Matco Tools franchise – distributor program is under fire. Failed & failing Matco Tools mobile distributors claim that they are victims of a callous and unethical investment scheme that sets them up for failure. Yet Matco Tools also has its defenders. The comment section below is for Matco Tools and its supporters to share their opposing views, and show their support for the Matco Tools franchise opportunity.
Our post MATCO TOOLS Franchise Complaints sparked more than 1000 spirited, often angry, comments in less than a month, an UnhappyFranchisee.com record.
Central among the criticisms of the Matco Tool franchise is a high failure rate and allegations that Matco intentionally “churns” up to half of its distributor population in order to replace them with the fresh investments of new distributors (See MATCO TOOLS Franchise Report Alleges Distributor Churning).
Complaints also include a frighteningly high SBA default rate for Matco Tools franchise loans (see Failure Rates of the 10 Most Popular Franchises) and allegations that Matco colluded with TD Bank to fraudulently get distributor loans they knew were doomed to fail (see FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud ).
Both on UnhappyFranchisee.com and a Matco franchisee Facebook page, Matco defenders have shared a different view than the angry detractors.
Veteran Matco distributor Kevin writes: “Matco is not a perfect company. None are. You must use your own common sense in any business dealing. I have been a distributor for 22 years, and have experienced none of the above problems. I am self employed, and I buy what I want from Matco, nothing more. They do not run my business, nor force me to buy anything.”
Another distributor Scott writes: “Matco is not the evil empire that so many are making it out to be, but they are definitely out of touch with what we go through… the complaints you and others are voicing are nothing new. If you do a little research you will find the exact same thing happening in Mac and Snap On throughout the years and it’s almost word for word. This business is damn tough…”
None of the supporters thus far have provided unqualified praise for Matco Tools, but many say Matco is the best choice in a tough business segment.
Jay writes: “I have been with another tool company before that would make all these complaints seem very trivial and chose to switch to Matco over 11 plus years ago all as a distributor. I am not saying they are perfect but they are the best choice out of the 4 major tool companies…”
Some object to the characterization of “terminated distributors” (a term used in Matco’s Franchise Disclosure Document) as being synonymous with “failed distributors.” Some point out that Matco Tools franchisees leave the system for a variety of reasons
Jason writes: “What I saw as a district manager was guys would become matco distributors because they thought it was easy, and matco would set up a route for them and they thought it was instant success. It wasn’t I saw high performing distributors succeed and fail. I had distributors get divorced and fail, I had 2 distrbutors in 1 year die, I had distributors become district managers, all of these are examples of terminated distributors, so the 36% fail rate is inaccurate.”
ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE DISTRIBUTOR PROGRAM? DO YOU DISAGREE WITH THE MATCO TOOLS CRITICS WHO ALLEGE IT’S A SCAM? SHARE A COMMENT BELOW!
Also, feel free to read & comment on these related posts:
MATCO TOOLS Franchise Complaints June 8, 2011
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29, 2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November 22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15, 2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
To contact the author and site admin, email UnhappyFranchisee[at]gmail.com
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Greetings,
Soon there should be numerous posts where hopefully if you are looking into a Matco franchise you can make an informed decision. Matco tools is the #1 mobile tool franchise. If you are a current distributor hopefully we can use this blog as a tool to help make Matco better than they already are.
[Comment moved to https://unhappyfranchisee.mystagingwebsite.com/matco-tools-franchise-complaints%5D
The Matco Franchise is the only way in todays society I have found to allow my wife to stay home with my children. I hope that we can provide the more positive side of the Matco franchisee, and some tips to share.
guest #2
I agree 100%, I have been a distributor for 13 years and thru the up's and down's of our economy Matco Tools has provided a strong backbone for me to be a sucessfull distributor.
Anybody looking to become a distributor must know up front that success in this business is not given, it must be earned. It takes alot of hours and alot of hard work.
It's funny you facts and stats vs. People that failed in the business,.
Former distributor who didn't get renewed after 10 years because he was half the purchase avg and didn't want to call in all of his customers, Debbie who can't figure out why she is failing but refuses to work full time. Most small business owners work 6 days, but not her she works 4 days.
Tommy cheung who claims he was a top 50 dbr, then top 2, then top 5 of his district, says he can prove it, but when asked doesn't provide facts...funny can't find a Tommy cheung on my list of top 200 for Matco in the years he speaks of.
Looking at the information on a potential franchise, with 325 customers, how do you see all of them ?
I live in a rural area and I know the general area, I would think my driving time each day would be as much as 2 hours somedays, maybe more.
I think most shops have 3-5 people,some have 1 or 2, and i think one dealership has 12. but how much time do you spend with each person? I was told (and seen) that distributors show and demonstrate tools each visit.
Is this manageble? With kids, I wouldn't leave till 8:30am.
I have been a dist for almost 2 years, im also a mdac member. i have been in the auto busness for more then 30 years.This is by far the best job i have ever had. People need to understand. to make it in this or any other busness it takes hard work and commitment. I have made it as a master tech,service advisor and manager. I did very well at all of them. It takes hard work to make it. Nothing is given to anyone for just showing up. You have to get out there and work hard,and you may make it. But do not blame anyone, but yourself, if you do not make it. It's up to you and only you.Not everyone can or should run a business. It takes strong money management skills,good business plan, hard work,commitment,common sense and lots of LUCK,
Lenny, to answer your question have been a dbr for 11 years in a rural area. If you are going to leave at that time you would need to work a lil late to accomplish that. You need to plan a minimum of 6 min per customer to do a quick but thorough job. That does not count driving. The best way would be to drive the prospective route for drive time and then plan on how many techs are at which shops. It is a challenging but very rewarding job and could not see myself doing anything else. Hard work, good management(time and money) will reward you greatly.
I hope this info helps, please post any other questions you have and I will be glad to answer them.
Have a Great night
Lenny, check the other site first, matcoboy , never said top 50,it was top 200.yes I have my cheap looking gold medallions.I made it in the top 50 for several weeks throughout my time , go back and check, matcoboy, if you know how.Don't forget to call Jerry, you will fail soon.
Thanks Guest2,
I am reading all I can about the franchises, I used to be a mechanic years ago. ANd I'm trying to make sense of the business. (always wanted to be a tool guy, just couldn't afford it till now)
I remember both Mac adn Snapon coming in to the shop, we had 8 guys. but snapon would spend about 15 min then leave, I never had time to business with him. The MAC guy would be there sometimes an hour, he would wait for you if you were busy.
So I'm trying to understand the profitability? of the tool business. I know everyone in my shop usually owed the MAC guy. All i Could budget was $20 a week for tools.(and sometimes Icouldn't do that) so I'm trying to understand howmuch you make in aday.
I saw on the other site, that purchases are $3400 (I assume a week), correct me if my maths wrong. So if like me everybody pays $20, and average $100 an hour, work 9 hours for 5 days thats $4500. So profit is $1100 a week.
Am i on track?