different routes available in Little Rock and I knew that there were others elsewhere but Rick said that this distributor was promised a route in NWA. I told him I didn’t care and that everything I had had been approved through my DM to call on. I even told him about shops I had picked up temporarily to help prep a route Kevin Hodges dad Gerald had taken so that TP would be established and customers broken tools would get serviced before Gerald got there.

  He showed me his survey sheets and I asked him if I could keep them. I DID!

  He showed me sheets with tacks on them in different colors showing shops with no service, shops with my “LOC”, shops I was calling on but had not been signed into my route list. I asked if I could keep them. I DID!

  I told him that I wasn’t giving up one shop and that I was servicing them all and he himself said my customers were happy. He said that is all true but this distributor was promised a route and my shops that I had added were not secured on my route list. I told him my DM gave me approval to call on them. He informed me according to my contract that they have to be in writing and signed by me and DM. I told him I didn’t care. I also told him maybe it was time to talk to a lawyer.

  Fact of the matter is I was still paying off tools ordered from Expo. I owed over 10,000 on deferred payments of inventory that was rolling in months after Expo. I couldn’t afford an attorney at that time.

  But soon Tim Novak flew in from Texas and threatened me with my franchise. Showed me the same tacks on a route maps (which I kept Yes I have Tim and Rick copies of the same goople map crap) I ask him point blank “Can I lose my franchise if I don’t surrender shops” he says “Yes”.

  So I surrender because although I was sure I was right and I new my fired DM gave me those shops it did say it had to be in writing. I felt it would be better to float in the boat than hire an attorney and maybe sink it.

  Tim left and I gave Rick enough customers to give Michael 338 customers on his “LOC”.

  So I am thinking it is a shitty deal but it is over. Not so. Rick comes back to my house and tells me that I gave Michael “JUNK SHOPS” and tells me “Michael deserves the same opportunity you had to become a successful distributor.” I tell him. Yeah he is right and that him being successful is going to destroy me. He tells me I am a good salesman and that I can build it agian but this time make sure your DM does his job. I tell him I am “but I have a large inventory and a new truck. How am I going to make it with the bills I have. He tells me I will manage. Then he tells me he has been authorized to give me 3 MB4725 for my trouble. I told him I could buy four in one month with the over $2000 a week in TP I was being forced to give up before I give up more customers. He tells me well you can take the boxes and surrender the shops or not take the boxes and surrender the shops either way Matco was going to give him more of my shops.

  So, I gave him every 2nd and 3rd shift shop I had. My thinking was if this guy wanted my success he was going to have to work the same way I did to get it. So Mike ends up with over 450 customers to call on. I am reduced to 350 and a lot of what I was given were shops that Bud Cook didn’t want to call on. Yeah I can say that too because I have Matco route sheets to prove it.

  One of the last things I asked Rick to do was when I found new shops that I would be allowed to call on them. He told me he wasn’t my DM and he thought that my new DM Anthony Kramer (who was a previous Snap-On distributor and had been in my District as a Distributor for less than a year) could help me establish new shops on my route list.

  So within two or three months of surrendering shops I have two brand new shops opening up on a street where Bud Cook and myself overlap on Moberly Lane in Bentonville. I call and ask Anthony about a month before they actually open if I can call on them and he says to get him an address when they open with the name of the shop and customer count and he will add them to my route list.

  So I swing by on Wednesday, the day I service that area , and they inform me they already have a Matco distributor and he came by the day before. So I call Anthony and ask him if he gave the shops to Bud Cook and he tells me “No”. I remind him that he told me I could call on them and he tells me to call Bud.

  So I call Bud Cook and ask him if he is calling on the new shops. He tells me “No. I gave those shops to Michael Johnson.” I say “Okay” and I call Anthony back. I ask Anthony “Since when do distributors assign shops to other distributors?” Anthony tells me “They can’t” and I tell Anthony “Then why did Bud tell me he gave the shops to Michael Johnson?” He tells me “He can’t do that.” I tell him “That’s your job. Right?” and he says “Yes”. So we hang up with the understanding that I will be calling on those shops. Then I get a call from Anthony telling me that “things are going to stay the way they are.” I can’t believe it.

  So I don’t give up I tell him I need to talk to him. He comes to my house and tallks with me and my wife. I tell him that is wrong to let a distributor call on shops when he doesn’t have any shops on that street already. Not to mention the fact that I put him in business and he already has more head count than I do. Anthony once again tells me those shops are mine and that I am right and this should never have happened.

