MATCO TOOLS Franchise Report Alleges Distributor Churning

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• I’m a Matco Distributor and have had my business for 7 years. I don’t think that you can really hold Matco totally accountable for this “churning”. Much of the process in recruiting distributors is up to the District manager being subjective and honest in interviewing and training applicants. I happen to have one, if not the worst manager in the business. This business cannot be runned successfully by one person. If you don’t have the support of the company and other distributors you will not succeed. And as far as the district manager caring about your success and preforming his job with your best wishes in mind, that is not always the case. The one piece of advice and/or information that I tell anyone thinking of doing this is it is not a one person job. In order to be successful you have to have at least two people involved. In mostorder cases this means having a spouse that is ready to put time into the business also.

• Exactly, Matco wants to sign Distributor Teams

  Meaning – both the husband and wife sign the contracts, are financially committed – and TIME is required of BOTH to support the business

  It is particularly difficult if the spouse already has a job…………

  Something to think about.

  I am the distributor and my husband has a full time job. However; he completely takes care of truck maintenance, helps in assembling carts, helps loading and unloading stock, unpacking stock, and processing warranties. There are bank deposits to be made and boxes of returns or warranties to be shipped.

  It most assuredly is at least a two person job.

• Stick to the important stuff Matco has issues but how the oil gets changed or how bank deposits are made no one cares. This is not a job it is a business.

• Yes, it is a BUSINESS not a job, and it is a
  BUSINESS THAT TAKES TWO

  if you’re married, make sure your wife is aware SHE too will be putting in some hours

• Takes time management not two people. Every one is different but this gig is not a two man show. Matco has issues and needs to improve and alot in some areas but stop with the trivial B.S.

• Matco needs to do a better job in weeding out these people

• I was a Matco distributor from 2000 to 2004 can I get in on this lawsuit ?

• I was a distributor from 2001-2005 and owned two franchises. As with most companys Matco is all about making money at any expense. When a distributor starts to have problems you’ll find most of the management will vanish and start to look for your replacement. New dealer means new inventory and increase sales to the company. Matco’s practices as a distributor leaves the business are far from ethical. I took a substantial financial hit because of these practices. Use caution any time it comes to the company losing some of it commissions (returns, credits, receivables, etc. ) I’d find somewhere else to invest your time n money!

• Make sure you have a business plan and have it reviewed by SCORE at the SBA.
  I did I am a Matco distributor and I like it. Most of these people that post on here couldn’t fight their way out of a wet paper bag. You will find them camped out on Wall Street they call themselves the 99er’s

• Matco sold me a franchise knoing that I would be leaving a career that paid my more than ninty percent of the existing Matco distributors. And I was completly clear that my goal with them was to make more money.
  It is obvious to anyone involved with Matco that the company is churning distributors, and I am suprised that anyone would question it.

• “It is obvious to anyone involved with Matco that the company is churning distributors, and I am suprised that anyone would question it.”

  Jimmy K:

  As obvious as it is, the Matco Old Boys Club will deny it to the death, no matter how much evidence and how many sad stories are placed at their feet.

  They work night and day posting here (http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/) because they want everyone to believe that everyone who failed was lazy and everyone who succeeded were self-made men. The truth is they lucked in to old agreements, solid routes and kissed the right butts at the right time.

  But they sound kind of foolish trying to argue the ton of evidence that points to the obvious.

• Jimmy K wrote: “Matco sold me a franchise knoing that I would be leaving a career that paid my more than ninty percent of the existing Matco distributors. And I was completly clear that my goal with them was to make more money.”

  According to former Matco Franchise Sales Manager Charles “Chuck” Bergen:

  “Finally, upper management would turn a “blind eye” to making of income representations by FSSs and DMs.

  “The usual manner in which this occurred through year 2007 was by telling a distributor prospect that “Matco does not permit us to make income representations, but why would you want to join Matco unless you can make more than you are presently earning”. The clear message sent was an income representation that the prospect will earn at least what he was earning in his present job and likely much more.””

  Sworn statement http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/

• Guest never owned a franchise, boutght his lazy son one, and his son failed.

