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MATCO TOOLS Franchise Defenders Speak Out

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 ).

Matco Tools Defenders Vehemently Deny Allegations

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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179 thoughts on “MATCO TOOLS Franchise Defenders Speak Out

  • matco2

    Sorry typing needs help. Letting Snap On get a box sale now and then is a good thing keeps the bad ones in. If he goes out because of the 200 head count they mite get a good one in and it wpuldn’t be so easy.

  • matco2

    Stupid phone

  • MATCO#1

    I hear you, one of my snap on guy’s is on “tilt” I have sold 8 toolboxes to his zero in the last year at one of my dealerships. The techs say he only comes in every other week now, there for about 10 minutes and gone. I spend 2 hours there everyweek, everybody has a tp account along with there PSA.
    3 guys I collect 50 on Tp and 50 on PSA, the others its your typical 30/30 split, one guy is 120 a week. Who ever says when they go on a psa you never get them on TP anymore is a fool.

  • Cary Devitt

    Amen matco1&2! its great to be able to control the strenght of your competition, giving them just enough rope to hang themself…then cut them down so they can do it over and over again. Love being part of a winning team that allows us to rule our market!

  • matco2

    A new customer with a Psa is a good way to test drive a.customer before you het to much on him. If he will not pay Matco he will not pay you. All 3 Snap On guys I have are under a dozen boxes total. 3 mac and 2 Cornwell. Guess who got the rest.

  • Former Distr

    I’ve sold hundreds of Matco Tool Boxes. NOT ONE of THEM says “Made in the USA”.

    Snapon puts “Made in the USA” on every USA Made box, but Matco does NOT.

    Why doesn’t Matco put the words “Made in the USA” on their boxes?

  • MATCO#1

    Former lie again, everyone of mine says made in USA

    The snap on trade in I have says made in Canada what are you talking about

  • Former Distr

    That is a lie Matco#1, they only list the plant in Jamestown, NY. It does NOT say MADE IN. THis issue was raised within MDAC years ago.

    The last sticker I looked at 30 days ago, said Made in Jamestown, NY [with] globally sourced parts.

  • Matco2

    YOUR POINT IS??????

  • Former Distr

    MATCO#1 you commented on December 21st, 2011 7:27 pm , that all Matco Boxes are made in the USA. That is a misleading statement,

    Yes, they are assemble in Jamestown, with foreign made products, mainly the steel. unless you can prove otherwise. jamestown at its best probably never employed more that 50 people.

    I would have been proud to sell Matco Boxes made in the USA with American Steel. THATs my point. Unlike Snapon that actually manufacture some their products. Matco only has a toolbox plant, everything else is outsourced or via DTG.

  • MATCO#1

    I am proud to sell made in the USA Matco tool boxes just sold one on Monday.

    Slides are made by accuride in Mexico, box made in Jamestown NY.

  • Matco2

    I would bet that there is a mix import and US steel. This is traded as a comodity as anything. Like tires or anything with a rating steel is also rated. Most supplers buy on the open market. They run on margens very tight margens…. Steel companys swap all the time.

  • Former Distr

    The MDAC issue raised, was “why does Snapon put Made in THE USA on their product, but we do NOT?”

    That was raised by customers and distributors had no answer. Customers believe what the see.

  • MATCO#1

    Former, not an issue all boxes have made in USA, and like I said the snap on on my truck has made in canada

  • Matco2

    Most techs don’t even look at the tag. Some don’t even know why I need to look at it to warrent parts on the box. I would hope MDAC didn’t spend too much time on this.

  • MATCO#1

    You notice Guest never said where his route was, or if he ever attended expo, or any sales meeting. I guess we all know he was not a dbr.

  • MATCO#1

    Matco Tools is a 60 year old organization focused on supplying professional grade tools, automotive service and diagnostic equipment to professional repair technicians in the automotive, truck, marine and aviation industries. We distribute our products through a system of Franchised Distributors. Our Franchise features:

    * No franchise fees
    * No royalty fees
    * No advertising fees
    * 5 week Training
    * Local training and field support
    * National Brand
    * Computerized business system
    * Exclusive Territories
    * Pre identified potential customer base
    * No employees
    * Home based business
    * National conventions at world class resorts
    * Financial assistance
    * Modest overall investment
    * SBA approved Franchise
    * IFA member
    * VetFran sponsor

  • Former Distr

    Matco#1, why would a DM go back to selling tools on the Truck?

    Better Money? Too many failing distributors in the district?
    Or the experience I’m witness to- Your fired! or you have the option to go on a truck…

  • MATCO#1

    Recognized as the “Best Automotive Franchise” by FranchiseBusiness REVIEW (based on 2006 Franchise Satisfaction Survey), Matco Tools is one of the top franchise opportunities out there. That’s because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start your business. Our award winning franchise program provides you with a business process
    that will help you generate revenue from day one.

