MATCO TOOLS Franchise Complaints

4,850 thoughts on “MATCO TOOLS Franchise Complaints”

• Oh that is so rich! The Federal Trade Commission is responsible for rules and regulations in franchising and is responsible for making sure franchisors meet certain information factors that franchisees are supposed to make informed decisions about whether to invest.

  This is what my U.F.O.C. states on the 2nd page.

  To protect you, we’ve required your franchisor to give you this information. (Underlined) We haven’t checked it, and don’t know if it’s correct. It should help you make up your mind. Study it carefully. While it includes some information about your contract, don’t rely on it alone to understand your contract. Read all of your contract carefully. Buying a franchise is a complicated investment. Take your time to decide. If possible, show your contract and this informantion to an advisor, like a lawyer or an accountant. If you find anything you think may be wrong of anything important that’s been left out, you should let us know about it. It may be against the law.

  There may also be laws on franchising in your state. Ask your state agencies about them.

  Federal Trade Commission
  Washington D.C.

  I read this to my District Manager before I made the decision to become a Matco franchisee. I told him I was very skeptical. I also informed him that didn’t agree with “arbitration clause” with which he told me this was the only way to become a franchisee. He also mentioned that I have an entrepreneur spirit and he knows I have the drive and ambition to succeed and he was right. He just didn’t tell me that Matco was going threaten me with the loss of my success if I didn’t surrender what we built together.

  I also find it appalling that the life of one franchise investor who is treated criminally or falsely means nothing to the FTC. Imagine if we told women or men who were raped by an attacker that they could not prosecute because the attacker only committed the one offense.

  Talk to a victim of Matco tools fraud and tell me they are not a victim.

  There are 38 people who claim to be victims of franchise fraud through ONE attorney right now! Is 38 an insufficient number to get a result from the FTC.

  Give me a number because I know I can reach it. You want 1000. FOUR YEARS. In less than four years Matco has churned over a thousand franchisees. You want 2000 Eight years. The number of unsuccessful or fraudulent franchises is real.

  I invested in this opportunity because I thought that it was backed by the FTC and a credible organization called the International Franchise Association. I thought these organizations would protect the American investor from fraud and deceptive practices. NOT TRUE!

  I am living proof that you can call these organizations for support and it falls on deaf ears. They want a piece of that corporate pie and don’t care what they have to do to get it.

• “The Federal Trade Commission is responsible…”

  No, it’s not. That’s what the disclaimer on your UFOC told you: You’re on your own. They told you they didn’t even read it and don’t know if it’s correct. It’s not their job to do the due diligence for every private investor. Imagine the taxes we’d be paying if they did that!

  “I read this to my District Manager before I made the decision to become a Matco franchisee. I told him I was very skeptical.”

  I don’t think the FTC meant to check the facts with a commissioned salesman.

  What did the franchise attorney you paid to review the document and give you a recommendation say?

  “I also informed him that didn’t agree with “arbitration clause” with which he told me this was the only way to become a franchisee.”

  So you signed a contract you didn’t agree with?

  “I also find it appalling that the life of one franchise investor who is treated criminally or falsely means nothing to the FTC.”

  That’s not what they are set up to do. If you think the FTC should represent individual investors, you should work to increase the size of the FTC 50X or so, and pay the taxes it will take.

  “I invested in this opportunity because I thought that it was backed by the FTC and a credible organization called the International Franchise Association.”

  You thought Matco was “backed by” the U.S. Government? Like the post office? And are you saying you aware of the IFA when you signed up? Were you a member?

  “I thought these organizations would protect the American investor from fraud and deceptive practices. NOT TRUE!”

  Todd, you made a huge financial decision without consulting or investing in an experienced franchise attorney. You expressed your concerns to a commissioned salesman. You signed an agreement you weren’t comfortable with. And now you want to blame the International Franchise Association, a group of big franchisors who got together to promote the interest of franchisors?

  You made a mistake. You assumed the business world had been swept for landmines and learned an expensive lesson that everyone has to do their own homework. To blame the IFA and the FTC for the way the business world works is a bit whiney, don’t you think?

• I fully recognize who I am dealing with now!

  An intellectual which I should fear correct? Set to put me in my place as a mere American citizen not worthy of your superior intellect in discussing law and the lack there of.

  You want to justify fraud? You want to label me as a moron because our government backs fraud at the highest corporate levels? Why don’t you jump in your classy Mercedes Benz and ride off into the sunset on the coat tails of the next corporate organization who will pay you to insure that Americans rights through our Constitution will be stripped as long as their as some smug attorney who will battle wits with a man who served his country made his franchisor lots of money and got shit on because new management wanted a BONUS!

  There again, you say the FTC is not responsible then why did I receive a U.F.O.C. in the first place?

  Do I need to tell YOU where the term U.F.O.C. was generated and for what purpose a U.F.O.C. is to serve or did you fail to read that in law school?

  Yes! I took a risk! Just like all the other people who have been CHURNED through a Matco franchise but I assure you this “My failure as a franchise owner to meet purchase average had NOTHING to do with me. It had everything to do with Matco.

• Regarding attorneys and seeking council before buying a franchise. My own District Manager asked me if I consulted an attorney. I asked “Why” “Do I need to?”

  You see Mr. Superior intellect. Matco advertises their franchises using catchy phrases like “You will be in business for yourself not by yourself.” “Be your own boss.” “World class support.” “Pre-defined LOC” “No need for cold calls.” “#1 franchise”

  So your telling me that selling fraud and lies is legal and I should have known better, RIGHT! That the High School education I got should have prepared me for a Corporate rape? That it is all my fault because I signed on the dotted line and that gives Matco the ability to break laws and commit felonies against my business. SHAME ON YOU Mr. guest! SHAME on you!

• Shame on Mr. Solomon for pointing the finger at Americans with good credit who trust in a false business model that IS NOT SUCCESSFUL! PROVES ITSELF IS NOT SUCCESSFUL IN THEIR OWN F.D.D.’s and placing responsibility on Americans so CON ARTISTS can PROFIT through Small Business Administration loans BACKED by the American TAX PAYER!

  I have NO DOUBT that some corporate attorney would write some kind of CRAP like that. He probably didn’t inhale either or cheat on his wife.