• Wow that is strange the only people talking trash here are the ones that failed and dont want to put the blame on there selfs. You wont hear from the ones that are doing good cause they got a business to run and dont have time for crazy sites like this that just want to bash matco.

• 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
  ?

• God Todd give it a rest I have read your manafesto like three times. potentials look at what is put on your plate if it looks good to you eat it!!! I did and I continue to succeed after 13 years with 325 potential.

• Go Ahead read my BLOG then ask yourself if this guy is full of s&*%. Cary Devitt said he has been in business 13 yrs and always had 325 potential. HE started with 325 and through a rough economy he has maintained 325. If you believe him I got Diamond Mine in my yard and I guarantee you will find them. I charge $5,000 a shovel and you can’t bring your own. If you don’t find any you must not be digging far enough or in the right spot but they are their I promise.

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• See Cary Todd thinks that he is the king of tool sales. Had 700 plus headcount but couldnt even get 200 on the books. Thought that Snap On owned Fluke so he never sold Fluke, even though Danaher owns it. Could you imaging being his Snap On competitor…laughing all the way to the bank.
  So if he couldn’t do it, there is no way anyone else could do it. But he does like to copy and paste his story doesn’t he.

• Wow Todd really……. I have read your what ever you call it three times. Do you have two surveys 10 years apart that show you have a sucessful diamond mine in your back yard? I have 2 surveys one from when I started and one from my ten year three years ago that show 325 and 325 + 10. I still have both surveys. Situations being different I wouldnt have a problem showing you but there are terrorists in your ranks and I have no desire to have my customers brought into this.

  That whole fluke thing is funny, to save you further embarrasment fluke also aquired raytek in 02 another fine Danaher company. Bet you feel kind of……exposed right now dont you. Have a nice night Todd

• I got an 18 ft. freightliner and money to burn look out Arizona warehouse Distributors here I come. Doesn’t it piss you off that Danaher the company your enslaved to sells to warehouse distributors CHEAPER than what you can buy products from Matco for. IR, Lisle, OTC, Fluke, Etc.

• Todd ?
  A lot of talk and a small truck wow !

• I just sold my 26’ft Peterbilt got to pay my attorney somehow.

• Humm no response from Todd about Carys ” made up customer count” lol

• So guest17 you expect everyone to believe that 13 years ago Cary started out with 325 customers and when ALL businesses started to become affected by shrinking economy that Cary was somehow unaffected by the economy and somehow grew to 335 in 2009? Hello! Do I need to respond to some stupid, ridiculous statement like that. There not a person of integrity anywhere that would believe that kind of Cary BS.

• Hello Todd it’s all on paper!!

• CHRIS, YES YOU CAN GET IN ON THE LAWSUIT, CALL JERRY MARKS AT MARKSANDKEIN LAW FIRM.

  ANYONE CAN GET INVOLVED, THANKS CHRIS

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• Todd, How coincidental. I too was in your district and was done the same way. They put me in a route that was doomed to fail in a very short time. I had the Mtn Home route and after a major truck breakdown, slow economy, and major shops closing, I was (forced) out of the business after only 2 years. I loved what I did and most (95-98%) of my clients were happy even though I had to build it back up because of the last distributor. My major mistake was to truct Anthony as well. When things were looking bleak, I was abandonded by Anthony and was “black-flagged by other distributors. I couldn’t move toolboxes to other distributors that Matco wouldn’t take back for some odd reason. Now I have tools, toolboxes, and a huge balance with Matco, since they would only give 40% of inventory price for credit. Now all I get is when are you going to start paying more to get your bill paid.

• New post on Todd’s Veterans Against Matco Franchises Facebook page. Comments encouraged.