  Two days later Anthony tells me that this decision is not his and that “It is out of my hands.”

  Over the course of the next two years I will lose a large percent of my customers due to an ailing economy. I will have multiple shops close and work reduction in every shop I have. Hardly no new businesses will open doors and many will open and close within a years time.

  Sometime in the Spring of 2009 I will tell Anthony I need a route resurvey done because I do not have anywhere near the minimum a new distributor has to start a new franchise. He tells me he is very busy but can get it done around the fall.

  In Nov. 2009 I will call Anthony and plead with him that I am fixing to lose an Important dealership who is closing their doors forever Bob Maloney Ford and that it is imperative that my route be resurveyed. I am told once again that it is the Holidays and in the New Year it will happen.

  Then in January of 2010 Anthony sends me an email stating I am at a YTD purchase average of $1,608.02 and that I am not at 80% of the National average. It also states that “Our end-user customers expect and deserve Matco products from their Matco Tools Distributor. Since I didn’t find this email until after I was terminated because Anthony knows I have never communicated by email. I ask you why would a DM who’s job is supposed to be supporting distributors not at least call me? Is it because I had already asked once and begged another time in the same year for a resurvey?

  So Anthony said resurvey in the new year. It never happened!

  On July 12, 2010 I get “THE LETTER” stating I have 90 days to cure a violation of my purchase average. Not being at 80% of the National Average. If I do not cure within 90 days Matco has good cause to separate. If I repeat same violation within a year Matco can terminate my franchise.

  As soon as I get the letter I come home and start raising hell with Tim. I told him that it was pretty shitty that He would separate me from Matco after I had been begging for a resurvey of my route Anthony said he would perform. I also told him that I had not received one shop added to my route list since he ruined my business in 2006.

  I felt like I was getting nowhere so I started calling corporate and gathering route list to prove I had a low head count to corporate.

  Thats when I received a letter from Anthony stating he had performed a survey of my route and found I was only servicing 67% of my of 328 customers. A totally fraudulent survey. There were shops on the survey that had not been open for over 9 months, there were shops I never heard of, there were shops that he asked me to call on but never added them to my route list. There were shops with inflated numbers.

  Again, I RAISE HELL. I try to talk with Tom Willis and Ernie Lauber but I am not getting any returned phone calls with messages I leave.

  Then, on July 28, 2010 I get a call from Anthony. He has good news and wants to meet me the next day. We set up a meeting at McDonalds because when he lied to my wife and I over those two shops on Moberly Lane my wife told him to never set foot on our property again.

  At the meeting he hands me a route list to sign which says I will have 405 customers to call on. I am overjoyed! I felt someone at Matco had heard of the fraud and made it right. I ask Anthony “Why did it have to come to this for them to take care of me.” He told me “I have more freedom than I did in the past and I deserved this opportunity.

  So I go right to work. I take a purchase average of 620 per week off the false survey performed on July 26, 2010 and turn it into a 1,472 per week purchase average by the end of the year. I was above the 13 wk National Purchase average at the end of the year.

  Yes, I did take three weeks off at the end of the year. One Thanksgiving week and Two Christmas into New Years. I have two kids who were 10 and 11 who were at home as well. The weather would not be kind in the new year having over two weeks of snow days in which I would have to take care of my kids because my wife has worked full time every since Tim cut my route in 06.

  On February 11, 2011 I would receive a conference call from Tim Novak with Anthony Kramer in attendance where Tim informed me that I was no longer a Matco Distributor. When I asked why he told me I had gone back to doing what I did before. I asked specifically and he told me I was not at 80% of the National Average. I told him what about the four feet of snow in my driveway. He told me its too late. I asked if I could start another route somewhere else where their wasn’t a distributor. He told me “I don’t care what you do you won’t be doing it with Matco.” I asked him what about moving to Kansas and selling tools for Matco their? He said “I don’t care what you do you won’t be doing it with Matco.” I asked him if I could at least service my customers till Matco found a replacement. Again he said “I don’t care what you do you won’t be doing it with Matco.”

