SNAP-ON TOOLS Franchise Complaints
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 the Snap-on FDD “This complaint set forth various alleged deceptive practices, sought to represent a class for current and former franchisees and independent dealers, sought injunctive relief, and contained counts for alleged violation of RICO, state statutes prohibiting deceptive trade practices, deceptive franchise practices and consumer fraud, common law fraud, breach of contract, breach of fiduciary duty and breach of implied covenant of good faith and fair dealing.”
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.
More on the Snap-on Tools franchise:
Per lawsuits. 40+ is just what is listed in the FDD. Go backover 25 years and there are probably over a thousannd lawsuits against snap-on.
Selling your business?? I am at least a little pissed off at Snap-on because i am trying to sell one of my franchises to one of my dealers. Believe me there is NO BLUE SKY in your business/job. Let me tell you why. snap-on has something called a schedule 1. This lists everything you as a selling dealer has to sale, Inventory, accounts recievable, truck, used tool, discontinued tools, computer, and other things you might sell a dealer. The schedule is bullshit because Snap-on credit will only finance 2 things on that schedule. Inventory and accounts recievables.
The kicker is the maximum accounts recievable or R/A they finance is $55,000.00. So if we do a good job and put a bunch of money on the street, turn it well, Snap-on rewards us by saying they wont finance it when we go to sell it.
by the way you can’t go to a bank for financing because if you do, Snap-on tools, not Snap-on credit puts an all encompassing 1st lien against your business. NO BANK WILL TOUCH THIS AND TAKE A 2ND POSITION. Snap-on does this to keep routes cheap and bring in young nieve guys with little education to run volume. Snap-on protects themselves.
Everything Snap-on does is contrary to us gaining wealth. their training and even volume discount is designed for us to sell high volume at low profit margins.
Understand all my routes do between $10,000 and $14,000 a week. I am very succesful and always have been. snap-on only looks out for us when we force them to.
I was a field manager in the 90′s. I will tell you you will never hear a discussion in Snap-on asking themselves what Snap-on did wrong when a dealer is failing. Here is how the discussion always goes. “What can we do to get rid of this guy and put another one in his place.”
I would like to hear from the Veteran dealers, Snap-on, Matco, Mac anyone. These Franchisors are bullies. If we don’t stand up to them they will walk all over us. If you want to retire someday or maybe your route has shrunk over the years and you can’t get any help then you need to stand up and confront them. Snap-on doesn’t like me much because I have grown to a size that I can stand up to them. they don’t like it but I have had success getting Snap-on to change the rules for me where they don’t for other dealers.
Does everyone understand when you buy a route from Snap-on they apply your business credit to your personal credit. No bank does this. Snap-on does it so you can’t go buy anything. they want to tie you up and keep all of your money going to them and no one else. Your debt to income ratio destrys your ability to get even the smallest loans.
Snap-on will own you for years. Oh yeah, Snap-on has pre payment penalties on their loans. Who does that today. No one but Snap-on. Again Snap-on has you tied up until they want to cast you aside. When they cast a young or veteran dealer aside it will not be pretty for that dealer.
If you havent noticed I don’t intend to give my succesful business away. My goal is to force Snap-on to participate in building real value in our franchises that we as dealers can prosper and some day sell. Snap-on will have to listen to us if we all stand up to them.
Jim you bring up some great points. Snap on tells there new prospects ” buy a franchise, be your own boss, own your own list of calls, one day you can sell those list of calls for a retirement”. I guess selling a route isn’t that easy? So Jim is snap on only interested in dealers buying tools from them and don’t care about dealers ra? Do you know any dealers that did get blue sky? How much did they get? I can say one thing you are not your own boss running a truck. I say that because if you don’t see all your stops the phone rings from your BM. You don’t buy enough merchandise you get another call from your BM. Your sales numbers change another call from your BM. Your paid sales change another call from your BM. It goes on and on. My point is if you are your own boss then why is someone calling me asking me what’s going on? Just like fixing ratchet heads. I spend about 15 minutes a ratchet and fix about 12 ratchets a week. That’s about 3 hours a week. I get zero for my time fixing these stupid things and I have to invest in about $100 in ratchet kits. Just like tool box slides. I must do about 1 set of slides a week which takes me an hour to do. So now that’s 4 hours I’m working for free. So they say we need to do $10k a week to do well. That is 2k a day which comes out to $250 hour if you calculate 8 hour day being in shops and not commuting time. So if I waste 4 hours a week that is $1000 a week. In a year that is $52000. In 5 years that is $260000. In 30 years that is 7,800,000. Holy crap… That’s alot of money lost. If a dealer spends more time then me every week just fixing ratchets and replacing tool box slides is out of more money. Now that time doesn’t include replacing bits, screw driver blades and repo tool boxes. What I think is being a snap on franchisee is actually an undisclosed employee for the company that doesn’t collect a paycheck.