  • MATCO#1

    Financing Options
    At Matco, we understand that starting your own business can be financially trying. With our low start-up costs, we can offer a variety of options to fit your unique financial needs. You may also qualify for financing through our in-house financing department or an SBA Bank Loan.

    Additional Support Includes:
    Matco Distributor Business System (MDBS)
    Matco Customer Service Support Team
    Matco Distributor Advisory Council (MDAC)
    National Advertising
    Racing Support

  • MATCO#1

    Outstanding Franchisee Support
    We offer a variety of programs to support and help your Matco business grow, including:

    Premium quality products
    Lead the industry with New and Exclusive products and monthly promotions
    Custom financing programs for your customers
    Field management support
    Customer support center
    Technical support staff
    24/7 online order placement

  • MATCO#1

    Franchise Satisfaction
    Recognized as “Best in Category -Automotive Franchises” by FranchiseBusiness REVIEW (based on 2009 Franchise Satisfaction Survey), Matco Tools has rated as one of the top franchise opportunities out there. That’s because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start and run your business.

  • Former Distr

    Matco#1, why would a DM go back to selling tools on the Truck?

    Better Money? Too many failing distributors in the district?
    Or the experience I’m witness to- Your fired! or you have the option to go on a truck…

  • MATCO#1

    Former, several reasons why DM’s go back to the truck. When I first took the job I was told by several people you will be back, remember you became a MATCO franchisee to be your own boss.
    MATCO has been very good for me and my family. Nobody forced me to go back, in fact my boss tried to talk me out of it. My RM is absolutely the best boss I have ever had, and the most honest guy I have ever met. I still talk to him several times a month. I learned a lot both as a person and a human being from him.
    Me personally, I just got tired of being a DM, maybe someday I will go back but for now, I like being home every night with my family.
    unfortunately it was about a 70 hour a week job, so I figured if I was going to put that much time in, I was going to do it for me and my family.
    I was not a fan of the Tech ed program either, and honestly that was pretty much it for me. When MATCO put the burden on the DM’s I didn’t like it. I knew I couldn’t change it, so back on the truck I went. I always liked being a distributor so it was a pretty easy decision for me.
    As a DM you see how successful guys run their business and how unsuccessful guys run theirs. I learned a lot from both, and use that now. I currently run about 40% higher now in sales compared to the first time being on the truck. The routes that I took over, one had been vacant for years, this one the previous guy moved and iit was in the city I lived so the decision was easy.

  • Former Distr

    Matco#1, thanks for the response. I’ve worked for a corporation for 20+ years and can appreciate your reasoning.

    I know Matco has tried several things for their DMs and I really believe they need to get back to basics before its too late…

    Cheers…

  • MATCO#1

    Didn’t have too many failing distributors. See former you guys see a seperation as a failed distributor. That’s not the case.
    When I left as a dbr and became a DM, the next year I was in the FDD as a seperation…why, because I seperated as a dbr.
    This business is tough, a lot of hours and work to be successful. A lot of former tech’s come into this business because they are tired of turning wrenches and think its going to be easy, and it’s NOT.
    I had some distributors that didn’t like collecting money all the time so they quit, had a few that got divorced so they quit, some dbr’s die, some DM’s die, seen both. Some guys do it for several years then use it as stepping stone for another business. Then unfortunately some just run the business into the ground and blame everyone else except themselves.

    Former, I am sure you know this business is a lot of work, i think you said at one point you said you are an independant now. More power to you, I think that’s tougher than having a name on the side.

    I didn’t see too many DM’s that were about to get fired offered a chance to be a distributor. I can’t remember any in my region. Most of the time, it was you have a choice, quit or be fired. If a guy was a bad DM, why would you want him as a distributor? I wouldn’t….would you?

  • MATCO#1

    Good night.

  • Former Distr

    In the last 10 years, of the Distributors that left my district, no one common denominator for the reason of separation. Yes, most had a drop in business which caused them to rethink their line of work. I can’t speak for the others and their reasoning.

    I have seen a very good DM forced out and he chose to go back to a route to continue his long successful career. And then I see a very poor DM continue (with numerous complaints against him), and not understand why.

    In my case, I did not sue Matco, nor do I want to. They violated the contract by not acting in a consistant manner nor giving me a fair playing field. My definition of success was different than my DM’s, and his inability to assist me along with other moral business issues and Matcos support of him caused me to walk away.

    yes, I bought outside and yes I didn’t meet the 80% NPA. But my business was successful and I support Matco and spoke good of the company. The reality of this business is there are customers happy to by Matco, Snapon or others, but there are also those that will go down to the local Harbor Freight Store in my town and buy there. I provided what my customers wanted, I supported them in a way that they knew I would be there ‘tomorrow’. And I am still there.

