MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• Hi All
  I am currently looking at a Matco franchise. I guess I am glad I looked here as this does not make that decision look so smart. Are there any Matco sucess stories out there? As franchise owners you would know others and their stories.. The one out of ten Matco Class Graduates still in business figure is frightening. Is it accurate? Please try to be factual. Whats your advice.

• The 1 out of 10 is very FACTUAL!

  In fact I have all their names:

  Todd Peterson, ARKANSAS
  Brian Campbell, Michigan
  John Corder, Texas
  Andy Langer, Minnesota
  Ken Latuska, Minnesota
  Deign Lory, New York
  Brad Smith, Texas
  Donald Queen (aka Junior), Washington
  Troy Rexin, Oregon

  All the above have left the Matco system for whatever reason.

  The only one left out of my graduation class is Mike Klein from Wisconsin.

  So, if you are really looking at being a Matco franchisee lets take a deeper look.

  Your going into debt for at least 7 years of WEEKLY payments. Unless you have the money to buy the start-up inventory or the $25000 that Matco requires to buy tools while your putting money on the street. I just showed you that out of 10 Matco trainees only two lasted 6 years and only one made it past 6 1/2 years. You tell me if Matco is a GOOD opportunity to succeed in your own franchise?

  When I started my franchise there were only 10 distributors in my district including me. Out of 10 only 4 are left. Two of the 4 have a different agreement than what I signed.

  You tell me if Matco is a viable option for anyone to invest in?

  Here is a list off the top of my head of previous Matco Distributors whom I know have left the Matco franchise system since 2004: Jerred Dean, Ken Rathburn, Brian Sloan, Gary Duncan, Kevin McDonald, Gary Hagar, Kevin Hodges, Gerald Hodges, Joe Duran, Michael Johnson, Brad French, Richard Richardson, Jerry Bradley, Brent Freeman, Randy Reinking, Steve Chunn, Timothy Hodge, Malcolm Wells, Jimmie Wise, James Bunch and Todd Peterson. I know of at least 3 others but can’t remember their names. Total tally of 24.

  In the 2012 F.D.D. there are only 17 franchisees listed in Arkansas. Out of the 17 listed only 7 have been in business more than 5 years. Of the 7 at least 3 have territorial agreements versus a list of calls. 5 of the 17 had not been in business for a year.

  Some of the statistics in the F.D.D. are false as I know for a fact that Bob Demers took over for Richard Richardson shortly after I received my separation letter from Matco in July of 2010. I can truthfully say that Robert (Bob) Demers started running a Matco truck on or before September of 2010. Why Richard Richardson is still listed as a Matco franchise distributor on the 1/01/2011 F.D.D. is beyond me but the phone number listed for Richard Richardson is Bob Demers number 479 263-????

  Why does Matco lie in their F.D.D.’s?

  You tell me if Matco is a VIABLE opportunity to succeed as a franchisee?

• Richard
  The Matco Tools franchise system and the horrendous contract you must sign is designed so you WILL fail and grants Matco full authority to terminate you for any reason any time they see fit. It does not matter how hard you work, how successful you are in your franchise or how loyal you are to Matco Tools. When they decide it is more profitable to bring in a fresh “checkbook” than to keep you as a long term Franchisee, you are gone in a New York minute. These are the hard undeniable facts about Matco Tools.
  Also when you are going through the interview process with the managers from Matco keep in mind these guys are professional liars and manipulators trained to make you feel all warm and fuzzy about your prospects in the business.
  Go ask ten Franchise attorneys that represent only Franchisees their opinion on franchising in general and specifically ask if there are any “Franchisee friendly” businesses left in America…the response is shocking

• Matco IS NOT a viable opportunity,,,,,,,,,, it is simply a scam……..

  Shortly, and I do mean SHORTLY after I became a distributor (LESS than ONE YEAR) my district manager, Doug Heersink had a district meeting.

  At this meeting, the Regional Manager-Tim Novak attended and proceeded to criticize and belittle the distributors………………. it infuriated me!

  I sent an email to Doug Heersink and my concerns were dismissed………

  it read:
  Hi Doug,

  Now, what happen to all the rest?

  Paul Hunter is no longer a distributor? Not on the list.

  Isaac is still on the list and we know that he has quit.

  What happened to Carlos Mejia? I’m not buying he just ‘gave up’ after 4 months.

  Nathan Rains – I don’t remember hearing about his departure.

  Jeff VanSickle? – terminated??

  Gary Huff? – terminated??

  Don Roberts -?

  Why do we never hear about the circumstances surrounding a distributors departure? WHY do SO MANY leave?? This is MORE than HALF our district!

  Not very encouraging seeing such a huge turnover :( I would have thought Tim Novak would have had a more positive take on numbers. Especially considering distributors are dropping like flies. Instead of telling us “we are not at the national average” , “what are we doing about it” – maybe a little more encouragement like, “congratulations for working hard and sticking with it”. “happy you’re here, let’s keep making those sales”. I thought it had a very ‘sales-y’ sway, almost like “Sandler Training” – classic sales training. Everybody spent a lot of money to be a distributor, everybody knows they are Selling tools. I walked IN very positive and happy with my results. I walked OUT a little pissed off. Telling a ‘sales’ person they are not doing a good enough job selling, does not motivate.