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I got some good things for you Jim. How about snap on sending us a product today then we try returning it the week after and it is non returnable? Or things like diagnostic tools non returnable at all? I got another one, how about a customer writes you a check to pay snap on credit you go ahead send the money because it has to be in asap and then you get a returned check for no funds? Then you have to chase customer to get paid again because you already paid his snap on bill with your money?? I will post more later. I like to hear comments from other dealers on what they think…..
I have another that may create some attention. You get loaded up on tools from managers saying you have to buy because its a great deal. You say well maybe I shouldnt because my tool bill is already high but I hate to turn up a good deal. Well shortly later your account is over its limit and now you cant buy any tools and now you cant even service your customers on tools they need replaced. You go ahead and send a new return to get your acct in order and decide to send back all those great deals that really just got dumped on you. Can you believe it takes me sometimes 6 or more weeks to even see the credit on my statement… How the hell is that gonna help me at all if my acct was in trouble 6 or more weeks before that??? And the funny thing is you tell managers ” maybe I shouldnt buy these deals because my acct is already high..”. They say ” Its ok just return tools if that happens and we will work with you” I dont think so because no manager has even offered to help me with returns and 6 or more weeks for a new tool return credit… Come on give me a break… I could have walked it there punched in the #’s myself and walked home a few times over and I live hours away by vehicle to my distribution facility.
I am still new with snap on. I am young and have many years of work ahead of me. I think snap on has the best tools in the world. I like what I do but there are some things that need to change. I think with some fine tuning this company could be the best franchise in the world. I like to help out and this association idea you have Jim looks like a great idea.
Dealers
go to http://www.snapontoolsdealerassociation.com
This is a forum of dealers sharing ideas of increasing profits as well as a forum that will make Snap-on stand up and notice we won’t take their abuse anymore. Buy a Snap-on franchise if you want a 12 hour a day job, 6 days a week that pays maybe $60,000.00 a year. Add on the risk of loaning your money to every Tom, Dick and Harry and then in the end when you attempt to sell, Snap-on devalues your business to the point of financial loss. Go to this web site to share and help make a difference.
Hey me franchise fooled.
I don’t know of anyone getting blue sky. In fact Snap-on controls your ability to get outside financing by placing a 1st lien on your business. 2nd. Take a look at
Snap-on’s schedule 1. This schedule lists everything one can sell with their franchise. There are only two items however you can get financed. 1. NEW tools and 2. R/A as long as it does not exceed $55,000.00. Snap-on will not finance anything more than that. Not your truck, not your computer, not your used or discontinued tools. Not anything. Of the $25,000.00 required as a down. Snap-on gets it all. Not one bit can go towards anything else. Do not plan to retire from Snap-on.
Hey all,
This sucks, as you have invested so much, I am not a franchisee, but can you use alternate financing that needs no credit for your customers. Or as it seems, snap on controls everything, and if you are stuck with only there financing, you guys are in a pickle and I hope you all good luck.
Brad
Today, Snap-on Tools franchisees sell far more than just wrenches. They offer over 22,000 products, including hand tools, power tools, diagnostic tools, tool storage and shop equipment, but the way they sell is much the same. Once a week they bring their “mobile stores”–trucks filled with their products–directly to their customers, which include car dealerships, mechanics, marinas and airports.
That is really what the trucks do every week. My problem is the 5% of the business we don’t understand and what burrys dealers. Jim and unhappy bring up some great points. I always felt going into a tool franchise was a bit fishy. Now it looks more like a scam. Lucky for me and the rest that understand. Shame on you snap on. Joe Johnson wanted to innovate tools too make jobs easier for techs, not screw people. The man is probably turning over in his grave.