    Matco, like all corporation have to answer to the share holders, private or public, but they also answer to their customers, employees and communities. They, like so many other companies have lost their way…

  • Todd A. Peterson

    Over 465 Matco Franchises available right now. Why?

    Here is what Matco did for my FRANCHISE.

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

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

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

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

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

    Wednesday-3 shops 68 customers

    Thursday- 4 shops 76 customers

    Friday- 7 shops 48 customers

    Grand total of 33 shops and 328 customers.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Now! You smart intellegent people can probably find something to smart off about I am sure. But anyone who has a brain can figure out this is one SCREWED UP FRANCHISE
    ?

  • Snapon1

    I read some of this crap and most of it is crap. I been a tool dealer for 5 years. Some of those years with Mac and the rest with snap on. For the record snap on only charges dealers $102 a month franchise fee and $26 a month for computer software. That’s it.. Snap on also doesn’t charge any fees for writing contracts. I know matco and Mac does.. I do over $600 k in sales with a 40% profit margin. I do that with 240 head count of customers and 185 of them on the books. There are zero snap on routes available in my district or any of the surrounding districts around me. I know there are plenty to go around with matco and Mac. Last time I checked there wasn’t all these lawsuits going on with snap on like you hear about match and Mac. Bottom line is I am sick of the snap on bashing because I don’t any of you have touched my numbers and need to worry about yourselves. Btw I put 4 match guys out of business in my 5 years…

  • Snapon1

    Snap on also has also shown 15% increases in dealers businesses 2 years in a row. I don’t think matco can say the same!!!

  • jim Lager

    I can’t disagree with you about Snap-on being the best of all the tool companies. I have been with them since 1992. Made a lot of money. Snap-on does a lot of things right but don’t be mistaken they do a lot wrong also. All new and old dealers need to know how to deal with certian things within Snap-on dealer system. I am starting a web site call snapontoolsdealerassociation.com. It will be a place where dealers can help each other by sharing ideas. It can be used to bash Snap-on or it can be used to help dealers increase profitablity. It is up the dealers. Lets help each other and also give notice to Snap-on where to improve in certian areas. site is under construction so give it some time. You can also find on face book. Please go on and like the site.

  • Matco2

    Snap on 1,

    The problem are the very few…… I sure snap on has them too…..

    Been doing this les than you but have one snap on out and one more on the way out.

    The ring leader of the law suets I sure will coming to snap on too.

    He is suing Mac now to test the waters. With Black and Decker not happy with Mac they are the easy target.

  • jim Lager

    Believe me Snap-on has been sued a lot. More than you can possibly know. Some suits for good reason some not. Owning a tool franchise can be a great way for a young guy who wants to be independant to learn to run his own business and even possibly prosper. There are pitfalls that can be avoided that I have learned over the years by being both a field manager and a multi franchise. There are other dealers who have also overcome these pitfalls. Working together we can make Snap-on be a more prosperous opportunity for the franchisee. We dealers have to keep Snap-on feet to the fire though. I plan on teaching good and bad about Snap-on and in the end make it a great business one can retire on with lots of cash. Snap-on will need to make some changes but they won’t unless all dealers are educated.

  • snapon1

    Jim you are 100% right. Snap on can be a better company. Your association is a great idea. Running a truck is hard and takes alot of work and sacrifices. I do also think the tool company has an upper hand on dealers and really can control the success and failure of each route. I say that because they put you in buisiness and have the power to take you out. Financing is a key issue too and credit lines. Our customers for the most part can’t afford our merchandise. So you need a good finance company in place and a good trade account system that works. I find all companys lack in those depts. Most tool trucks are empty. There are many reason for that but I am sure little credit sales, small dealer credit lines and a 10 or higher tp or ra turn will play a roll in a truck being empty. Empty trucks means less sales for the dealer which then turns into less cash flow. Less cash flow means less money to restock the truck. It goes on and on but you get my point. It isn’t alway’s the dealers fault for failure. The mothership needs to have programs in place that work. If not the little ship sinks. I think this SBA loan fraud against Matco was the first example of how the company already made it hard to sell tools. A big loan that looked easy to pay back on paper and harder in reality. So you guys need to stop bashing eachother and realize everybody came on board to sell tools for one reason. That was too make money and have the dream of being your own boss. Just because other people may sasy something you dont agree with doesn’t make it right to pick at eachother. I think every situation is diffrent and alot of people did get screwed and lost everything ( which isn’t fair) and others did well. It doesn’t make it right for anyone to judge a persons feelings on a situation there are not 100% aware of. Good selling and good luck to everyone….

  • Matco2

    Jim,
    If you would???? What is Snap On’s stand on what Matco calls National Purchase Average?

    To keep this short 80% of that average is required to continue with your franchise. There is plenty more to it than that but what I assume is after all the dust settles the numbers would be close Matco / Snap on.