  What really blew me away was sometime in late November 2010, after my cure period Anthony shows up out of the blue on my truck. I ask him “Oh No! What did I do now?” Anthony proceeds to tell that I am “doing great”. I ask him what about the letter and he tells me “forget the letter ever existed” “your doing great” “just keep doing what you been doing.” I ask him specifically about the one year clause in the letter and he tells me if anything is going to happen he will contact me first. Just like he always did he lied again. Noone ever called and asked if I had a Death in the family. Noone asked if I was sick. Noone called to tell me what a terrible distributor I am.

  Matco didn’t do a damn thing to help me and lied to me every chance they got.

  Did I mention again that Anthony Kramer and Tim Novak hired Robert Demers a long time Snap-On distributor who won a Harley Davidson and a BMW Mini-Cooper for his sales excellence with Snap-On to come on board with Matco as a District Manager in San Antonio Texas less than 6 months after he filed bankruptcy in Arkansas.

  Did I mention Bob told me personally that he hated being a Manager for Snap-On for the year he did it and he told me he would never do that agin.

  Did I mention that Bob was made a Distributor a few months after I received my Separation letter from Matco?

  Guess where Bob assumed his route where two failed distributors had ran a franchise?

  Yes. Bob is back in his home town in Michael Johnson’s old route.

  Please!!!!! Do yourself a favor! About face and run like hell! Franchising is a scam!!! The majority of franchisors are SCAMS!

• Does anyone realize why it is hard to fight these franchisors?

  It is because everyone is bought off. From franchisors to attorneys to politicians to the media franchising is protected. The IFA was, originally, an organization to protect franchising which included FRANCHISEES. But it is now an organization which has BANDED together all the people who are PROFITING off of franchising into a force that can not be reckoned with.

  The ONLY way we as SCREWED franchisees can get change to happen in franchising is to BAND together!

  A good start at change would be the IFA Legal Symposium May 20-22 in Washington D,C.

  If all of us unhappy franchisees were to show up and voice our opinion at this convention people would take notice. But the facts are we are doing what our government trained us to do. Be a WORKING America. It is hard for any of us to represent ourselves at ANY of these meetings where people are grouping together to decide how to screw the next round of franchisees USING our legal system to do it. That, my friends, is exactly what will be taking place on May 20-22 in Washington D.C.

  Want to educate yourself further go to this 16 page brochure that is found on the IFA’s web site.

  http://www.franchise.org/uploadedFiles/LegalSymposium2012_web%204-16-12.pdf

  Learn that on May 21, 2012 these attendees of the Legal Symposium will be learning all about how to deal with us pesky franchisees.

  It says franchisees are even invited. All you have to do is come up with $1475 to cover your non-membership of the IFA. A room rate of $306 a night (Standard) and a $50.00 registration fee. I see a lot of franchisees going to this convention DON’T YOU?

• Another way to fight the IFA and make them hold franchisors responsible is support of my petition. Please read the petition and if you support my cause for holding the IFA responsible for its franchisor members actions please sign and share. The link is here:

  http://www.change.org/petitions/veterans-deserve-success-not-matco-tools-franchise-failure

• It STILL amazes me………………..

  I get phone calls and emails every week,

  Matco DBRs that have been screwed – asking me what to do……….

  YET, they haven’t SIGNED THE PETITION!
  http://www.change.org/petitions/veterans-deserve-success-not-matco-tools-franchise-failure

  And, I got accused of not “having what it takes” to run a route,
  YET, the boys that have been screwed over are asking ME what to do

  Seriously, a little respect for the folks that ARE standing up, voicing an opinion

  Without THIS page, Todd’s petition, etc. – the Churn n Burn would perpetuate eternally…………………

  STAND UP PEOPLE! Spread the word, STOP the abuse!

• Life is too short and Matco should NOT be treating people this badly……….