I continue to get a laugh from the chants of “Matco is #1!”
One of the Matco Old Boys Club actually uses it for a screenname!
Take a look here: http://www.unhappyfranchisee.com/mobile-tool-franchise/.
All of the tool companies have tons of complaints, have been sued or are getting sued. The whole category sucks for distributors. If you are talking about most online complaints, Matco is definitely #1.
How moronic is it to claim to be the best of 4 bad choices, especially if you aren’t even the largest, oldest, or sell the most?
Snap-on is considerably larger, has more distributors, sells more tools, has a longer history and has a much stronger brand name, both in terms of recognition and respect. Snap-on is clearly bigger, stronger than Matco, but still it sucks and has been sued even more (though Matco will catch up soon. Thanks to Jerry Marks).
Think of it this way, bragging that “Matco is #1″ is like running down the halls of the hospital yelling “Cancer is #1! Cancer is #1″
“Wait a minute!” says Heart Disease. “We kill more people! We’re the leading cause of death. We’re #1!”
“No way!” says CANCER#1. “A magazine we pay says Cancer is #1. They give no rationale or reason, but it’s in a magazine so Cancer is #1!”
It doesn’t really matter whether heart disease, cancer, stroke or respiratory disease is #1, its wise to avoid ALL of them.
The same could be said for the leader Snap-on, Snap-on wannabe Matco, Mac or Cornwell.
So which is the best mobile tool franchise?
Independent Dealer is #1!!!!!
These FDDs are pretty lengthy, but there’s some interesting stuff in them. I am reading Snap-on’s FDD, specifically the completed franchisee litigation of the past decade.
http://www.unhappyfranchisee.com/%ef%bb%bfsnap-on-tools-franchise-disclosure-document-fdd/
It looks like franchisees prevailed in every one of the 26 or so settled cases. Check out these amounts:
Mike Barnes v. Snap-on Incorporated (OR) Snap-on agreed on January 30, 2007, to pay Barnes $87,500.00
Tim Barnes v. Snap-on Incorporated (OR). Snap-on agreed on January 31, 2007, to pay Barnes $75,000.00
George Brenski v. Snap-on (IL). An award was granted on June 28, 2004, in favor of Brenski for $80,000.00 plus fees and expenses.
Luis Canaveral v. Snap-on Incorporated (FL). May, 2007 Snap-on paid Mr. Canaveral $82,500.00.
Darin Canetti v. Snap-on Tools Company LLC, Snap-on Credit LLC, Bart Wignall, Michael Montemurro, Nicholas Loffredo and David Pence (NJ). December 2007… Snap-on paid Canetti $240,000.00
Brian Casey v. Snap-on (NJ). Award granted on July 13, 2004, in favor of Casey for $314,608.00 plus arbitration fees.
Scott W. Copperthite v. Snap-on Tools Company LLC (CT). December 2007 Snap-on paid Copperthite $60,000.00
Ronald DeSantis, Matt Setser, Shawn Dickmeyer, William Bradley Freeman, Scott Factor, Scott Ingenito, Aaron Reeves, Anthony Hobby, Dwight Lankart, Richard Fortuna, and Paul Vladyka, on behalf of themselves and others similarly situated, Plaintiffs, vs. Snap-on Tools Company LLC, Snapon Credit LLC and Snap-on Incorporated, Defendants. Snap-on recorded a $38,000,000.00 pretax charge in the second quarter of 2006 representing its best estimate of the costs to settle this matter, including attorney fees, costs and expenses.
The total that Snap-on paid franchisees in just these 8 cases totals $38,829,608
Snap-on’s FDD reveals that in the next 8 cases of franchisee litigation, franchisees won every case also
http://www.unhappyfranchisee.com/%ef%bb%bfsnap-on-tools-franchise-disclosure-document-fdd/
The next 8 cases, Snap-on had to pay disgruntled franchisees $898,000
Michael Dittfield v. Snap-on Tools Company July 16, 2004 Snap-on paid plaintiff
$15,000.00.
Mark S. Foster v. Snap-on and Snap-on Credit LLC May 18, 2005… Snap-on paid Plaintiff $60,000.00.