    I see it as if you are not running at or better than that average your not making money…

  • snapon1

    I don’t think snap on will bother you if you stay current on your invoices and service your shops….

  • matco2

    Ok thanks Just wondering.

    600k good numbers.
    Your counter parts in my area are not putting up those numbers.

  • Cary Devitt

    [note to ADMIN redacted]

    Sorry to butt in matco2 snapon1 and jim

    Todd here is my reply in reference to me being a charter member:

    What???? I reviewed my franchise 3 years ago…..I have to abide by the same guidelinesthat new starts do. At least what new starts had to abide by 3 years ago.

    You were misinformed by the WMD.

    All I am saying is that you can make a great living with a 325 start and after my 10 year survey I was still within 10 potential customers of the 325. I have been in the top 50 for the past 5 years?????? I am not a charter distributor”13 years”

    [note to ADMIN redacted]

  • Snapon1

    I work hard every day in my route. I tote and promote items everyday to my customers. I offer sales to all my customers and give everyone the opuurtunity to buy snap on. Following a simple system helps me generate over $10k every week in sales and collections. I hit bumps on the road with snap on which does happen but I don’t take any crap and stand my ground. Having a good relationship with a great lawyer helps along the way too.

  • jim Lager

    Good point about lawyer. there is no doubt Snap-on is the best tool dealer opportunity. They(Snap-on) does take advantage however of new nieve dealers if allowed. They don’t like to be sued. Snap-on settles a lot because they have lost their tale in court over the years. There is up and down side to Snap-on. Hopefully the Snap-on tools dealer association will be up and running Monday, Jan. 2nd, 2012 so we can start helping dealers maximize their potential within Snap-on tools.

  • Todd A. Peterson

    Snap-On 1 don’t answer any more questions because the OBC does not like your answer.

  • Todd A. Peterson

    Cary you are full of more stuff than a stuffing stuffed Christmas turkey.

  • Todd A. Peterson

    Snap-On guys!

    What is the average length of time that ALL Snap-On franchisee’s have been in business? You know all Distributors divided by the years spent in business=?

    If I had to guess Snap-On would be around 13years per Distributor.

    Matco would probably be 6 years.

  • Snapon1

    Todd what is an obc?

  • matco2

    Snap on 1 wait till you get Todds answer you’ll love it.

  • Todd A. Peterson

    Snapon1

    OBC=Old Boys Club

    You See! You know them too! They are spread out all over the U.S. You scratch your heads and wonder how does this guy get this much on his route list to cover.

    You think to yourself if I had this much territory to cover I would be a top Distributor too.

  • guest17

    Wrong again Todd,
    Head count.. Here in our small town we have 3 Matco distributors, and 4 snap on.. While the three of us do pretty damn good with our 325 apiece (975 total), that leaves 4 snap on Dbrs with 225 apiece and only (900 total)!! So we have 4 competitors that are trying to make a living on less than what we Matco Dbrs make on 3!! And youd never guess, but the same snap on route has changed distributors 8 yes 8 times in the last 13 years!! So where is the “NON VIABLE” head count here??

    So whats wrong with this picture Todd?? That’s right, nothing if you’re a self motivated Matco distributor..

    Even though these are cold hard facts, some people would rather let failed Matco Dbrs give advise on going into business than let successful ones share what they know..

  • matco2

    Todd
    Snap on 1 dose 600k a year by as he said;
    Toting
    Seeing all his customers
    All on 240 head count

    I run similar and see about 375. On track to pass that next year. Doing the same thing.

    He also said he put 4 Matco guys out. What do you think they aren’t doing.

    Truth be told I have had 1 Snap on guy 1 mac go out.

  • Todd A. Peterson

    Good point Matco2

    Let’s look at my experience.

    I have seen, besides myself in 6 1/2 years, 4 STS (Superior Tool Sales), 2 Cornwell, 2 Mac, 4 Snap-On and 6 Matco start and leave or leave their franchises.

    Snap-On guy I ran up against was Robert (Bob) Demers who used to have a plus truck with Robert Garza. He sold his truck and gave Garza his own franchise. They both left Snap-On not servicing their customers because they couldn’t buy tools in 2008. Bob filed bankruptcy and within a few months Matco (Tim Novak) hired him to be a DM in San Antonio, TX. See I no alot about Bob his Dad retired from selling tools for Snap-On and Bob ended up getting his start from his Dad which is great. I wish my dad would have gave me the truck and tools to start my own franchise. But I had to have good credit and equity in the properties I owned to start. Bob already had DM experience with Snap-On and hated it told me “I’ll never do that again.” “The truck is where I belong.”

    So why become a Matco Distributor?

    All I know is after I received a Separation Letter from Matco Bob is in a truck within 2 months selling tools where Tim Novak forced me to give up shops that I had secured with the DM who got me in the business.

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