  Hi Debbie,
  I received your e-mail while I was in the process of being terminated by MATCO,after being a distributor for 40 years. Over that time period I had accumulated about $250,000 in inventory. In 2009, at the age of 70, I realized I had better start reducing it. Of course, when I did, I didn’t restock my sales and my purchase went down significantly, and the threats began. To make a long story short, I held them off for 3 years, but they cut me off even though I never signed any contract, or agreement.
  Thank GOD, I , by that time had sold all but $20.000, which they agreed to give me credit for about $8.000 of select items, if I returned them. I did what I was instruced to do, and they approved about $3,150 of that, and then took $461.18 special order handling fee, and then to add insult to injury, They took another $575 claiming there was no invoice enclosed in the cartons.
  There was nothing I could do once they had possession of the returns. I am still selling as an independent jobber, while liquidating the rest of my inventory.
  I just want to warn all MATCO dealers, the company has been hireing ex SNAP-ON management and they only care about the bottom line. All dealers should ask for and read,(with a lawyer), ” TERMS AND CONDITIONS OF APPOINTMENT & AREA OF PRIMARY RESPONSIBILITY” , their FRANCHISE AGREEMENT, and ask to see ” SETTLEMENT & GENERAL RELEASE AGREEMENT.
  If you need any other information, feel free to contact me. Good luck Mike

• Yet the IFA whom Matco and almost every other American Franchisor is a member of refuses to hold these crooks liable for their inappropriate actions. I bet Matco had NO interest in helping this franchisee SELL his successful business either. I bet since this franchisee had a separate agreement from the new franchisees who sign they will take his larger territory split it up and have more than one route to churn MORE franchisees and make MORE money screwing the people they claim to be making successful. I am sure at the Legal Symposium held by the IFA on May 20 will bring more opportunity for franchisors to get together to come up with a new wave of obstacles and contractual obligations to make sure noone lets the cat out of the bag on franchising.

• After reading Debbie’s post about the man who had been on the road for 40+ years and Matco still gave him the run-a-round on his returns it should be OBVIOUS to everyone that Matco doesn’t care one bit about their DBR’s ! (even the lifers)

  Any DBR’s out there on the road in Matco’s crosshairs I would suggest this………..DO NOT RETURN ANY INVENTORY…………..It will only cost you in the end. Sell it at cost just to get rid of it. You will be better off, trust me.

  I would also suggest you hold on to any open accounts and collect them yourself if possible. The “fresh fish” that Matco puts on the road doesn’t have the time to collect your money. He/she is too busy trying to build their own TP accounts.

  Remember, when Pam from the credit dept. starts calling asking when you are going to do your returns it is a signal for you to develop YOUR game plan on YOUR terms. Your inventory is the only Ace you are holding !

• i hate it for mike but he is not the first nor the last to be treated that way. buyers beware how your employer treats people that are being eliminated from the company. how they treat them is exactly how you will be treated when your turn comes.
  i kept all of my inventory because of the way that mike was done. there was a dbr that had just got out of his own choosing and matco spanked his ass good on his inventory.
  whats really strange is that not one time has matco called me and said that they made a mistake on my bill, good or bad, but i have had to call them numerous times for charges that werent correct. some worth thousands of dollars. how come they never could make one in my favor, not once. they catch all of them. its just the ones to their benefit that they miss. doesnt that seem odd.
  i get a statement every month that they charge me for something else that i have already paid and have receipts for from them but they dont see them i guess.
  thats okay, jerry will help them see them.
  matcos name wont be worth a damn when them fools there now get through with it. i dont see how some of them can sleep at night with the way they treat people.

  matco, its okay, your turn is coming. just take like a big boy just like you did us, except that you have worked hard to deserve what you are going to get.

• So the IFA does not profit?
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  Symposium 8 – Strategies for Penetrating the US Market for Overseas Franchisors

  Shouldn’t that Symposium be titled “How to support franchisors in their efforts to steal our soldiers active duty pay.” CHURN and BURN!

• Has ANY Matco franchisee EVER seen the OPERATIONS MANUAL for Matco?

  Why would the IFA have a legal symposium over something that Matco NEVER shows to its francisees?

  Whats in that “Operations Manual” that the IFA and Matco don’t want us to see?

• People may think I am ranting and that I just hate Matco and I am upset with Matco. Well your RIGHT! Matco is a company with unethical and immoral business practices who operates their fraudulent company under an umbrella of protection. An umbrella which takes away the right for a UNITED STATES citizen to have his day in court for the crimes imposed on him by a business associate. Even if you want to complain about it YOU CAN’T! Try to file a complaint through the BBB (Better Business Bureau). YOU CAN’T!!!

  Why not? Isn’t that what their there for?

  Check out ripoffreport.com and see the many complaints against the BBB.

  The BBB and the IFA are similar in how we view these organizations as government organizations who look out for the American people but as we are learning these are just organizations who “Profit” and “Perpetuate” criminal behavior because they PROFIT for it.