  SOOOOOOOOO, Richard – THIS IS FACTUAL, taken from an actual email to MY district manager………………….

  The distributors continued to drop –

• Another thing to remember Richard is District and Regional Managers get BONUSES for bringing in new franchisees. Why do franchisors give managers BONUSES for lining up new victims for their CHURN and BURN franchise opportunities? Because they PROFIT from the operation!

  Let’s look at the number of Matco franchisees from 2006 through 2012.

  The number HAS NOT GROWN!

  Instead it has declined!

  Now lets look at the number of franchisees that have lost their franchise for whatever reason on an annual basis. That number has consistently been over 200 per year for quite some time.

  2006- 179 COOR (Ceased Operations Other Reasons) + 2 NR (Non Renewals) + 24 Term (Terminations)= 205 who left the system

  2007- 187 COOR + 8 NR + 35 TERM = 230 who left the system

  2008- 200 COOR + 7 NR +42 TERM = 249 who left the system

  2009- 152 COOR + 3 NR +41 TERM = 196 who left the system

  2010- 179 COOR + 2 NR +51 TERM = 232 who left the system

  2011- 153 COOR + 3 NR +49 TERM = 205 who left the system

  What does it mean to Cease Operations Other Reasons or COOR? These are the franchisees that HIGHLY trained District Managers convince that it is their fault their business has failed and that they are the reason they are broke and get them to sign the EXIT Strategy agreement. This exit strategy agreement insures that you CAN NOT discuss your franchise experience WITHOUT written consent from Matco and further states that you AGREE that Matco is not the reason for your franchise failure.

  In some cases I believe that Matco may have “NO FAULT” in the franchisee failure but all 1,050 cases in the last 6 years? I believe maybe 50 were completely at fault for their failures but the number is definitely SMALL.

  You have to remember Matco is choosing you to be a franchisee because you have shown that you are RESPONSIBLE with your finances, you have EQUITY in something and you have EXCELLENT credit. Typically, these types of people will invest more money when they are told that by their District Manager that it takes time to succeed. This puts you further in debt and even MORE devastated when your District Manager blames YOU for your franchise not succeeding.

• Richard writes: “I am currently looking at a Matco franchise. I guess I am glad I looked here as this does not make that decision look so smart. Are there any Matco sucess stories out there? As franchise owners you would know others and their stories.. The one out of ten Matco Class Graduates still in business figure is frightening. Is it accurate? Please try to be factual. Whats your advice.”

  Richard:

  Congratulations on doing your due diligence and asking good questions.

  Here’s a fact: The Small Business Administration (SBA) releases the default rate of franchisees who qualified for SBA guaranteed loans. It’s a fair assumption that this group is financially stronger, as a group, than typical franchisees because they met the bank’s and SBA’s criteria, and also had access to SBA-backed capital. 37% of those who borrowed through the SBA program were never able to pay back their loans. Keep in mind that many of these borrowers probably secured the loan with their home and/or other assets, so they were highly motivated to succeed.

  It’s fair to assume that the actual failure rates of specific franchises are much higher than their SBA default rates. For example, Curves posts a 25% SBA default rate, however we know that Curves lost 35% of its franchises in the past 3 years and more than 50% in the past 5 years.

  Read the report put together from Marks & Klein here:
  http://www.unhappyfranchisee.com/matco-tools-franchise-distributor-churning/

  “During the three year period from 1/1/08 to 12/31/10, seven hundred fifteen (715) Distributors, forty nine percent (49%) of the total number of MATCO Tools Distributorships open at any time during the period, left the MATCO system.

  “Of that 715, only fifty (50) transferred their MATCO Tools business to third party franchisees. Of the remaining six hundred and sixty five (665) Distributors who left the MATCO Tools system, five hundred thirty one (531) closed their Distributorships, and one hundred thirty four (134) had their distributorships terminated.

  “If a MATCO Tools distributor desired to exit the system during this three year period, and hoped to sell its business through a MATCO approved transfer, that franchisee had less than a seven percent (7%) chance of success. Statistically speaking, such a low success rate indicates that the MATCO Tools businesses run by distributors who were leaving the MATCO system were so unprofitable as to be unmarketable.”

  Good luck.

• In the above statement I said:

  Let’s look at the number of Matco franchisees from 2006 through 2012.

  The number HAS NOT GROWN!

  Instead it has declined!

  I apologize for forgetting to input the data found in the F.D.D.’s on this website and they are as follows:

  2006- 1490
  2007- 1479
  2008- 1443
  2009- 1462
  2010- 1418
  2011- 1423

  The number next to the year represents the number of franchisees who own franchises at year end. As you can see they have not grown but decreased.