• I’m not saying it’s right, but here’s how it works:

  There is no government agency, branch of law enforcement or association whose job it is to check out and vet franchise opportunities for private individual investors. This is a fact. If someone thinks the FTC or an association does this, they constructed it in their own imaginations because nowhere is it stated that they do this.

  That means individual investors have the responsibility to do their due diligence and/or pay professionals to do their due diligence for them.

  If private investors enter into a business agreement and they believe they were mistreated, realistically they must hire attorneys and sue through the civil court system because resolving contract disputes between individual private investors is not what the government is set up for.

  If Todd and 35 franchisees are suing the franchisor, good for them. That’s the way the system is set up to work. Hope they get what’s coming to them. But if anyone thinks that the FTC, the IFA or the PTA is to blame because THEY didn’t do their homework, didn’t hire a professional advisor and jumped into a game they didn’t know the rules of, they are kidding themselves.

  C’mon Todd, don’t you take ANY responsibility for your own poor judgement. Your own DM asked you if you had an attorney and you said “Why, do I need one?”

  You told your DM that you didn’t like what you read in the UFOC, but you signed it anyway.

  Looking back, do you think it was a mistake that you didn’t get the advice of a seasoned franchise attorney or consultant before signing up with Matco?

• Blah, Blah, Blah,

  It was made a selling point by my District Manager the Federal Trade Commission watches over franchising to make sure American Investors are not taken advantage of through SCAMS by fraudulent corporations. That is why it took (I think 14 days) before I could even buy a franchise through Matco Tools because you have to view the U.F.O.C. now F.D.D. before you sign. Now your telling me the FTC has nothing to do with franchising? Why the hell do they exist if they are not doing anything to protect the people? What is the role of a government organization that DOES NOT SERVE THE PEOPLE? I thought all positions of government officials is to serve the interest of THE PEOPLE? I think you might have FLUNKED your Civics class in High School. I even learned there that ALL government organizations are there to serve the PEOPLE of the UNITED STATES. Have you ever served your country? If you did you would no that you take that oath it is to serve your Country and protect the PEOPLE!

  I used NO poor judgement. I took Matco’s franchise opportunity by the horns just like any other soldier who has served his country. I worked my ass off. I made good money. I did it better than my Snap-On competitors who both quit when the going got tough in 2008. One of them even filed bankruptcy and became a Matco franchisee two years later in the route I was forced to help establish in 2006. I had happy customers. Matco threatened my with the loss of all my work if I didn’t surrender them my success. I still owed Matco a lot of money on my franchise when they forced me out of my route. I did not receive one shop in 4 years from Matco for the non-viable route I was left with when they stole from me. They left me there to bleed to death still owing them money.

  I would like to apologize if my persistence as an American for justice offends you.

  In regards to it being a mistake not to seek legal advice before I bought my franchise. From what I know now about attorneys I would say to ANYONE wanting to buy a franchise DO NOT WASTE YOUR MONEY ON ATTORNEY ADVICE. Hand it over to me because if any attorney tells you a franchise is a good opportunity he is a freaking liar!!!

  In regards to advice from consultants. Consultants like Lonnie Helgerson who sits on the Vetfran Committee chair. I think I would rather someone jump off a cliff than take the advice of someone who could care less if American soldiers are being crapped on by corporations like Danaher. This guy profits off a list of Veterans whom he sells to franchisors. How low can you get?

  Stay away from attorneys and consultants! Most are kissing the tails of corporations with deep pockets! For some people it is all about the money and they don’t care who they have to screw to get it.

  Look to the Social Media for your best answers on how to invest. My best advice is to go it alone! If you can have success in a franchise you will have even more success without them. Franchising is for FOOLS! Even this guest guy says that is true! Right guest?

• Since you seem to be such an expert on franchising maybe you could answer a few questions?

  How many of Matco’s 230 Vetfran franchisees, who have served our country, have lost their franchise through Matco Tools?

  How many Veterans have to be CHURNED before someone has to say this is WRONG?

  When is the Vetfran initiative going to hold their franchisors responsible for selling viable business opportunities with PROOF of success?

  How much blood can Corporations spill before anyone says enough?

  When will the IFA hold its franchisors responsible for committing fraud against the Veterans who serve our country?

  Do you think Veterans are immune to Matco’s franchise SCAM?

  Do you think Veterans should be exposed to the ugly world of franchising?

  Matco has been a Top 10 Vetfran Military-Friendly Franchise for quite some time. Don’t you know?

  What a disgrace! What a lie! What a JOKE!

  Proof that big corporations can lie and the media will publish it!

• Todd says “It was made a selling point by my District Manager the Federal Trade Commission watches over franchising to make sure American Investors are not taken advantage of through SCAMS by fraudulent corporations.”

  Todd, if the FTC’s role in franchising was central to your decision to invest your livelihood in a Matco franchise, do you think it was wise to take the word of a commissioned salesperson and not, say, even check to see what the FTC says about franchising?

  Check out the part about “complaints”:

  http://www.ftc.gov/bcp/franchise/faq1.shtm

  “No federal or state agency or private organization can tell you whether a company is legitimate or operates in good faith. The FTC or the Better Business Bureau can report on whether consumers have complained about a company. But, operators of fly-by-night franchise scams know this, and may change the name and location of their company every few months to avoid a record of consumer complaints.

  “There is no substitute for checking the track record of a franchisor by personally talking to at least 100 prior purchasers.”

  Did you read the FTC website before you purchased, Todd?
  Did you read where it says no agency can tell you if a company is legit and it’s up to you?
  Did you personally talk to 100 prior purchasers before you signed with Matco Todd?
  The FTC required Matco to give you the contact information of current and former franchisees, and told you to call 100 of them.
  They gave you 14 days during which the salesman couldn’t bug you so you could call those 100 purchasers.

  Did you do that Todd?
  If not, how did you spend the 14 days that yo should have spent doing research?
  In retrospect, could you have used that time better?

  Do you still think it’s the FTC’s fault now that you know that they put up warnings but you never took the time to read them or follow their advice?

• Todd states “Correct me if I am wrong but the IFA (International Franchise Association) was created to protect innocent people who had money from becoming victims of fraudulent opportunities being created or sold to those who were willing to invest their money.”

  You are wrong so I am correcting you, as requested.