  MATCO TOOLS: Veterans Against Matco Franchises Launches Facebook Page

• Todd,,it strikes me as strange,,that you are the only one,who has actually had the balls,to lay the cards on the table.I know for a fact,that 75-80% of the Matco dealers in my area have voiced their complaints about this company,,and of that 80%,,,40% are no longer in business.I am not,,nor have I ever been,,or ever will be,,a distributor,all because of the horror stories I have heard from any of these distributors.Any of the respondees on this forum,,that take defense of this company,,are simply put,,LIARS.None of the trucks that serviced this area were doing poorly,,in fact,,when you walked on the trucks,,they were always inventory rich and from the reports of the drivers,,they were doing great.And then,,one day,,they were gone.When I inquired as to where they had gone,,I was told that Matco had disolved their distributorship because of poor performance.Now,,,in my situation,,there was definately nepotism going on,,because there was no way that all of a sudden,,all the drivers were related,,and I mean by blood,,brothers,uncles,sisters,,families,,,all had a brand new franchise,,and they stayed in business even after showing very poor performance compared to the others.One of my distributors had a fire on his truck,,one month after that event,he was released because of poor performance,,Oh,,he wasn’t down for a month..he was only down for about a week,,but he was doing his best at getting caught up and he had done that,,but not at the rate Matco required.Long story short,,Matco is ripping off,,not only the customers,,but the drivers as well.Todd,,I would suggest contacting the Attorney General of Arkansas if not the United States.This kind of business is against the law in several different catogories.

• I am amazed that so many of us buy these franchises of any tool brand. The hours we put in for the potential reward is dawnting. I see several posts where the dealers are saying you better have your spouse help you and put in some hours. Are you kidding? your spouse better go get a job. The average succesful tool dealer makes $50,000 – $60,000 per year after expenses if they are not on credit hold from choking on their tool purchases. We can not afford to pay a spouse. Last time I checked $50,000 a year is job, not a business. Matco dealers join http://www.mobiletooldealersassociation.com and lets pressure all tool companies to make better opportunties for us all.

  Snap-on is now starting routes with 200 potential customers. Thats potential customers. Thats not a of lot of potential in my mind. Join together as one and make a difference. To join is free. We need each other. Join now. matco, mac, cornwell.

• Tony,

  I called the Attorney General within a month of being terminated and also sent an email. I recently did it again citing different reasons and again was told it was not a matter for the Attorney General. It seems that Government seems to have a STRONG influence in Franchising! Government sponsored programs like Vetfran get the troops together so they can be subjected to these CHURN and BURN Franchises. I am not surprised that Government officials show no interest in RIGHT or WRONG! Bottom line!!! Someone is making money in politics and it is not what the tax payers are paying for these politicians salaries.

• Mobile tool dealers please join.. http://www.mobiletooldealersassociation.com. Stop letting your franchisor take bully you and take away your profits. Let your voice be heard.

• Todd. Great point of view. all these tool companies are in the churn and burn business. If you go to mobiletooldealersassociation.com and comment about your expereince this association can eventually grow to represent us legally. As you will see my expertise is in Snap-on. Snap-on is the mother ship of tool comapnies and has been sued more than all tool companies combined. Add your comments and exxpertise to the matco section and maybe we can help all dealers. Would love your point of view for Matco. i am sure we will find we are one cause falling into similar traps. I have an attorney very familar with our problems and the more dealers we get to join us the stronger we become. In Snap-ons report to shareholders they list the biggest risk to shareholders is dissatisfied dealers and lawsuits. This is the same for all these companies.

• Jim,

  I am a member as of about 1hr. ago and I believe what you are trying to do is the ONLY thing that can be done to fight these enormous corporations. I have taken on the role of investigating and gathering information to fight Vetfran and the IFA Organizations who have lobbied our Government to give TAX CREDITS which EXCEED the Veteran benefit. Vetfran gets the soldiers to their conventions then turns the SHARKS loose to feed on the Vets who are unsuspecting of the FRAUDULENT opportunities companies like Matco bring to the table.

• Jim
  I saw a post earlier by you somewhere about the claimed turnover rate being zero with Snap On even though dealers are coming and going every couple years in a particular route…I believe what Matco and Snap On are doing is as long as another dealer is put into a particular franchise area within a certain time frame of a terminated distributor then they can claim that franchise has a zero failure rate even though 4-5 victims have come and gone over a 8- 10 year period or so.

  Matco legally only claims a 15% failure rate based on a 1 year term when almost everyone survives at least 1 year, all they are required to report is the first years worth of terminations for every distributor…extrapolate that out 3-5-10 years and the number of terminations is astounding.

