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
Cary Devitt wrote "who cares where the tools are made"?
Seriously? Who cares where the tools are made?
Guess who wrote this:
"Matco Tools, its 800 U.S. employees and 1,250 U.S. Distributors, makes and distributes tools for the professional mechanic. Our customers have a very strong preference for “Made in the USA” products. Therefore, Matco Tools strongly opposes the commission's proposal to weaken the standard for ·Made in USA· claims... Weakening the standard will ... deny Matco Tools the marketing advantage attributable to Made in USA products."
Anybody?
THOMAS N. WILLIS, PRESIDENT, MATCO TOOLS in a letter to the FTC:
http://www.ftc.gov/opp/madeusa2/c600.htm August 6, 1997
A lot has changed since 1997, I agree with Tom then, Cary now seems price and service are more of an issue now 14 years later
Anon,
Good quote, mind you its 4 years old not really relevent to my comment. What control do I have where my inventory is made, the one thing that I do control is the level of service after the sale. Of course I would like to have a stronger mix of made in USA product but in this game you play the cards your dealt.
Thank you
sorry 14 years
Cary how are those china boots working for you ? Went back to Red Back I bet even though they aren't loyal to Matco oh wait they were loyal to Matco for years but not anymore just why is that???????? Made in china means nothing to me as long as the price reflects it. Look at the 1/4 swivel sockets apx $37 ea at one time said USA not anymore, same with pliers wrenches ect ect ect. The cost for Matco went down and the profit went up buy buying overseas but not only did the cost for distributors go up it keeps going up ie the new 3.2$% price increase. I caution you before you slam me my PA is great my PROFIT is even better but WTF ( WITH OUT GREAT DISTRIBUTORS MATCO WOULD BE NOTHING MORE THAN AN OFFICE IN STOW). The problem with most of these people is they never should have been recruited by Matco or the local popsicle company they are helpless, But that does not excuse Matco of ripping us off every chance they get I am getting freaking tired of it. You know exactly what I am talking about. You really need to goto the ISN EXPO no need to buy just go. That said I'll bet you the cost of the trip you will buy the deals are just that good!!!! See you in Vegas
TLMAN
Fine with redbacks, fine with ISN, appreciate the leveling competition that brought them back to a realistic net. So you know, Tom @ redback has been persuing other retail outlets for the past 10 years: Cabelas, Genesco (largest retail footwear company in the US.....I worked for them for 11 years) events at or around expo put some fire in his britches thus ISN....good for him! great product everyone should try a pair on....its a two way street do you think that was all he wanted....matco's market get real every business wants to grow. Didn't care for the Shield boots but thanks for the assumption.
Got the email on the 3.2% also read everthing that was stated after that....materials....shipping....fuel.....etc. yes its the same every year, not going to say anything else.
Have no desire to slam you on your PA and im sure your profits are wonderful and 100% believe you about great distributors, happy to say myself my brother and some really good friends are a part of that club.
Not going to comment on the "helpless" you can relate this to what we do on the truck everyday and im not saying thats bad or unethical.
Would have attened ISN's expo this year but grumpy pregnant wife had a problem with 2 unsupervised excursions to florida. My ISN guy said travel expenses are covered for next year as well as Matco for Vegas. So see you at one of the two ill buy you a beer....not sure who you are though. email address is at matcotools.com/carydevitt.
thanks
Cary
Tlman, you are correct Pre sell one box, pays for expo, not only that if you are in top 200 you get a couple nights free.
ISN EXPO Flight paid for and 2 free nights. The top 200 in matco is great just not for me and not in area just won't work. I'm okay with the top 600 and a nice Margin.
Cary,
"your ISN guy said travel expenses are covered...
Your cheating... You should be terminated for violating the contract. It would only be fair to the others that have been terminated for the same reason.
???