  The IFA was founded in order to keep franchisors selling franchises despite bad press and the threat of regulation caused by blatant franchise scammers. The purpose of the IFA was to create a pro-franchisor smokescreen in the press and promote the myth that all franchises are successful. A main objective was to kill legislation that would restrict franchise sales. Protecting franchisees did not even figure in.

  IFA co-founder and founder of Dunkin Donuts William Rosenberg stated the mission was “To build an association which would maintain a favorable commercial and regulatory climate for franchising.”

  http://emarket.franchise.org/Timeline/IFA-Timeline25.html#IFA Events

• “The IFA promotes a set of core values that enforce uniformity and fairness within the franchising industry.”

  Nothing fair about this! It is called daze and confuse!. Over 200 pages of crap that does nothing for the fairness of franchising!

• Michigan House Bill 5465 was introduced this March and was dormant until two weeks ago, when a hearing was suddenly scheduled for last Wednesday. If enacted, the bill would have granted franchisees a wide latitude in choosing vendors of “equipment, fixtures, supplies and services” in the operation of their businesses. IFA helped mobilize a coalition of various business groups including the Michigan Restaurant Association, Michigan Chamber of Commerce, and Michigan Retail Association to oppose the legislation.

  IFA’s Director, State Government Relations, Public Policy & Tax Counsel Dean Heyl traveled to Lansing and testified before the House Regulatory Reform Committee against the bill. Members of the Committee universally understood the need for consistency in a customer’s experience when patronizing a franchise, whether it be eating at a restaurant or staying at a hotel and that this bill would have put a franchise’s brand integrity at risk.

  The Chair of the Committee said that there were no foreseeable plans to have a vote on the bill.

  The defeat of House Bill 5465 is significant win for the franchise industry. IFA has always taken the position that the occasional disagreements that arise between franchisees and franchisors should be resolved between the parties and not through legislation that will have the likely result of encompassing other franchisees and franchisors not involved with the original dispute.

• Todd wrote: “I invested in this opportunity because I thought that it was backed by the FTC and a credible organization called the International Franchise Association. I thought these organizations would protect the American investor from fraud and deceptive practices.”

  Those are 2 key mistakes you made, Todd.

  You were wrong about the role of the FTC and didn’t bother to read their website.

  You were wrong about the mission of the IFA and didn’t bother to read their website.

  You put your livelihood and your family’s well-being at risk by cooking up assumptions in your head and not bothering to verify them in real life.

  Now you want to blame the FTC and the IFA forthe uninformed assumptions in your head.

  Now your wife has to endure not only the financial setbacks caused by your unfounded assumptions, the money spent on lawyers to wage your futile quest for revenge, and (I’m sure) endless hours of obsessive rants and hours spent blaming others on the Internet.

  Ask your family, your friends, your fellow unhappy franchisees and I’ll bet they’ll say the same thing: Do your family a favor Todd and turn off the computer, let the lawyers do their jobs, and stop doing further damage to your reputation online.

  Time to man up, own up, and move on.

• We know what the IFA does! Why do they claim to have a soul and care about franchisees? Our Government is not for the people. The laws being passed are to protect CORPORATIONS and not the people.

  When is the government, attorneys and those who are charged with protecting America going to start doing it again?

  All I want is fair treatment for the loss of my business which was FALSELY TERMINATED!

  I should have been able to keep my franchise after my “false” faults were cured and was not allowed to do so because I decided not to go to Expo in 2011. The two weeks of snow did have an affect on my purchase average and I refuse to buy what I can not afford to pay. My business was in a RECOVERY MODE due to the threat I received from Tim Novak (New Regional Manager) who stole my customers and my business success to put bonuses in their pockets. I had 4 times the start-up inventory of a NEW franchisee. I was purchasing twice NPA. WHY! would a new REGIONAL MANAGER named Tim Novak threaten me with the loss of my franchise if I didn’t surrender shops?

  Why are my questions to the IFA, Vetfran, Politicians and Attorneys falling on DEAF ears?

  Does anyone in franchising care that a franchisor is committing felonies against its franchisee?

  Does anyone in franchising care if Matco is falsely separating their franchisees for “good cause” which didn’t exist?

  Why isn’t the fact that insurance is purchased to protect franchisors from being SUED by franchisees published in the F.D.D.?

  I think that would be valuable information for an investor to know. If an investor knows that information they can see the true heart of the franchisor and not invest in their SCAM! A franchisor that has insurance to cover unethical and immoral business behavior would have had a HUGE impact on my decision.

  The fact that there have been MANY settlements outside of the court through mediation involving franchisor/ franchisee without being put in an F.D.D. is further proof that Matco is HIDING their true fraud!

  Matco lies in recruitment videos featuring their, now President, Tim Gilmore.

  Matco sells non-viable routes which include customers in the List of Calls who are already being serviced by a Matco franchisee, customers which do not speak English or have SSN, customers which change oil for min. wage, customers who wash trucks, customers who are service writers, etc.

  Matco and the International Franchise Association utilize its COALITION forces to obtain MORE SBA loans for TAX PAYERS to fund their franchise SCAM, CHURN AND BURN, FLEECE AND FLEE operation.

  Your work as guest on this web site to smear my name in front of your colleagues and bring light to the fact I am not an attorney.

  I will tell you this though, I know more about being an AMERICAN than YOU HAVE EVER DREAMED OF!

• America is not a nanny state.
  It’s not the government’s job to do the due diligence you should have done.

  Man up. Own up. Move on.

• I did my due diligence to the best of my ability with my bills paid, equity in property and taxes paid. Matco approved me just as they have 250+ sheep per year!

  America is not a nanny state but it does have an obligation to the PEOPLE of the UNITED STATES to PROTECT and SERVE!!!

  Or are you a COMMUNIST? If you are “GET THE HECK OUT OF MY COUNTRY.” Before I place you under “Citizens Arrest” for crimes against the American people!

  GOD BLESS AMERICA!!!

• New Jersey is not that far of a drive! CALL ME!!!

• It’s the job of an attorney to protect his client, too!

• guest,

  How do you know what I have or haven’t read before starting my franchise?

  Why are you set out to discredit me as someone who is warning others about the fraud of franchising?

  Is there such a thing as a GOOD franchise?