  So again it’s all in how they manipulate the numbers…

  nothing how it used to be 25 years ago…

• Organized.

  The point is we can point out to the world these companies are cooking the books to take advantage of nieve potential victims. these companies claim to be ethical. We can beat these companies in the public eye. In the early ninties. Connie chun with 60 minutes ripped snap-on’s heart out and cost them 100’s of millions. Let shout to the world how these bullies play.

  Bring your knowledge over to mobiletooldealersassociation.com. We need to have experts from all companies going after these bullies. This association can grow to a legal entity that fights for us bringing lawsuits and so on to make our businesses worth while. this is not a site for failed dealers but a site for all dealers who want to change and affect the system.

  This forbes report is going to get big. What an embarassment for forbes and Snap-on. All will have to be retracted when it is called out.

• http://www.entrepreneur.com/franchises/matcotools/282564-0.html
  Letter I posted to their Editor tonight…………

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

  PLEASE READ the accusations against Matco Tools!

  They take money – loan money/federally insured loan money from new distributors. Set them up on NON viable routes. Knowing they will fail within 2-3 years, and simply start the process over.

  Matco requires franchisees to meet a National Purchase Average and does not allow outside buying -YET distributors can buy the SAME PRODUCTS from other sources, sometimes even purchase Retail – FOR LESS THAN THEIR COST FROM MATCO.

  November 29, 2011
  UnhappyFranchisee.com has received a report alleging that Matco Tools, a division of Danaher Corporation (NYSE: DHR), is actively engaged in what’s known as “franchise churning.” “Churning” is a form of franchise fraud wherein a franchisor sells franchises it knows (or should know) are doomed to fail, collects payments, then resells the same franchise once the previous franchisee fails.

  I think is terribly UNFAIR you keep promoting a franchise opportunity that amounts to nothing more than a scam.

  Thank you,
  Debbie Solko

• I have been in businass with matco for 2 and a half years now I am losting everything.

• Where are you located Richard? You have an email address so I can contact you? I may be able to help you

• All I have to say in regards to receiving help. BEWARE! There are many wolves in sheep clothing.

• I’m no sheep..

• Here is 6 years of CHURN! You tell me how Matco has a 36% failure rate over 9 years when their failure rate of franchisees over 6 years is more than 100%?

• Sean,

  Tell me this. According to the information on your web site Matco Tools had a 36% SBA loan failure rate from 2000-2009.

  I am wondering how that number is so low considering the number of franchisees who have been churned in and out of a Matco franchise.

  I think your SBA loan stats are completely false!!! Some research would prove that number should be more like 90%+.

  Would you like to challenge me on that?

• Relentless writes: “I think your SBA loan stats are completely false!!!”

  They aren’t “our” SBA stats. They are the numbers that the Small Business Administration releases to lenders. The numbers we cited are directly from The Coleman Report, and are the same as posted on BlueMauMau.

  Remember, 38% only reflects loan defaults of those who qualified for SBA loans, it’s not a random sample. It’s also a loan default rate, not a failure rate. Matco franchisee Villano paid off his SBA loan but still failed. He would have been a failure, but it wouldn’t have been reflected as a loan default:
  http://www.unhappyfranchisee.com/matco-tools-lawsuit-arbitration/

  Some have contended that the SBA is sloppy in their compilation of franchise loan defaults, so it could be understated (or overstated).

  Churn rate is better calculated using the data from the Franchise Disclosure Documents. The analysis above of the Matco 2011 FDD states: “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.”

  Relentless writes: “Some research would prove that number should be more like 90%+.”

  Feel free to do that research and report your findings here. The Marks & Klein data is 2 years old now. It would be interesting to see how the numbers differ in the 2013 FDD.

• Funny how admin. can shut your comments down just like MATCO on their facebook page. I guess this site is to protect franchisors by exposing things disgruntled ex-franchisees find that could hurt the franchisor in the LONG RUN! Like Presidents who lied in videos when they were Vice Presidents or District Managers who actually own NMTC Inc. dba Matco Tools.

• octamnorom/relentless/etc.:

  If you want to keep posting here, you need to comment with a single name, and answer your emails.