SNAP-ON TOOLS Franchise Complaints. The Snap-on Tools mobile tools franchise has been plagued with franchisee lawsuits.
The 2011 Snap-on Tools FDD (SNAP-ON TOOLS Franchise Disclosure Document (FDD)) lists nearly 40 lawsuits by franchisees in the last ten years, including a class action lawsuit (settled in 2006) that cost Snap-on Tools $38 million in settlement fees, attorney fees and other costs.
According to some, the franchise litigation forced Snap-on to address and fix the problems with its franchises, and become a better company.
However, others contend that major problems with the viability of the franchise opportunity and the franchisor’s attitude toward its franchise owners still persist.
jim lager writes:
They(Snap-on) does take advantage however of new naive dealers if allowed…. Snap-on loves fresh meat.
I have 5 [Snap-on] franchises i am trying to sell off franchises and there is no value what so ever in my business. Snap-on does everything they can to inhibit the sale diminish the value… I don’t know many 13 year veterans in Snap-on running great numbers.
Judge writes:
they have the power to put you in business and can take you out. I been a tool man for some time now. When I talk to old timers that been in 25 years or more they all tell me the same thing. The company lost touch with what we are doing out here. It’s all about numbers and that’s it… I think these tool companies got too comfortable letting other people like ourselves do all the hard work and they just collect money.
Are you a Snap-on Tools franchise owner or former franchise owner? Do you have franchise complaints, or advice for prospective Snap-on dealers you can share?
Or do you think the Snap-on Tools franchise is a great opportunity with a dedicated franchisor?
Please share a comment below, positive or negative.
ARE YOU FAMILIAR WITH THE SNAP-ON TOOLS FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.
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View Comments
hey happy snappy,I hope your healthy because you didn't include health insurance,if you are single and living home with mommy and daddy,you are probably paying at least 7200k a year and if you are a family man figure about 10k to 12k add that into your equation.
i guess you guys are right. ill just keep doing what im doing.
Health insurance. Yeah that was a big one I missed. Thanks former.
There is good news. Join mobiletooldealersassociation.com. By joining we can work togethervto be more profitable, voicing our concerns with old or new policy's, forcing snap on to help us sell our routes for more money, advice from experienced dealers that will help you earn more money, etc etc. I think happy you should join. Myself and Jim would love to help you make more money and get your money's worth on your investment.
this is a long time practice with snap-on... check out this link
http://www.justice.gov/opa/pr/1996/Dec96/584civ.htm
if they did this to the government,just think of what they can do to you!!!!!!!!!!!
get you divorced(snap-on wives website)
ruin your credit,bankrupt you, any one else have any ideas?
great family owned business, as they like to portray!!!!!!!
Former,
Great link you sent over. That will get posted on the tooldealersassociation.com.
That $891,000 snap on paid will only be a drop in the bucket when they see what will be coming for them. :)))
Happy Snappy need a new accountant
Happy snappy
In all seriousness. I hope you are not paying taxes on those numbers. all my trucks are running between $10,000 and $14,0000 per week. My business is paid for. I don't pay income taxes on a number like you have. You need to get an accountant that specializes on tool trucks. Ask other dealers. I am not trying to to slam you but there is no way a guy who still owes money on the truck, tools and r/a doing $10,000 a week is making over $100,000.00. good job by the way. $10,000 a week is something to be proud of. You are making a living and a decent one. But it won't accumulate wealth like it should. Learn from Snap-on and a few years after your business is paid for give it back to snap-on and do something that makes real money.
In addition you are above average. Average dealer does $8000.00 week.
I also forgot one thing that is taking out of your profit. Credit card fees. I pay roughly $300 a month through payment tech which snap on is getting a cut and that comes out to $3,600 a year. So you made a little less after those expenses.