  Is there such a thing as honesty and integrity in business?

  Doesn’t an attorney have an obligation to a client to provide the best defense and represent his client in the best way possible in his grievance?

• The FTC’s mission is to protect consumers from fraudulent or deceptive claims that mislead consumers, and from harmful business practices that undermine the competitive process. The work of each of the agency’s three Bureaus is unified behind this mission, and the Office of Policy Planning articulates the policy goals that support that mission.

  What is a consumer?

• The FTC serves as a resource for Congress on competition and consumer protection policy. FTC Commissioners and staff are often asked to testify before congressional panels. The FTC also works with congressional staff to provide constituents with the FTC’s free consumer publications.

  What is a consumer?

• Who We Are
  FTC Headquarters Building

  The Bureau of Economics provides economic analysis and support to antitrust and consumer protection investigations and rulemakings. The Bureau also analyzes the economic impact of government regulation, and provides Congress, the Executive Branch, and the public with policy recommendations relating to competition and consumer protection.

  The Bureau hosts many events drawing together economists and other experts to advance economic thinking. Finally, the Bureau conducts market analysis in a variety of industries of importance to the economy and to consumers. Many of these are published as economic reports.

  What is a consumer?

• The Bureau of Consumer Protection works to protect consumers against unfair, deceptive, or fraudulent practices in the marketplace. The Bureau conducts investigations, sues companies and people who violate the law, develops rules to protect consumers, and educates consumers and businesses about their rights and responsibilities. The Bureau also collects complaints about consumer fraud and identity theft and makes them available to law enforcement agencies across the country.

  What is a consumer?

• If you have a grievance with MATCO TOOLS whether you are in a lawsuit or have legal council. TODAY! Please!!! Go to the FTC web site and fill out a FORMAL complaint of why you have a grievance with Matco Tools.

  Most victims were sold a non-viable route (A route meant to fail) to begin with but others may have different reasons for complaining.

  Make your report and hold this organization which guest says is NOT their responsibility accountable.

  A FEDERAL investigation needs to be completed to PROTECT and SERVE the AMERICAN interest in our GREAT NATION!!!

• “The Bureau of Consumer Protection works to protect consumers against unfair, deceptive, or fraudulent practices in the marketplace”

  Ugh. This is tiring, but here goes… Go back and reread the Richard Solomon article.

  Franchise buyers are not “consumers” and all that you’ve copied and pasted is irrelevant. You are embarrassing yourself by not listening and refusing to learn.

  Matco franchisees: If you are friends with Todd, please email him and tell him how foolish he sounds, for his own good.

  Man up. Own up. Move on.

• NO! If you HATE Matco for what they did to your family, your assets, your dignity! PLEASE! Go to this link https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en and file a formal complaint against Matco Tools.

  This is just one way we can fight these individuals who do not wish to represent us in the way we are SUPPOSED to be represented!

  Most people who are victims of a Matco franchise scam were never sold a viable route to begin with. I was sold something that was going to fail! I made it successful with the help of the District Manager who put me in business who also represents Matco Tools as an employee!

  For what ever reason you choose to complain, COMPLAIN!

  guest is right about one thing! Most people don’t have a clue about the FTC and what their responsibility is that is why people like guest can get on here and CLAIM that it is not the responsibility of the FTC to police the franchising industry.

  Fact is a CONSUMER is one who buys a product! A product like a “Pre-defined” LOC. A “successful business model”. A franchise is a PRODUCT! It is sold as a PRODUCT! It is marketed as a PRODUCT!

  I purchased a franchise from Matco!

  I am a CONSUMER!

• guest,

  The only embarrassing thing in this world is the lies which are represented through guests!

  I didn’t have the capital to start my own Small Business! I purchased that opportunity through a FRANCHISOR! I PURCHASED IT!!! They sold me “territory” and an “LOC”.

  I borrowed the money from a FRANCHISOR who made it EASY!

  I was told that the success of my franchise would be mine and I OWNED IT!

  I created it, they threatened and stole it so they could profit from bonuses!

  There is not another post you can make that will DIMINISH the FRAUD imposed on my franchise by Matco!

  All the time you have to do is point out that the system we have in franchising is a FAILURE! and that those who invest in franchising have a HIGH probability of being SCAMMED out of their money!

  I listed the paragraphs which have consumer in them to show that the reason for role of the FTC is to PROTECT consumers!

  A franchise disclosure document (FDD) is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States. It was originally known as the Uniform Franchise Offering Circular (UFOC) (or uniform franchise disclosure document), prior to revisions made by the Federal Trade Commission in July 2007. Franchisors were given until July 1, 2008 to comply with the changes.[1]

  The Federal Trade Commission Rule of 1979 which governs disclosure of essential information in the sale of franchises to the public underlies the state FDD’s and prohibits any private right of action for the violation of the mandated disclosure provisions of the FDDs. Therefore, the FDD implies that only the federal government or the state governments have the right to sue and negotiate consent decrees and rescissions with those franchisors who violate the provisions of the FTC Franchise Rule and the Franchise Disclosure Document (FDD).

  The Franchise Rule specifies FDD disclosure compliance obligations as to who must be the one to prepare the disclosures, who must furnish them to prospective franchisees, how franchisees receive the disclosures, and how long franchisees must have to review the disclosures and any revisions to the standard franchise agreement.[2]

  The FDD underlies the franchise agreement (the formal sales contract) between the parties at the time the contract is formally signed. This franchise sales contract governs the long-term relationship and contains the ONLY promises and obligations of the parties to each other that will remain in effect over the stated time term of the contracts – the terms of which generally range from five to twenty years. The contracts cannot be changed unless there is agreement of both parties.