  Yet in the 2010 video in which Tim Gilmore (now president of Matco Tools) as Vice President of Matco Tools states that Matco “In a down economy franchising is a GREAT! opportunity. In an up economy its even better.”

  I wonder if Mr. Gilmore knew that the number of franchisees had not grown in the last 5 years when he made this false recruitment video which included a false survey as well.

• Why does Mr. Gilmore need to LIE about the success you can have with a Matco franchise? Is it because Matco has an F.D.D. which is 268 pages long and the probably 100% of the people looking at an F.D.D. have NO IDEA what the data within an F.D.D. communicates. After all it is not Matco’s fault they hide their failure as a company in an F.D.D. that makes it hard for even an ATTORNEY to understand. Why doesn’t Matco just tell the truth instead of LYING and BUILDING themselves up to something they are not. Matco IS NOT A GOOD company!!!!! PERIOD!!!!!!!!!!

• So taking the numbers Todd has posted and rounding down to “200 Franchisee’s churned” every year, it is easy to figure the revenue numbers. Lets say “on average” a Franchisee has to come to the table with $100K (some more, some less) of mostly borrowed or second mortgage money. And knowing Matco stuffs them with tons of hardline tools at full list price, a couple toolboxes at full list price, 20-30 airtools, some diagnostics at full boat and misc parts and such. Also knowing that hardline can carry as much as 90% markup to the franchisee, toolboxes 40%-60%, airtools 30%, diagnostics 30%, parts and promo items 30-50% markup to the franchisee.

  Using basic math before costs and EBITDA you can figure close to 50% margin, $100K X 200 Churned Franchisee’s is TWENTY MILLION DOLLARS in annual revenue, just from churning alone…

  It does not take a math wiz to see the more they “CHURN AND BURN” franchisee’s the more they “EARN”

  Even with the few terminated franchisee’s that can make it thru the mandatory Arbitration Process, it is still insanely profitable for the company

  Far more profitable than keeping the franchisee in business long term

• More facts about Matco!

  Matco had 1423 franchisees in routes at the end of 2011.

  But how many routes were available but not filled? Why does Matco choose not to DISCLOSE this number?

  Is it because this number is used to pad their already horrendous statistics?

  I estimate there were at least 380 routes that did not have a franchisee owner at the end of 2011. If you take 1423 and add 300 that makes 1803 routes.

  See how Matco disguises the ir true head count and revolves franchisees in their CHURN and BURN operation.

  If they are so SUCCESSFUL why are there routes that need to be filled?

  Why haven’t they grown any in the last 6 years?

  They can’t blame the economy! The President of Matco Tools has stated that “In a down economy franchising is a GREAT! opportunity.” Surely the President, then Vice President, would not spew lies about an opportunity to “Be your own boss” and “Work for yourself, not by yourself.” to the American people and through Vetfran our American soldiers!

• It seems Matco thinks blocking my router will keep me from posting more comments on this website. I would like to thank the people responsible for making sure this website is open and those who have been harmed by FRAUDULENT companies or FRAUDULENT corporations can still post and voice their opinion.

  Here me LOUD! Here me CLEAR! I AM GOING NOWHERE!!!

  I have made it my personal mission to make EVERYONE aware of how fraudulent Matco Tools is.

  From their lying UPPER management to their OBC club you will be known for what you are THIEVES!

  You steal money from those whom put their trust in you. You promise them help and then send them SEPARATION letters. You give them more customers and see them finally start making money again and then terminate them because they can not operate their multi $100,000 business in inclement weather.

  You are a disgrace to the United States!

  You are a disgrace to the American People!

  You are a disgrace to our soldiers who fight for our freedom!

  Any of this sinking in Matco???????????????????????????????????

  Matco Tools lies in President Gilmores recruitment video!

  Matco Tools management lies to its franchisees!

  Matco Tools sells nonviable routes and then blames the HONEST franchisee for their failure!

  Matco Tools falsely terminates franchisees knowing the only thing they will have to do is mediate or go through arbitration.

  STAY AWAY from MATCO TOOLS!!!

• You see Matco has controlled my computer in the past to help me fix problems with my MDBS software. I hope they don’t feel so threatened by the truthfulness of my comments that they would BLOCK my IP address through my router! Since my router is set with FACTORY settings.

  I wonder if that can be proved?

• Are we able to post today?

• Matco, who has always controlled their franchisees like employees, is controlling them even more in todays F.D.D. making them buy tools strictly from Matco.

  Think your in business for yourself but not by yourself?

  Your in business for Matco and only Matco!

  They don’t care about their franchisees they want to control their franchisees and make them eat the profit margins Matco wants their franchisee to eat. Matco is a corrupt company who preys on Veterans and Americans who have good credit and want to succeed at a different level. The only difference between franchising and employment are you get benefits with an employer and if an employer commits fraud, lies, threatens or falsely terminates you they have to answer to their accusations in a court room with a jury.