• Posted by Justanumber on Jim Lagers site, pretty much the same with Matco except for the support issues and brand name strength…

  Just a number on May 20th, 2012 8:20 am
  This is my input about snap on me being a dealer…..
  Goods:
  The products are good and hold up well for the most part.
  The brand name is strong.
  The support is probably better then what you may get driving the other trucks.
  You will make an average living if you are newer into this job.
  Bads:
  You will work more then 60 hours a week.
  You will ave an endless amount of cardboard and packing paper.
  You will be a bill collector.
  You will be on and off credit hold.
  You will have little time or the money to take any days off.
  You will get pressure from managers to keep buying tools.
  You will be charged a very high interest rate on your truck and inventory loan when you get started.
  You will never really own your route like they say you do. Snap on has the first right of refusal on the sale of your franchise.
  You will be forced to deal with non paying customers.
  Your head count of customers will always be less then it should be.
  You will be forced to sign up in programs as a new dealer you may not like.
  You will never fully understand how to manage your statements.
  You will have tools show up at your house you don’t remember ordering.
  You will have to buy merchandise to raffle off just to get your customers to pay you on time.
  You will always have an asset manager telling you that your retaining too much money.
  You can never sell any tools to any person outside your list of calls. Even if that person happens to jump in your truck from the street.
  You can never have more then 5 routes at once.
  You can’t hire anyone to help you in your truck unless that person is approved through snap on management.
  You never always get the best deal when a product goes on sale.
  Your management sales team will always lie to you if they can get you to buy more tools.
  You will have to spend many extra hours every week checking your tool bill making sure there something there that shouldn’t be.
  You will wait months for a new tool return credit.
  You will spend a lot of time fixing hand ratchets, replacing screw driver blades and replacing bits on sockets. You do that for no compensation from snap on.
  You will hear every story in the book from customers when they have no money to pay for there tool bill.
  You will be hounded from snap on credit when something needs to be repossessed.
  You are not allowed to make a profit on anything you reposses if the customer still owed a balance.
  You will eat shipping cost on repairs that are still under warranty.
  You will have back order problems.
  You will have your garage stuffed with many tool boxes you don’t need.
  You will see many of the same items on sale all the time.
  There is much more to write but you get the point. Just remember one thing. You as a snap on dealer are never an independent business person. You are snap on’s runner and they control you. They put you in business and can take you out at any time. So anyone reading this thinking of becoming a snap on dealer. I would look another direction.

• you are dead on skippy there my friend except that you kept misspelling matco on several different occasions.

• If you are thinking of a Matco franchise please read all the above posts. Then look at the last three F.D.D. posted on this web site. Go to the pages which prove their is NO GROWTH in this company for the last 6 years. Then ask yourself, If Matco is such a great company why do they have to break rules like advertise their franchise on employee web sites? Why does the Vice President of Matco Tools (Now President) have to manufacture recruitment videos with LIES in them to entice more people to invest in his FRAUDULENT company? Why is Matco being sued for SBA Loan fraud? Why is Matco’s new F.D.D. agreement committing the franchisee to perform labor on the behalf of Matco and NOT be paid for PERFORMED labor? Why has Matco been allowed to do it for years and not be punished?

• can anyone give me some pointers matco sent me my walking papers 10 min later the took tnem back

• josh
  was it a warning letter or the actual termination letter meaning you are done good bye-see ya-adios?

  In either case they want you gone so contact Jerry Marks

  Marks/Klein
  Redbank NJ
  732-747-7100

• got the warning letter one week ago this was the termination letter in a email then my dm took it back by a email they are not giving me any time to fix anything

• Josh,

  Don’t have a false sense of security. you HAVE trouble my friend!

  PLEASE

  contact an attorney, ASAP!

• Josh
  Keep copies of everything, if they tried to recall the email/letter then they screwed up somewhere and are trying to cover their sorry asses…

• TO THIS DAY, I receive emails and phone calls from people that were suckered into the tool biz………………..

  Hi my name is miguel I became a cornwell dealer at the beggaing of the year an I just gave up.I worked 60+ a week for $500.00.I would like to find out how we can keep these monsters from eating other people savings.please give me any advice you have.

• MATCO is the worst offenders!

  They WILL be held accountable for their fraudulent actions in court!

  Matco has tried, unsuccessfully, to STOP the truth from getting out.

