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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View Comments
Matco#1
If you are unhappy with Matco I can take your complaint and submit it to the board for review.
Matco#1
My relationship with Snap-on started in 1992. I have had many good experiences with snap-on. A tool franchise in general can be a great way for a young person to learn how to run a business succesfully. Unfortunatly these tool companies get greedy and become bullies at times. I believe these companies are very well suited at protecting their assets to the detriment of dealers. I hope the association webstite I am creating will not only open the eyes of all dealers but force companies like Snap-on, Matco, Mac and so on to be better and provide long term value to the franchisees. If I can get both dealers and managers of these corportations to share their ideas on this site it could grow and help the industry. I am wiling to share my experience good and bad, I hope others will as well. Beware there will be some bashing of these companies. I have concerns and I know others do as well. Hopefully the outcome will be positive.
I have been with Matco for 30 years as a distributor and a DSM and back again. I've seen many people come and go and in almost all cases it relates directly back to the person behind the wheel. It is a personality and service based business. If you come up short on either you will most likely fail, or if you work less than 5 days, same thing.
As others have said it is a damn tough business but to be self employed you have to have personality, honesty, perseverance and be willing to work harder for yourself than you have ever worked for a employer.
I have been able to sustain a very comfortable lifestyle working as a Matco distributor. I have attained many goals by working hard and if there is something I want I just work a little harder.
In my 30 years I have faced many challenges, lost two wives to cancer, had 7 separate surgeries and lost a lot of time but Matco stood behind me through it all.
Matco is not perfect and I've had my gripes in the past but everyone is not cut out to be in business for themselves, it's just a fact of life.
As someone once told me:
When you are pointing the finger of blame at someone you have three more pointing back at the possible cause to the problem.
Point away Denny! If you are going to Expo come see me at some point! I will show you what Matco did for me and let you decide if I am a Failure! I kicked ASS at selling tools and even when Matco let me get reduced from 328 unviable customers which I started with to 154 customers when I was given my SEPARATION LETTER I was still paying my bills and making a LITTLE money.
If you read my early posts then you remember I told you I had been begging for some support for a 1 1/2 and I was PROMISED a RESURVEY. So, when I called TIM NOVAK (RM) after talking to ERNIE LAUBER who told me to call TIM first and give TIM an opportunity to FIX it. What does TIM do? Send Anthony Kramer out to do a BOGUS SURVEY claiming I had WHAT? 328 customers to service but I was only servicing 67%.
This is how Matco SUPPORTS DISTRIBUTORS!!!
I have been with Matco for 5 yrs and have noticed certain methods that are impacting my business negatively.I am also one of the distributors that does not have a typical route- if there is such a thing.The majority of my customers are illegals or they have poor or no credit so I must carry their TP on truck. The previous 3 or 4 dbr in this route failed.My previous experience was in sales to automotive dealers etc.I chose this route on my own,spent my life savings on this business and came in debt free, no one tricked me or lied to me to get me to invest in a Matco franchise.I do not believe Matco tries to take out dbrs, but I believe that in their zest to make profits BAD decisions are being made and I hope that this forum will surely have some positive effects on management.Corporations all must answer to shareholders,however we must not lose sight of what has made Matco a major player in the tool market ---DISTRIBUTORS we are their most valuable asset!
Wow! Good comment Robert. Would like to talk to you by email if I could might be able to give you a little info about Matco. Look me up on Facebook! I am the only Todd Peterson wearing a softball uniform red and white. Look forward to talking to you.
I have been a Matco Distributor for 14 years. I also have a FB site with 700 distributors on it. We focus on helping the newer guys get better in the business. some make it and some fail, but the most common denominator in the ones that fail is that they are not "people" oriented. In the tool business, customers have to like you to get a good relationship going and a new customer is earned. I have seen all the accusations that Matco sets you up to fail. that is just a big lie. The tool business is not an easy job, but after a few years, the rewards come. If you think you can be handed a list of calls and become successful over night, you are wrong. You have to build the business one customer at a time. Some people just can not admit to themselves that they failed, so they play the blame game and sue. Sad.
Getting ready to sign with Matco. next week. Lost my job this past April after 20 years and thought this would be a great opportunity for myself. Anyone have any suggestions on how to come out and make this very successful from day one. Route is excellent, I surveyed myself and 7 out of 10 wanted Matco and could not wait, only competition a snap-on guy getting ready to retire.
David,
The best thing you could do is turn around and run! If you must get into a mobile tool company though I strongly urge you to wait until the Snap-on guy retires and buy his route. Snap-on would be your best chance at success! Mac & Matco both have a horrible turn over rate with most ending in BK. Most will never make it to there pay off before they fail and if they do they got there living on $50k + in credit card debt. Read the thousands of comments on here. They are the stories of real people taking the time to warn you so you don't end up in the same hell!
David, Be cautious about these rogue franchises. If the route is good, it will be split in two in no time and you will lose all. You can get in at will but cannot get out without bankruptcy. The franchiser has no interest in your well being and wants you to die. That is because then they can put another new franchisee with new franchise fee, which is much more than what you will pay in royalties.
If you insist on getting hurt and pay for it too, open a childcare franchise like Discovery Point or Legacy Academy. You will be tortured with overwork without pay and will lose all your 20 year savings pretty quickly. They guarantee it.