  Under the Franchise Rule, which is enforced by the Federal Trade Commission (FTC), a prospective franchisee must receive the franchisor’s FDD franchise disclosure document at least 14 days before they are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. The prospective franchisee has the right to ask for (and get) a copy of the sample franchise disclosure document once the franchisor has received the prospective franchisee’s application and agreed to consider it. The franchisor may provide a copy of its franchise disclosure documents on paper, via email, through a web page, or on a disc. Franchise disclosure document requirements.[3]
  ————————————————————————————————————
  The Federal Trade Commission Rule of 1979 which governs disclosure of essential information in the sale of franchises to the public underlies the state FDD’s and prohibits any private right of action for the violation of the mandated disclosure provisions of the FDDs. Therefore, the FDD implies that only the federal government or the state governments have the right to sue and negotiate consent decrees and rescissions with those franchisors who violate the provisions of the FTC Franchise Rule and the Franchise Disclosure Document (FDD).
  ————————————————————————————————————-
  sale of franchises to the public

  sale of franchises to the public

  sale of franchises to the public

  sale of franchises to the public

  sale=purchase

  purchase=consumer purchase=consumer purchase=consumer

• Todd stated: ‘It’s the job of an attorney to protect his client, too!’

  So in all of your rants about how unfair the Franchisors make the franchise agreement and the IFA Legal Symposium, are you finally realizing that the franchisor’s attorney is just protecting their clients?

  And listen to guest, Franchisees are not consumers.

• jd,

  We have not spoke before to my knowledge. I am sure you can appreciate that the franchise system is FLAWED! I am sure that you can appreciate that the franchise system in place PROTECTS CORPORATIONS and FRANCHISORS!

  Although, I don’t see any change in the near future, I am sure you can see that there is a lot of truth to my posting.

  Matco franchises are sold!

  The FTC even states it in the paragraph I have identified above. It is not a process of investing and growing!

  I am living proof of that. An investment requires capitol and growth. A business that can not grow is called a PURCHASE. A purchase=sale.

  A stock that will never grow is not an investment.

  Matco is NOT an investment!

  An investment can be sold for capital gains!

  Matco franchises are not sold by the owners. They are reacquired through FAILURES and FALSE TERMINATIONS!

  Matco has stunted what would be called an investment by selling franchises which are not viable and CAN NOT GROW! Read the F.D.D. or U.F.O.C.! This business is not designed to grow at all. In fact, the U.F.O.C and F.D.D. even says Matco is not responsible should 90% of your customers close their doors in a bad economy.

  I am no doubt confident that you have watched the Tim Gilmore recruitment video where Tim states that Matco is a great decision in a bad economy and in a good one even better.

  Lies, deceit and fraud is what makes up the Matco franchise investment.

  Let’s call a black cat a black cat instead of glorifying it as something it is not!

• Here’s what you’re failing to understand Todd:

  It’s not illegal to sell a bad franchise or a franchise with a ridiculously hig failure rate.

  The FTC doesn’t regulate or police franchising, they just require franchisors to provide franchisee investors with certain required information. Whether a given franchise is a great deal or a terrible deal is up to the investor to decide, based on that information and due diligence research.

  I mean, if you wanted to sell a franchise with a 100% royalty it wouldn’t be illegal as long as you stated it in the FDD right?

  And if 90% of a company’s franchises have closed in the past 3 years, it’s not illegal for them to sell franchises as long as they disclose those failures and list contact info for those who failed, right?

  Those are the facts. That’s the reality. It might be morally reprehensible, but it’s not illegal.

  So, basically, Matco is a crappy franchise for most people with a high failure rate. But that doesn’t make it illegal, because they disclosed it, follow?

  See: http://www.unhappyfranchisee.com/matco-tools-franchise-distributor-churning/

  Somebody from the Marks & Klein law firm analyzed the Matco FDD:

  “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.”

  So, Matco fully disclosed that half of their franchisees churn out of the system every three years. It’s right there in the document the franchisees sign. I’m sure it was in the UFOC Todd signed.

  How is it fraud if it was disclosed up front and ignored by franchisees who don’t read the agreement they sign?

  You see, Todd, if you hired a franchise attorney like Marks & Klein BEFORE – not after- you signed up, they could have pointed that out to you and talked you out of buying. Unfortunately, you’re getting your education after the fact, which is a lot more costly.

• franchisor’s protecting their clients.

  Mob bosses had henchmen who protected their crime as well!

  Are we really going to glorify a Matco franchise as something it is not and COULD be proven in a court of law IF someone could bring a lawsuit to prove it?

  Matco’s investment as you have called it (not true) is fraudulent, deceptive and unfair to the person PURCHASING it!

  It is a purchase because you can not sell it for anything more than what it costs to start it up. Name ten franchisees who have profited from selling a successful Matco franchise? There is your answer! Not an investment! Lies, fraud, deceit and unfair practices!

• Todd writes: “It is a purchase because you can not sell it for anything more than what it costs to start it up.”

  That’s true. But that fact is likely disclosed in the UFOC you signed but didn’t read.

  Again, from that Marks & Klein report:

  “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.”

  They got that info by reading the disclosure document. Had you read yours or paid someone to read it, you would haveknown ahead of time.

  (Though would you have listened? That’s the question).

• I didn’t mean it was true that it’s a purchase, but that it’s true that it’s nearly impossible to sell. But that’s clearly disclosed that less than 7% transfer their franchise to a different investor.

• guest,

  Your about as full of crap as a stuffed Thanksgiving turkey.

  When I started my franchise there was nothing on any Social Media that would have alerted me to Matco being a fraud.

  Matco was good at covering it up. Just like they attempted to do recently.

  This article of Marks and Klein came AFTER I was terminated.

  I would appreciate it if you didn’t make accusations on this web site that you have NO IDEA happened of not.

  Your stating things as FACT that you have no idea if they are true or not.

  WHO THE HECK DO YOU THINK YOU ARE?

• guest,

  That’s true. But that fact is likely disclosed in the UFOC you signed but didn’t read.

  Likely? Is that what you are on here to do? Discredit me with LIKELY?

  By the way, I am glad you were with me the 14 days I had to consider on whether to buy (PURCHASE) what I now know to be a FRAUDULENT FRANCHISE!

  I like the way you throw around words “the fact is” “you signed but didn’t read.”

  Is guest my left testicle? I know my left testicle was present when I made my decision.

• You act as though someone who can’t afford to start his own small business can afford to buy a franchise and pay an attorney, a consultant and send money to FranPac.

  You obviously know I have spent a great deal of time educating myself on franchising and I know far more than my Deputy Attorney General, House and Senate Reps. who have never heard of the International Franchise Association.

  What makes you STATE I didn’t read my U.F.O.C.?

  Who the HECK do you think you are?

  Can you believe that? My Deputy Attorney General never heard of the IFA.