  PEOPLE are reading the negative press, they are learning the TRUTH!

  This site alone has nearly 5000 comments, multiple sites across the net have comments…………….

  Where there is smoke – there IS FIRE……………..

  consider yourself warned!!

• This is an interesting website dedicated to the Franchisee

  http://www.wikidfranchise.org/20111115-td-bank

• OK….Matco sucks…we all know that………Are there no damn more than 7 or 8 of you people? 4000 commenst from the same John Brown 7 or 8 or 10 or 12 of you people? Do you have a life outside this website? Are you working now? Holy God get a life!

• One more thing….I am sick and tired of you guys talking about “court”. For god sakes take them to court! Get it over with! WIN by God! I bet the reason it is not in court yet is because there is no money to pay your lawyers! Do it! Matco sucks! But you guys are not smart enough to really know why! You think they suck because YOU FAILED! Thats not it at all! For crying out loud do your thing and get it over with! What are you waiting for????????????????

• Raptoman, yea there are a bunch of us and there are some who dosen’t want their name out there and they’re are some who dosen’t give a shit.Thanks for agreeing that Matco Sucks, we all know that and so do some of the other tool businessess, yes I can’t wait to get them in court and get this over with, I got a few things i will let them know when the day comes. Let us know when you need help and we will not let you down, because the day is coming, soon.

  WE DIDN’T FAIL, MATCO’S SYSTEM OF DOING BUSINESS IS A FAILURE. IT IS AN ILLEGAL SCAM AND THEY GOT CAUGHT. IT WAS ONLY A MATTER OF TIME.

• The fact of the matter is………….. SEVERAL suits have already been settled.

  The fact of the matter is…………….. there are literally HUNDREDS of wronged distributors fighting Matco.

  The fact of the matter is………………… it is difficult to put your name out there, I know. Even the detractors – ie ‘raptorman’ won’t sign his name

  So, ‘raptorman’s little hissy fit just tells me, The Matco Distributor Association has gotten under someone’s skin,,,,,,,,,,,,,,,,, hmm wonder why??

• http://www.wikidfranchise.org/20111115-td-bank

  really just says it all………

• Raptorman is correct! We should be like all the other Matco victims of fraud, lies and deceit and just move on with our lives filing bankruptcy, foreclosing on our investments and finding those hourly jobs we used to have so we can pay Matco off or lose our credibility.

  Any of you involved with any attorney going against Matco ever wonder why your name is not mentioned in the 2012 F.D.D as franchisee pursuing Matco for their fraud? Is it because attorneys don’t file lawsuits so that they can settle out of court and not have those previous fraudulent activities show up on F.D.D.s?

  Why are we forced to settle out of court? Is it because the IFA has created an umbrella of protection for franchisors which keeps franchisees from due process with the wording of our F.D.D. agreements which are all equally similar for its members?

  Why are there hardly any records of Matco being sued for fraud by franchisees?

  Is it because all disputes settled by Matco come with a GAG clause in which upon settlement that figures of settlements can not be released and permission to talk about your past experience with their fraudulent company would have to be granted by the fraudulent company?

  Here in the United States we are taught that America stands for freedom and that mother liberty will protect us from those who are found to do wrong to others. We go and defend others who can not defend themselves in the name of justice. Since when does the United States allow Organizations to protect its members at the expense of our American rights.

  I don’t give a damn what I signed with Matco!

  Matco allowed me to buy out a distributor who was not in compliance with Matco contractual obligations and was only working his route 3 days a week!

  Matco gave me a route with less than 325 viable customers!

  Matco stole my customers after I grew my route and made it successful!

  Matco threatened me with the loss of my franchise if I didn’t surrender them!

  Matco came to me twice within a months time to tell me I did not give up enough customers the first time and that they needed to take more of my successful route!

  Matco Management lied to me about adding shops to my route list after I surrender shops!

  Matco promised me a route resurvey when I asked for one in the Spring of 2009 and still promised it would be done two other times leading up to the separation letter I received in July of 2010.

  After receiving my separation letter and voicing my opinion about being promised a route resurvey for almost 1 and 1/2 years Matco completed a FALSE SURVEY of my route claiming I had twice as many customers than what I really I had.

  After calling corporate and being very vocal about the false survey Matco gave me a NEW route with 405 customers on it.