• Is Matco playing with fire? Violating an individuals right to voice their opinion through internet media? Why would Matco use a remote access to silence someone who spoke truths about their company? Would Matco stoop that low? Would Matco feel so threatened by the actions they committed to their franchisee that once he started releasing FACTUAL information that they feel he needs to be silenced? Or is Todd Peterson just a paranoid and delusional person who feels everyone is out to get him?

• Learning a lot about the internet and routers this week!

• It seems I am not the only one who has figured out that the FTC and IFA are not organizations who are helping to make franchising fair for the franchisee but to insure that franchisors are PROTECTED from franchisees whom they mistreat!

  http://www.youtube.com/user/VeteransFran…

• Well I guess that didn’t copy correctly try this one!

  http://www.youtube.com/watch?v=3JN8iwrfBEc

• Is there no shame in those who will support Matco at the cost of making their website look foolish and uninformed?

  The website listed below claims Matco is a recession proof franchise. I would like anyone who believes Matco IS NOT recession, as Matco’s own F.D.D. would show, to post a comment on the below website called redhotfranchises.com

  http://www.redhotfranchises.com/franchiseopportunities/franchise-research/recession-proof-auto-care/08/30/2011/comment-page-1/#comment-21040

• It”s funny how Matco is recession proof and not listed in the Hot 100. It is even funnier how the Hot 100 is only the Hot 50.

• franchisedirect.com ranks Snap-On #11 and Matco #78 OUCH!!!

  The word is out Matco.

  The fact Matco is even ranked is proof that franchising as a whole SUCKS!

  The fact that Snap-On is ranked is proof that franchising, as a whole is a SCAM!

  The only reason Matco has been able to secure SBA loans is lies because there is no territory in a Matco F.D.D.

  At least Snap-On does not lie about that on their recruitment website but Snap-On probably won’t tell you before you sign with them that you are going to be shipped freight you don’t request either.
  http://www.franchisedirect.com/top100globalfranchises/rankings/

• Attention all Matco Tools franchisees.

  It is time to make a stand! Let’s flood the FTC (Federal Trade Commission) with complaints about how our franchisor (Matco) is selling fraudulent franchises and CHURNING AND BURNING good people and soldiers to fill their already largely filled pockets. Let’s show Matco that money can be made and the franchisee can make a living if things are not done fraudulently.

  Post your complaint with the FTC today and lets make change happen!

  https://www.ftccomplaintassistant.gov/

• Todd
  Yes that site actually has specific categories dedicated to the Army Navy Marines Air Force etc (Consumer Sentinel Military) link to file complaints against “Business Opportunities/Employment offers-Franchises/Distributorships” and they ask for dollar amounts as well as naming names…

• Thought I would share with everyone today some more FACTUAL information regarding Matco. When you return tools to Matco, after they have convinced you its all your fault your franchise failed and got you to sign an “Exit Strategy” agreement or whether they committed every crime imaginable against their franchisee and then terminates them for “No Reason” you can expect Matco to STEAL your inventory you return to them and not pay you the full amount of what you are due.

  On 4/14/11 I sent to Matco via Fed Ex 51 cartons totaling $66,997.52 of product at cost.

  On 4/22/11 I sent an additional 4 cartons totaling $8,979.31of product at cost.

  The total is $75, 976.83 of cost (Not List) product.

  Matco paid me a total $57,401.72 for that inventory.

  They sent back tools and charged me shipping for an approx. total of $4,000

  $75,976.83-$4,000= $71,976.83

  $71, 976.83-$57,401.72= $14,575.11

  $71,976.83×15% (illegal restocking fee) = $10,796.52

  $14,575.11-$10,796.52= The money Matco stole from my franchise!

  Not to mention there would have been another $9,268.27 stole if I had not sent a letter to Matco stating I was being robbed of my money and demanding that they pay me what they owed me. This money was given a month after my account had been cleared and before I sent the letter Matco had NO INTENTION of paying me anymore. This is just another way Matco STEALS from its franchisees when the relationship is dissolved.

  Stay away from Matco Tools!

• Do not buy a Matco franchise!

  They will use fraud, lies, false documents, theft and false termination to separate you from your F.D.D.

  Matco DOES NOT support our troops and uses our armed services to perpetuate their franchise scam through NHRA popularity.

  Matco President Tim Gilmore lies in recruitment videos to perpetuate the franchise scam he profits from.

  Matco’s rankings are bought and paid for and created to boost popularity of its franchise scam.

  Matco has NOT grown the number of franchisees owning franchises since 2006.

  Matco used false information to obtain SBA loans and is being sued for SBA loan fraud.

  There is no such thing as a territory in a Matco agreement, yet Matco advertises it sells territories.

  With Matco you get a PREDEFINED LOC (List of Calls). In English this means you are going to call on what they give you and ONLY what they give you to make your money and compete with the purchase averages of those OBC members who have REAL Territorial Agreements.

  Stay away from this franchise SCAM!!!

  Matco is a fraudulent company who steals from our soldiers and those who have the sense to pay their bills and are ahead in life.

  Matco will give you a fraudulent route and then blame you for the reason it was not successful.