  Two House Reps. in Arkansas never heard of the IFA.

• Todd:
  What year is the Ufoc you signed?

• “Your about as full of crap as a stuffed Thanksgiving turkey.”
  Really? We stuff ours with a breadcrumb dressing.

  “This article of Marks and Klein came AFTER I was terminated.”
  The article was just information straight from the disclosure document every franchisee receives.Please let us know what year UFOC you signed so we can see what was disclosed to you. You have posted hundreds of comments about how you were tricked and lied to. Let’s see what they actually said.

  You could send the administrator a copy of your ufoc so he could post it.

  “Can you believe that? My Deputy Attorney General never heard of the IFA. Two House Reps. in Arkansas never heard of the IFA.”

  Who cares about the IFA? It’s an industry trade group. What role did they play in your decision? Had you even heard of them? Were you a member? Ever?

  “I have spent a great deal of time educating myself on franchising ”
  The problem is that you spent that time AFTER you invested and after being terminated. If you had spent a fraction of this time beforehand, or hired an attorney to review such an important contract, you might not be on here ranting about turkeys and testicles.

  I look forward to hearing which year’s FDD you reviewed and signed.

• guest,

  I never signed an F.D.D.!

  Again guest!

  Who the heck are you to tell me what I studied, when I studied it and where I studied it? Are you my mother? My father? My wife? Anyone of any significance in my life? Do you expect readers to believe that you knew what I read or when I read it?

  I will give you nothing but what Matco gave me! Grief!

  I have not posted hundreds of comments about how I was tricked or lied to!

  I have posted hundreds of comments about the fraudulent franchise which Matco sells. I have stated that I purchased a route from a franchisee 1)who did not have enough tools on his truck to meet the minimum to be a Matco franchisee. 2) Worked 3 days a week running a Matco franchise and 3 days a week running a second business at commercial location 3) Did not have 325 minimum customers on his current route 4) Was not making enough money to support my break even 5) the route I purchased did not have 325 potential customers on it 6) I was not allowed to preview my route before I signed my agreement 7) My route was set up to fail without me adding more shops 8) My District Manager told me I would have to add more shops to be successful that the weight of success would fall on my shoulders and that Matco only gives you the minimum to start a franchise 9) My new Regional Manager fired my District Manager and then sent a DM from Texas to try and get me to surrender shops. I refused 10) My Regional Manager came to my home in Arkansas and threatened me with the loss of my franchise if I didn’t surrender shops to him 11) My Regional Manager didn’t just do this to me but to another local franchisee who started the week before I did. He quit. His dad had just signed up and quit after a year 12) After being threatened I surrendered shops. How was I threatened? I asked my Regional Manager one question after dealing with his crap for a couple of hours. “Can I lose my franchise if I don’t surrender shops to you.” His reply “Yes”. 13) I surrendered shops to Rick Pena which would have left me with a “Not profitable” but viable route. Matco has NO RECORD of this change 14) They came back a SECOND time. Rick stated I gave him “Junk Shops” The result? I was left with a non-viable route of less than 325 customers. Rick told me he could give me three tool boxes as something to ease my pain and suffering. I told him I could buy all three of those boxes in less than a month with just the amount of money I was losing in time purchase accounts to the new franchisee. He told me I could take the boxes and lose the shops or I could lose the shops and not have any boxes. I was left with a non-viable route the new franchisee had WAY more shops than I did to start after I had been in business for over two years. 15) The first opportunity I had to add more shops to my route list on Moberly Ln. they were given to the franchisee I had just surrendered shops to after being promised them by my new District Manager. 16) I made the decision to take a stance against this call and invited my District Manager to my house where I convinced him it was wrong and he AGREED (with my wife present) and told me those shops would be mine. Later that week in preparation for the next week I called him and he told me it was “Out of his hands” “Nothing he could do about it”. 17) I called and complained to my new DM that I was getting calls from customers I had surrendered that were not getting service. A lot of calls. 18) I have some friends who live in Huntsville, Ar. (I play softball there and know a lot of them) who told me that they had a new Matco franchisee servicing their needs. Turns out it is the new Matco franchisee whom I had to surrender shops too and has DUMPED the majority of shops I was forced to surrender 19) I get a call from my DM who asks me to go back to J.B. Hunt (where Matco gives discounts directly to the shop guys and by-passes the franchisee) because franchisee I was forced to give shops to is no longer a Matco franchisee, 20) It is the Spring of 2009 and I am having a hard time paying inventory bills on time. I call my DM (Who has never given me an annual survey required by contract since he became a DM in 2006) and told him that I had lost a lot of customers due to shop closures and workforce reduction. He told me he had to take care of some new franchisees who were in new routes but he would do the re-survey I requested. 21) November 2009. I call my DM again because no survey has been completed. I told him I was fixing to lose one of my biggest shops (Bob Maloney Ford) in Rogers and that was equal to about 15% of my existing business. He told me it was the holidays and after the holidays he would get it done. 22) January 14, 2010. My DM sent an email, we had never communicated by email, which stated my purchase average was below the minimum of 80% of National Distributor Purchase Average and I needed to do something about it. I did not find the email till after I was terminated. I will also say, he knew I was aware of this because I made him aware of it. He had promised to resurvey and had not done it yet. 23) I received a separation letter on July 12, 2010. It said Matco had “good cause” because I was not at 80% of the National Distributor Average. I had around 154 customers when the minimum for a new franchisee is 325. I called Corporate to speak with Tom Willis, who was supposed to have an open door policy which he revealed to us when I was in training in Stow, Oh., and was handed over to Ernie Lauber whom I proceeded to tell about the empty promises of a route resurvey that never happened. He asked me if I had talked to my DM and RM. I told him they are the problem. He asked me if I spoke to my Regional Manager. I told him no and he told me to give him an opportunity to fix it first. So I called him. 24) July 26, 2010. I receive a survey from my DM. It is full of shops I never signed for, inflated head count in existing shops and a few shops that were not in business anymore. The survey and letter which it came with is completely false and does not represent one shred of the truth of my franchise. In response to the false survey I call Corporate, again and try to speak with Tom Willis. I am once again handed over to Ernie Lauber. I told Ernie that the survey was bull and if it didn’t get fixed I was going to hire an attorney and sue Matco for all the fraud that had been imposed on my franchise. 25) July 29, 2010. I receive a new route list with 405 customers on it. My DM apologizes to me and says his hands were tied and that he has more responsibility now. 26) November 2010. My DM pays me an unexpected visit while servicing my customers. The first words out of my mouth were “What did I do now?” He proceeded to tell me how wonderful I was doing and that he was surprised I was doing so well. I told him “See what I can do when I have customers to call on.” I asked him about the separation letter. He says “Forget that letter ever existed.” I asked him about the one year clause. He said “I don’t think you have anything to worry about.” I told him I had concerns because the holidays were coming and typically my business slowed down a lot. He told me “I will let you know before anything was to happen.” I told him I did not like what happened with the false survey and he said “That is behind us now.” 27) Feb. 11, 2011. I am at home with 4 ft. of snow in my driveway. I have been unable to run my route due to inclement weather. I have only worked on Monday for the last two weeks because of major snow storms on both Monday evenings. I get a call from my RM who informs me I am on three way with my DM. He informs me that I am no longer a Matco franchisee and that my accounts have been converted to one. I ask him why? He tells me I have gone back to my old ways. I ask him what my old ways were and he tells me the decision has been made and I will no longer be working as a Matco distributor. I pleaded with him to let me remain a Matco distributor and he told me “I don’t care what you do you won’t be doing it with Matco.” I asked him if I could sell in another Region. He said “I don’t care what you do you won’t be doing it with Matco.” I said “Is there anyway I can keep my Matco franchise?” He said “I don’t care what you do you won’t be doing it with Matco Tools.” 28) Two or Three weeks after termination date I lose my ability through MDBS to sell my inventory. 29) I drive all the way to Ohio to plead with Matco that a mistake has been made. I present my story and offer proof but they introduce an exit strategy agreement. An agreement which deems me responsible for the failure of my franchise and will make me get written permission from them to discuss my franchise experience and in exchange for my signature they will remove a 15% restocking fee which never should have been charged because I was FALSELY TERMINATED. 30) I cured my purchase average! In week 52 2011 my 13 wk. purchase average was $100 better than the National Average.