  In less than 5 months I would more than triple my purchase average and once again put myself in a position to be successful. My purchase average at the end of 2010 week 54 would be $100 dollars better than the National Average.

  Matco Regional Manager called me on a Friday with 4 ft. of snow in my drive to inform me that I was not going to be with Matco any longer. I told him that I had received a lot of snow in the previous last two weeks When I asked him if their was anything I could do to keep my franchise his response was “I don’t care what you do you won’t be doing it with Matco.” When I asked him if I could move to a different location where there was no Matco Franchisee he said “I don’t care what you do you won’t be doing it with Matco.” When I asked if I could move to a different region where my wife is from he said “I don’t care what you do you won’t be doing it with Matco.” The Regional Manager also lead me to believe I was terminated for reasons that with Arkansas law I should have been given 10 days to cure a second violation.

  When I pointed out that Arkansas law says I should have been given 10 days to cure then they told me that I never cured. Even though my purchase average was more than 80% of the National Average which is why they had given me a separation letter.

  Did I mention that I drove all the way to Stow, Ohio from Northwest Arkansas to amicably discuss the false termination of my franchise? I met Ernie Lauber VP and Mike Swanson at a Bob Evans because Tom Willis would not allow me to utilize that open door policy he said he had when I went through training in Stow, OH and meet him at Matco Headquarters. Someone might think they wanted a public place to meet because their fraudulent termination of my franchise might lead a not so stable person like myself to act out on anger. Or maybe it was because they wanted witnesses in case I acted inappropriately when they presented to me what they considered an amicable discussion.

• Well, another night of dreaming about Matco!

  It has been almost a year and a half since I was falsely terminated. It has been about 6 years since Matco ruined my franchise by stealing my customers and reducing my route to below the minimum of 325 while threatening me with the loss of my franchise if I didn’t comply.

  Why is it that I am still dwelling on Matco!

  Is it because I have issues?

  Is it because when something this dramatic happens to you it is hard to move on without closure?

  Is it because you know that the same people are doing the same things to others and as an American you will not stand for it?

  Or is it because as a franchisee of Matco Tools I made a commitment to not be like the other franchisees of a Matco franchise and stay in business and service my customers for the long haul?

  For what ever reason! Thank You Matco for nights I can’t sleep! Dreams of horrendous acts which I am not capable of carrying out!

  Why is it I keep seeing a mushroom cloud over Stow, OH and the skeletal remains of upper management in the rubble?

  This is not who I am or who I choose to be! Why is it that Matco still chooses to toy with me and not settle my VERY LEGITIMATE issues with the management team of Matco.

  I have only been pointing out these issues since day one of receiving my separation letter and all Matco has ever done is IGNORE me like I don’t exist!

  Tom Willis is a liar! No open door policy!

  Tim Gilmore is a liar! False surveys! False recruitment videos!

  Ernie Lauber is a liar! Telling me I never cured the violations of my separation agreement after I pointed out that Arkansas franchise law says that they should have given me 10 days to cure a second violation of the same offense.

  Tim Novak is the biggest liar of them all telling me “Yes” I could lose my franchise if I didn’t surrender MY established shops which were approved by my DM (Matco) whom he terminated right before he sent in his Texas DM thugs!

  Anthony Kramer is a liar on MULTIPLE LEVELS! He lied to me about receiving new shop locations, he lied to me about resurveying my route, he lied to me telling me I had nothing to worry about with the separation letter and that if there was a problem in the future it would be a situation where I knew what was going on before it happened. He created a false survey of my route to make me look incompetent to management! He sold another route to Steve Chung without doing a survey and making sure that the majority of Mr. Chung’s customers were not already being serviced by a Matco distributor.

  Why anyone would join a Matco franchise is beyond me!

  I know there are many people out there who are smart and pay their bills but PLEASE!!! do not let Matco sucker you in to their web of deceit!

  Their company only cares about ONE thing! Making money at their investors expense! And TAX PAYER expense!

  See that the IFA is working hard to give these crooks more tax incentives and tax payer backed loans (SBA Loans) for its investors. You only need to go to their own website to see that they profit through training of how to screw franchisees and keep them from obtaining their rights to due diligence.

  Matco IS NOT a viable option for an investment. You only need to read and understand FULLY the legal language of the F.D.D. they want you to sign to realize that Matco is a fraudulent company and what I am stating is true!!!