  If you are able to grow your Matco business and pick up shops approved by your DM (District Manager) your new Regional Manager will FIRE your DM, who had the #1 District in that region and then come to you and other franchisees and tell you you violated your franchise agreement by going outside your LOC and that they need your established customers to put a new Franchisee in business who was promised a route but where Matco can not find any room to put one.

  Stay Away from this Scam!

  YOU HAVE BEEN WARNED!

  I was a Top Distributor my first two years as a Matco distributor and then my new RM stole my customers making my business fail.

  When I asked for a route resurvey and was told twice in 2009 I would get it by my DM, I received a Separation Letter from Matco instead of a Survey.

  When I stated it was not fair to hold me to the purchase average when my DM never even performed the survey he had promised me for almost a year and a half, he produced a “FALSE” survey after the fact stating I was only servicing 67% of my route. The survey was a COMPLETE lie of my route with inflated head counts, closed shops and shops I had never signed into my LOC.

  I then called them out on the “FALSE” survey and three days later they handed me an LOC with 405 customers on it which would bring my purchase average up to meet the 80% of the Matco National Average.

  Because I had not bought hardly any tools in the month of February and I canceled going to EXPO Matco terminated my franchise when I had 4 feet of snow in my driveway and only worked 2 days out of the last 10 days due to snow.

  This is the kind of support and games you can expect to have with Matco.

  Read your F.D.D. Everything I am telling you is true and happened to me!

  Matco is a SCAM!!!!!!!!!!

• Matco Tools SUX!

  See above posts to confirm this statement!

• Did I hear right that there are currently around 40 cases pending at Marks & Klein between ex Matco franchisees, ex Matco District Managers and a handful of Mac franchisees??

  Why is it non of this information is never out in the public or on the FDD’s??

• Good question! Doesn’t someone have an obligation to make sure that this information is disclosed so Veterans and others can make informed decisions about whether Matco is a good opportunity or a fraudulent one?

  Or is there some form of cover up enclosed in the F.D.D. that the IFA members have their franchisors litigate by mediation first and then by binding arbitration, thus the public and our veterans never find out about how fraudulently other franchisees were treated in their Matco franchise?

• Matco Tools needs more fools,
  So they can take their money.
  Get in line,
  You won’t have a dime,
  And this is the reason why.
  Matco is a member of the IFA,
  And that gives them super powers.
  To bend you over,
  Screw you good,
  And blame you once their done.
  So if your foolish,
  And you got some dough,
  Vegas is a better way,
  At least you’ll get free beer,
  As you take it in the rear,
  Have a happy Matco day.

• This Matco franchisee who is a Veteran in Colorado doesn’t seem too comfortable answering some of Matco’s questions. I wonder if he is still in business?

  http://vetfran.matcotools.com/franchise/veterans/

• I had an interesting conversation with him today as well.

• http://www.ladymatco.com
  SEVERAL RECENT additions to the Comments Page are VERY TELLING>>

  WTF said: July 30th, 2012 2:11 am
  I have been a top 200 dist and the times I was in the ranks were the most unfortunate for my bank acct. I am still a dist and I have a large inv with a substantial amt of $ on the street. Things r slow right now so I am not buying much. Then my mgr comes to me about getting out n salvaging what I can. Wow, I didn’t see that coming. Come to find out the dist mgr has to start 2-5 new per yr. Another dist was going to hang it up in our dist, bit changed his mind. Low ams behold 3 days later they have their sights on me. From what I gather they want me out so they can put 3 newbies in my route. When I started it was fun and seemed like family, but now it has become the Snapon ” there’s more out their that can replace u” attitude. One of my Snappy competitors blew his brains out on the interstate not too long ago. I guess now I see why. They want to push all that have grown their area and brand loyalty out, so they can fill it with instant profit that will instantly fail. Leaving us with debt and a no compete clause. If they succeed in what they r trying to do with me their will be many problems heading their way. They r not going to ruin my life n get away with it. Hopefully they r aware now to not eff with me.

  Jack said: July 29th, 2012 2:08 pm
  http://www.mobiletooldealersassociation.com Jim Lager doesn’t think much of Snap On either, In my opinion Snap On isn’t a good choice either, and I’d stay far away from Matco!!

  not a tool guy! said: July 29th, 2012 12:46 pm
  Im not sure what my point is in posting. Im looking into buying a Snap on francise or possibly a Matco. Not sure yet. Im 40 years old and hoping there is something better out there then what im doing. I see thousands of people have made great lifes with these companies. Then I find a website like this and it scares me to death. Ive called several people on my call lists from both companies. Ive had a hard time finding negatives about Snap on. I have found many negatives about Matco. Its hard to stop a dream and I have a big one. Im hoping this is the way to go. Not so sure after reading all of this. Doesn’t anyone have anything possitive to say???

• It is curious to me that my Inbox has seen a substantial increase in mail with questions and comments about the Matco franchise.

  SOME with questions from folks looking at getting into a franchise.

  MOST – horror stories of sad experiences involving owning a Matco Tool franchise.