  This is not all of what you call the rant but feel free to pick on any of these issues. I have labeled these issues with numbers so it makes it easier.

  There are many more fraudulent things Matco does but lets just work with me for now.

• Todd:

  The fact is, you signed a bad deal with a bad company.
  You feel you got screwed, which is a logical result of a bad deal with a bad company.
  The way the system works is you have to resolve your business dispute in civil court or arbitration (which you agreed to), using lawyers each side pays for. That’s the system.

  As it stands, it’s not the government’s job to keep people from making poor investment decisions, to do their research for them or to have the taxpayers foot the bill for the due diligence the investor wasn’t willing to pay for themselves.

  From what I see, there were lots of red flags that you ignored or failed to pick up on.

  1) You took over a failed route. This was a risky venture because one or more franchisees had already tried to make a go of it and failed.

  2) You blindly took over a failed route without being allowed to preview it. This would have been a deal breaker for most people. The franchise agreement gave you rights to a route you never saw, but you signed it anyway.

  3) You signed a UFOC (basically same as FDD) that disclosed the number of Matco franchisee failures and terminations for the past 3 years. Current FDD shows 49% turnovers. The UFOC you signed surely had lots of evidence that franchisees were often churned or terminated, yet you signed it anyway.

  4) You said you weren’t comfortable with the franchise agreement, including the arbitration clause, yet you signed it anyway.

  5) When you finally saw your route you claim that it didn’t have the 325 minimum customers, yet you proceeded rather than killing the deal and rescinding the agreement.

  6) You said you only proceeded because you (believed) the IFA and the FTC were protecting you from bad franchisors, but you never verified that your assumption was correct.

  7) The UFOC you signed provided the contact information for failed franchisees, terminated franchisees, and current franchisees. The FTC recommends calling 100 of them. Either you didn’t call the terminated franchisees or you disregarded what they told you or else you would have known termination was a likely outcome.

  8) You chose not to hire an experienced franchise attorney to review the UFOC and FA, even though the DM asked you if you had. If you had, he/she would have pointed out the importance of numbers 1-7.

  9) You said you only devoted 3 days to Matco and 3 days to another job. I never saw Matco described as part time business. Could this have been a contributor to you not being able to stay in compliance?

  10) It seems likely that at some point the decision was made that you were uncooperative, unreasonable, abrasive and a pain in the neck and to get you out of the system. I attempted a civil discussion with you and was almost immediately called a testicle, a communist and a crap-stuffed turkey. I’d hate to see the emails or hear the phone messages Matco execs received!

  11) No one put a gun to your head and forced you to enter the risky world of business ownership. You took the risk cuz you thought you could make a lot of money. You learned an expensive lesson that the business world is not the monitored, well-policed world you thought it was. You made wrong assumptions and paid a steep price. Now you know better. No use wasting the rest of your life ranting about what everybody else did wrong, and blocking out your own culpability.

  America is a country of free enterprise. Americans have the freedom to enter agreements and business deals, good and bad, and reap the consequences, good and bad. You saw things as you wanted them to be, not as they were, and now you rant about the way you wish things were, but aren’t.

  Man up. Own up. Move on.

• So there you go Todd,

  Matco told you they MIGHT screw you based on the FDD

  You signed on the dotted line giving Matco PERMISSION to screw you

  And in the end Matco Tools DID screw you

  Again you are not alone, Matco does this to 200-300 Franchisee’s every year

  So in summary

  IT’S ALL YOUR FAULT

  LOL!!

  Matco Tools Fraud

• Organized:

  Todd bought a failing route sight unseen.
  He signed a contract he wasn’t comfortable with.
  He was given a list of failed or terminated franchisees but didn’t call them.
  He didn’t consult an attorney before signing a huge, life-changing contract.

  You’re right.

  It’s the International Franchise Association’s fault.

• Guest,

  Todd bought a failing route sight unseen. Just get me in court and on a stand and you will find out what I saw. What if I told you I viewed documents that I was not supposed to see before I bought my franchise? What if there were projected incomes presented?

  He signed a contract he wasn’t comfortable with. Who is ever comfortable putting their faith in someone else as a business partner?