  And then there have been a FEW with insulting, offensive, and threatening comments. Obviously, somebody’s feathers have been ruffled. Apparently, a FEW think “this” will all go away if they send me nasty mail.

  It won’t……….

  Do a Google search for Matco Tool Franchise……….. ON THE ** FIRST ** RESULTS PAGE……….. right after 6 MATCO sites…………..

  MATCO TOOLS Franchise Complaints : Unhappy Franchisee
  http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/Jun 5, 2012 – MATCO TOOLS Franchise Complaints: Have you had any dealings

• Jack,

  Stay away from Snap On. They will control you the whole process and when you either become bankrupt or profitable without doing it there way they will turn there backs. Dont do it.. You will never have time off and if your married your spouse will be upset that you are always at work making nothing and spending zero time with your family. Go on http://www.mobiletooldealersassociation.com... Read what Snap On, Matco, Mac and Cornwell dealers write. I have personally talked to at least 100 ex dealers that lost everything and have bad credit. Some said they couldn’t even rent an apartment because the credit check came back negative from the tool company..

• Debbie,

  Good to see you are still getting the truth about franchising out there. If you are thinking about buying a tool franchise please reconsider.

  Matco has no problem giving you a non-viable route to start with consisting of customers on your LOC who don’t speak English, don’t have a SSN, don’t need professional tools to do their job and do not even want a Matco distributor.

  When you take their non-viable route and add more shops with the approval of your DM to make your route successful Matco fires your DM and threatens you with the loss of your franchise if you don’t surrender your established customers to put a new franchisee in business.

  I ran into the Matco guy who assumed my route today and he is upset that I am collecting the money owed on my accounts. He seems to think that I am causing him to lose business or taking his money. He said hi to me and when I tried to shake his hand and say hello he would not extend his hand. Not the behavior of an Eagle Scout and Troop leader that I would expect. I wonder how he is going to feel when I start dumping the $70,000 in my cost product that Matco would not take back? He thinks he is hurting now? I have been very patient with this whole entire process of fraud that Matco imposed on my franchise but my patience is wearing thin.

• Here is the latest false propaganda from Matco Tools:

  http://vetfran.matcotools.com/franchise/veterans/videos/

  I wonder what all of the Veteran franchisees who have been falsely terminated or given non-viable routes from Matco might say to this video?

  It seems funny to me that Mr. Willis would state when I went through training in Stow, OH that he had an open door policy and was always available to discuss issues with franchisees and when I drove 14 hrs. to discuss my false termination face to face he would not talk to me but had his henchmen meet me at Bob Evans (Ernie Lauber and Mike Swanson) to pass judgement and attempt to have me sign away my rights to discuss my franchise experience and deem me the one responsible for franchise failure after I cured their false violation. This is the support you can expect from these FINE individuals at Matco Tools! This is how PATRIOTIC they are to our American soldiers!

  Ask James Bunch, Richard Brannies, Michael Gatewood, Charles Roberts and myself how Matco treated our franchises. Then you will see the BIGGER picture of just how fraudulent this company and its Wall Street management is!

• Someone once told me experience is life’s best teacher! I experienced 10 guys go through training in Stow, OH. to become franchise distributors. Today, only one still has a franchise. I experienced Matco sell me a route which DID NOT have 325 potential customers on my LOC. I experienced Matco Churn twice as many distributors as ALL the other franchises COMBINED (STS, Snap-On, Mac and Cornwell) in 6 1/2 years as a franchisee. I experienced Matco threaten my franchise if I didn’t surrender shops to put another franchisee in business. I experienced Matco tell me I did not surrender enough shops and leave me yet another route which did not have 325 potential customers and out of those customers a third of them were shops that a franchise distributor with a SEPARATE agreement with Matco than mine stopped calling on because he deemed them UNPROFITABLE! I experienced my DM promise me on 3 different occasions support of a route resurvey only to send me a separation letter stating I did not meet a purchase average that could only be achieved if he actually performed that promised survey. I experienced that same DM who failed to do a promised survey create a FALSE SURVEY when I contacted corporate about not receiving support. I experienced that same DM give me a completely new route with 405 customers (almost 2/3 more customers than what I had previously had)
  3 days after I complained and threatened to find an attorney for the fraud being imposed on my franchise. I experienced that same DM visit me on my truck and tell me everything was fine and I had nothing to worry about and that I was doing a GREAT job! Then I experienced Matco falsely terminate my franchise agreement after I cured my violation and experienced two weeks of record snowfall in which I DID purchase LESS tools from Matco.

  Experience should tell you that this company is a FRAUDULENT company and it might be wise for you to HEED my experience and to understand that Matco Tools is a WALL STREET owned company who only cares about ONE thing! Profits for their PIGS! They don’t care who they got to screw to get it either! Veteran, Mechanic, Service Writer they don’t care if you got a pulse, good credit and some established equity you are a prime subject for the WALL STREET PIG!

• http://vetfran.matcotools.com/franchise/veterans/videos/

  Are politicians really buying into this false crap Matco spews? Does Vetfran and the IFA believe this false crap about Matco being successful and having a viable franchise opportunity?

  FACTS don’t lie!

  Out of my training class of 10 only one still has a franchise.

  Matco has not grown as a company since 2006.

  Matco has to lie about their routes (Territory, Overlapping, ) to get new franchisees to sign up for the CHURN!

  Matco uses television and its association with the NHRA to bolster its image so it can induce more CHURN!

  How can management say their supporters of our troops and commit fraud, threaten, steal and create false documents to falsely terminate a franchisee who served his country in the United States Army?

• The Year/ number of franchisees

  2006- 1490
  2007- 1479
  2008- 1443
  2009- 1462
  2010- 1418
  2011- 1423

  No GROWTH! Your are a liar Matco! Your advertisement is false! Your company does not support anyone let alone our troops!

  You are a DISGRACE to soldiers like myself, Michael Gatewood, Richard Brannies, James Bunch, etc.

  Your franchisor membership with the IFA and the IFA organization created to solicit and control the sale of soldiers called Vetfran should revoke your membership. But hey! How many members have they revoked? Or do they just keep signing up MORE and MORE Churn and Burn franchisors? As long as you have money the IFA will take you. They need those dollars to BUY OFF politician votes and promote more tax breaks by lobbying congress to do it.

  The American people have NO PLACE for this kind of fraud in our government. No one polices the franchise industry! No one holds franchisors responsible for their actions. Politicians say “Get a Lawyer.”

  How many franchisees have had success finding an attorney to represent them? I spent almost 10 months finding an attorney! This is a freaking problem!

• Anyone know what the franchisor’s and franchisor attorneys are up to?

  Anyone take a look and see what is on their minds at the IFA Legal Symposium held in May of this year?

  It seems the IFA and Franchisors may have some concerns about how fraudulently and falsely terminated franchisees might be able to voice their concerns about their fraudulent experience on social media.

  What do you think the F.D.D. will look like next year for IFA franchisors? Not only will you have to sign an agreement which strips you of your right to due process but I bet the next thing IFA members have their franchisors put in their F.D.D. will be a clause that strips you of your right to free speech over social media.

• THE GUYS AT THE TOP NEVER MADE A LIVING OPERATING A TOOL BUSINESS…. THEY DONT UNDERSTAND WHAT IT REALLY TAKES I HAVE 25 YEARS IN THIS FIELD AND CAN TELL YOU THEY MADE PLENTY OF MONEY SELLING THESE ROUTES……….WITH 9 YEARS ACTUALLY OPERATING ONE OF THESE ROUTES FOR SNAP ON TOOLS, THEN BECOMING A FIELD MGR, THEN GOING TO MATCO AS A DISTRICT MANAGER. THEN BE PROMOTED TO REGIONAL MANAGER………… THE REGIONAL MANAGER IN FLORIDA NEVER WAS IN THE TOOL BUSINESS…….. AND SEVERAL OF THE REGIONAL MANAGERS WOULD MAKE FUN OF THE FAILURES.. THAT THEY HELPED HAPPEN…………. HE RUNS TEXAS NOW…….. THE STUFF I HAVE ON THESE PEOPLE COULD BE VERY HELPFUL TO SOME PEOPLE…… ITS A SHAME THAT IN THE PAST I BROUGHT TO UPPER MANAGEMENT VP / SALES AND THE PRESIDENT AT THAT TIME WHY THESE PEOPLE WERE FAILING SO QUICKLY. ONLY TO BE TOLD WE CANT DO IT THAT WAY WE CANT GROW FAST ENOUGH IF WE DO IT THAT WAY………… WHAT A SHAME SOME PEOPLE “VERY FEW” BECOME VERY SUCCESSFUL AND HOW MANY ARE IN THE BUSINESS AFTER YEN YEARS………….

• Is there any media reading this one? Here is a guys speaking the truth from both sides of the fence. Will ANYONE do something about this fraud amongst franchisors? I only ask any media to look and see what Matco did to my franchise and how they are so corrupt they think they can break the law and commit fraud and a Arbitration clause will protect them. This needs to change! Someone grow a sack in our government and stand for CHANGE! Selling unsuccessful franchises and churning to make money while using the Vetfran card and creating a F.D.D. that strips individuals of their rights as an American citizen HAS TO STOP!!! You can’t commit fraud, and lie, and steal and create false documents to FALSELY TERMINATE your franchisee! It is AGAINST the law in Arkansas and is a Class B Felony. Business have rules to follow and if your franchisor is going to INTENTIONALLY break them then THEY should be the going to court and defending themselves. Not going through an Arbitration process where ALL the tool companies resolve their issues because they are PROTECTED!

• For all those who can not stand the fraud and the false support of Veterans that Matco offers to Veterans please sign the petition on the link that follows!