  He was given a list of failed or terminated franchisees but didn’t call them. You don’t know what I did and didn’t do. Your a fisherman in a lake with no water.

  He didn’t consult an attorney before signing a huge, life-changing contract. Are you kidding me! Life changing contract? I thought I was purchasing a franchise and going to work for myself but not by myself. What is life changing about that. The only difference is I would be my own boss, RIGHT! Is that why Military Veterans make such good franchise owners? Because we are used to following orders instead of giving them? Is that why Veterans are the ones you go after? I bet it is a lot easier to get a tax payer backed SBA loan for a Veteran. I know how to work. The military taught me honor, discipline, self worth and how to FIGHT! I trusted my District Manager (Robert Tolbert). Robert Tolbert was the reason I bought a Matco franchise. Robert Tolbert sold me a non-viable route. He told me Matco gives you the minimum to be a franchise distributor it is up to you to own your business and make it successful. He told me the phone number on the side of my truck, showing up every week on time and reinvesting into my inventory would create myself a successful franchise. HE WAS RIGHT! My ROI reports show he was right! I took a non-viable route, spread it out over a 10 hour day after about 1 month. (I had multiple shift stops) and added shops which Robert Tolbert approved. There is no form in the U.F.O.C. which deals with proper shop add-ons. I received ZERO training in Stow, OH. on how to properly add a shop to my LOC. All I know is I was servicing customers I added that were approved by my DM to be MY shops and I was writing contracts (Matco approved Purchase Security Agreements) in them. Everything was fine till Tim Novak became Regional Manager. Tim Novak threatened my franchise in person. If I had done something that deserved what Tim Novak did to my business we would not be here today. I made Matco aware of what Tim did and Matco sided with Tim. This needs to handled by a judge and a jury of my peers. A threat is a crime. Creating false documents is a crime. Fraud is a crime. What did Bernie Madoff go to prison for? The same thing that my RM and DM should go to prison for. Matco and Danaher should pay too. They had the opportunity to fix it the right way and they chose to use the safety net created by the IFA and the FTC.

  When our government stops caring for the people America will no longer be America. I still have hope and faith in our system. I know it is not perfect but I feel there are still some Americans left that don’t want to see her go down to CORPORATIONS!

• It’s the International Franchise Association’s fault.

  I have never said the IFA is responsible for the fraud, lies, theft, threats and false documents created to falsely terminate me from my franchise.

  The IFA is responsible for allowing their members (franchisors) to commit fraud against the American people. The IFA is responsible for promoting criminal behavior. The IFA is responsible for coming up with NEW ways to screw franchisees.

  The franchising world could be made to profit all in franchising but the IFA and the FTC are allowing the franchisors to commit fraud. As long as noone reacts to fraud and crime in franchising the fleecing will go on.

  It would be different if I had not contacted all these organizations and they actually looked at what I was trying to show them but they didn’t and they don’t care. The FTC allows the fleecing of individuals. The IFA is nothing but the CRIME BOSS ORGANIZATION of franchising! Creating new things for its franchisors to slip in the F.D.D.’s and make it easier to slaughter sheep. Matco does not sell franchises to wolves only sheep. Creating organizations like Vetfran which make it easier to get tax payer backed SBA loans. Creating organizations like FranPac to influence our government in a Corporate way instead of in a way that serves the people.

  Tax payers should not insure that corporations still get paid when franchisees fail. If they were not allowed to profit through tax payers maybe mechanics who buy tools from franchisees would not be complaining about having no one to service the tools they bought with a life time warranty.

• If you are one of the 38 represented by Mr. Marks please file a complaint with the Federal Trade Commission today! Mr. Marks should have had all of us do this already! This would put an organization (Federal Trade Commission) charged to protect consumers from fraud on notice of what Matco is doing to franchisees. Many franchisees do not know the responsibilities of our government but the FTC is the primary organization who can go after a corporation who promotes FRAUD to the people!

  Most of us were victims from day one when we were sold a non-viable route which was doomed to fail. Others created a successful franchise, by adding more shops, only to have Matco use a contract that is not fully comprehensible to the franchisees who purchased the franchise to STEAL their customers. Even if it meant threatening them with the loss of their franchise to do it.

  Please! Go to the link below and fill out a complaint form. This should have been the first thing Mr. Marks had us do.

  https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en

• To the 38 victims of fraud whom Jerry Marks has taken as clients.

  I, as well as Tommy Cheung, Debbie Solko and Bill Gavlick brought you to Mr. Marks. Now Jerry is refusing to be my attorney any longer and will not even tell me how long I have to find another attorney or when my statute of limitations will run out. Jerry is removing those who could not settle under the mediation agreement (which is a crappy deal to begin with) so he can collect the almost $500,000 from the work of four people.

  Mr. Marks has done nothing to expose the fraud of Matco Tools but corralled the victims to make PROFIT from them. I understand that having your credit back, not owing Matco any money and moving on with your life seems like a pretty good idea but all your doing is SILENCING your voices.

  If we all speak and find a reputable attorney who will go after Matco for the right reasons and not take advantage of us because of an arbitration clause I feel very strongly that justice will prevail.

  Please at least file an FTC complaint before you sign any agreement which will prevent you from discussing your franchise experience which is going to be required should you mediate. This is why there is nothing in the F.D.D.’s when we were sold a franchise from Matco. Matco silences the masses and glorifies themselves as something their not through the media. Lies is what sells Matco franchises not franchisees.

  The FTC link is here: https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en

• Todd, Jerry Marks won’t do anything further for you guys?

• Jerry is dividing those who owe Matco money and those who don’t. We brought Jerry his customers now he is trying to kick me to the curb. He told me once the squeaky wheel gets oiled but I guess the squeaky wheel just gets tossed.

• I sent an email stating that he was still my attorney but Amy, his secretary, told me that my contract states he could walk away whenever he wants. We will just have to wait and see. I have been calling New Jersey all morning and have some homework to do this evening.

• To ANYONE who has ever been screwed by Matco Tools. Please fill out an FTC complaint form. Most of us were victims from day one with non-viable routes which produce no profit. For whatever reason go to the link and complain to the FTC. I don’t care if it was 10 years ago. Complain! It’s time for someone to get off their ass and do something about this problem.