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

• Cal-Rocco
  It is an amazing statistic that Matco Tools has a 90% franchisee failure rate over a rolling 10 year average, that number will never show up in the FDD as Matco is only required to give 1 year worth of statistics…WELL most everyone makes it thru their first year…

  That pretty much sums up the fact that Matco Tools is not a career

  Matco Tools Fraud

• From Maaco blog:

  cal rocco says:
  August 16, 2012 at 8:17 pm
  having been in this business as a tool distributor with snap on tools for nearly nine years and with matco tools for 13 years as a district manager and regional manager and franchise development manager I can tell you that the companies make money on turn over……. why we would put into business 330 distributors to end the year with a 30 net gain……… 300 failed????????? failure was built in to the distributorship…… and management was aware of it… i brought to the senior management the reasons these people would most likely fail.. only to be told we cant follow your plan as it slows our growth………….. when they went to out side financing that insured the failure wouldnt hurt the companys bottom line as the financing was SBA in most cases…………. only a few very specially suited people ever made it in this business……….

  more Matco Tools fraud

• After 15 years with matco a couple things i know is. Ken tred jerk an rick pen head in credit at matco run the show. What these guys say is law. If they think your numbers are good enough then you will stay. If not,then you are gone. They both road me until i could not take it anymore. It all goes to these two guys. Everything you do is watch buy these two. Did you no you can write to many psa contracts? I once sold five toolbox psa in one week credit didnt think i could do that. Ken held the cedits for two weeks while they looked them over an called everyone one to make sure they bought the toolbox on the contract. The dm is no more than a yes man. Dms have 0 say in anything you do.They are told what to say an when to say it. I held on way longer than i should have,but i loved the tool sales just not the franchise

• Wow! I was perplexed by a Forbes article warning other Veterans who might want to buy a franchise and was surprised when they kind-of warn veterans about the growing concerns with a Matco franchise. As you can see this article came out on June 12, 2012.

  http://www.forbes.com/sites/caroltice/2012/06/12/franchise-chains-recruit-veterans-problems/

  Then I saw this article which came out on June 13, 2012 and was no doubt published in a magazine for millions of people to read.

  http://galleries.forbes.com/gallery/1339451706656

  The two kind of contradict each other, don’t you think?

  I wonder how much money Forbes didn’t get paid to list Matco, Liberty Tax Service and Merry Maids as Top 10 Military-Friendly Franchises?

• Turning them over in the fort wayne indiana area. Last three years five dealers gone. Only one left. Great job Ken,Rick.Tom. way to curn them dealers.

• It has been a while since I have poked fun of the simple minded. Still wonder why your pitty party didnt show up at the Flamingo I was waiting. Todd if you spent as much time selling tools as you do complaining you would have been a success. I tote promote collect, You whine complain and collect nothing. Oh I know the great payday from Jerry is coming, you are a fool. Marks & Kline got rich from people like yourself win or lose they get paid think about it and how long it is taking the joke is on you. You are from are-can-saw so I understand.

• http://www.forbes.com/sites/caroltice/2012/06/12/franchise-chains-recruit-veterans-problems/

  Article in Forbes brought out several very good comments including:

  Jody Whistleblower 3 days ago
  The FBI defines franchise fraud as a pyramid scheme.

  As a victim of franchise fraud, I can tell you that a discount on a franchise fraud, is still fraud. My franchise fraud was so well planned out that the day I signed my franchise papers, I was really pre-signing my bankruptcy papers by a few years.

  Veterans business opportunities might not be a rosy as the franchise industry leads veterans to believe.

  Franchises for veterans might be a cover for a franchise fraud. Veterans franchises programs might be nothing more than a discount on a fraudulent scheme.

  The FTC FDD lacks the requirement for franchisors to disclose UNIT sales. The FTC is fully aware, and even states in the 2007 Franchise Rule that they are well aware of misrepresentation and gag orders in the franchise industry. The FTC even states that the benefits to the franchising OUTWEIGHS the risk to the franchisee. As a result, the FTC looks the other way on franchise fraud.

  In addition, the franchise contract will read as if the franchise will NOT have to pay future royalties, if they terminate their franchise agreement.

  When the franchise fails (because it was never viable from customers), the veterans franchisee will be squeezed for any money the fraudulent franchise can get. Because you “invested” your life savings in the franchise scam, you will double down, and the franchisor will you to ask your spouse for money to keep your franchise contract from default. Next, the franchisor will talk the veterans franchise into shaking down their family and friends.

  When the veterans franchises are completely financially exhausted, the franchisor will threaten to file a frivolous lawsuit against them, claiming the veterans franchises owe future unpaid royalties, even though this is completely untrue. The purpose of the frivolous lawsuit is to coerce the veterans franchise to sign a gag order, so the franchisor can keep the franchise fraud a secret, so future veterans franchises fall for it. In addition, the franchise termination agreement will have a “Transfer” clause, which allows the franchisor to transfer the failed veterans franchise to another veterans franchises victim, without legally having to report the failure to the FTC on the FDD.

  I hope more Veterans are aware of franchise fraud, and don’t fall for the myth that “they are in business for them self, but not by them self.”

  Obviously, if tlman felt the need to come out an comment here – he – along with Matco – must be feeling the heat