Francisco Franco v. Snap-on Tools Company and Snap-on Credit LLC (NJ). Snap-on paid Franco $500,000.00
William Bradley Freeman v. Snap-on Tools Company LLC and Snap-on Credit LLC, Michael Montemurro, David Spence and Bart Wignall (FL). June, 2007 Snap-on paid Mr. Geisel $210,000.00
Gary Geppi v. Snap-on Tools Company LLC, Snap-on Credit LLC, Michael Montemurro, Rich Meyers, Michael Ward, Rich Fitzhugh, Gary Huether, Frank Steffens and Jeffrey Howell (NJ). June 22, 2005 Snap-on paid Geppi $25,000.00.
Jeffrey Goldwasser v. Snap-on (NJ). April 25, 2005, pursuant to which Snap-on paid $50,000.00 to Goldwasser and his wife, Abbeye Goldwasser
Paul Harz v. Snap-on Tools Company and Snap-on Credit LLC (NY). October 1, 2005, Snap-on paid Harz
$23,000.00
Justin Hemker v. Snap-on (MI). March 1, 2004, in which Snap-on paid $15,000.00 to Hemker.
That means that the total of the first 16 cases alone amount to $39,727,608 that Snap-on had to pay its franchisees. Gosh, that’s a lot.
Do you think that these disgruntled franchisees have any idea about this? Do you think their attorneys know about these settlements from a competitor with basically the same model and franchisees with very similar complaints?
Continuing to read the Snap-on FDD (gosh, this legal stuff gives me a headache!). If I’m reading this correctly (no promises!) reveals that in the next 8 cases of franchisee litigation, franchisees won every case also
http://www.unhappyfranchisee.com/%ef%bb%bfsnap-on-tools-franchise-disclosure-document-fdd/
In these 9 cases Snap-on had to pay its unhappy franchisees $734,500
Perry E. Littlejohn and wife, Betty H. Littlejohn v. Snap-on Tools Company. December 2006 Snap-on paid the Littlejohns $50,000.00.
Peter LoRe v. Snap-on (NY). June 29, 2005, pursuant to which Snap-on paid LoRe $45,000.00.
Kevin Meehan v. Snap-on Tools Company (NJ). Snap-on paid Meehan $315,000.00.
James Miller v. Snap-on (CA). October 2, 2002, pursuant to which Snap-on paid plaintiff $53,500.00.
Christopher Palmerini v. Snap-on Tools Company and Snap-on Credit LLC (NY). June 6, 2005, paid Plaintiff $50,000.00.
Michael T. Rowley v. Snap-on Incorporated (OR). July 2007 Snap-on will pay Mr. Rowley $150,000.00.
Lee A. Smith v. Snap-on Tools Company (IL). September 29, 2006, Snap-on to Smith of $30,000.00.
Bryan Van Curen v. Snap-on Tools Company LLC and Snap-on Credit LLC (NJ). July 15, 2005 Snap-on paid Van Curen $23,000.00
George Wutz v. Snap-on Tools Company LLC, Snap-on Credit LLC, Michael Montemurro, Robert Jaros, John Doe Field Managers 1-20, Steve Schmidt, Dave Cimermancic and John Doe Branch Managers 1-10 (IL). December 12, 2005 Snap-on paid Wutz $18,000
If my reading is correct, that means that Snap-on has paiid out more than $40 MILLION to unhappy franchisees like Tommy, Debby, Todd, Former and the rest of this gang! Yikes! That’s a lot of money!
What’s weird is Snap-on was always called #1 until they started getting pounded by all these lawsuits.
Sure seems like the courts are symapthetic to unhappy tool franchisees!
Sure seem like these lawyers have had a lot of practice successfully suing tool companies on behalf of unhappy franchisees.
Do you think that’s what’s about to happen to Matco? Gosh I sure hope not.
I’m sure MATCO#1 and the OBC gang can explain that the Snap-on situation was NOTHING like the Matco situation is now.
Thank god there are just a handful of unhappy Matco franchisees out there, or this could be a real situation. Especially as it seems that the franchisor DIDN’T WIN 1 CASE (at least by my layman’s reading).
So I have a long history much of it good with Snap-on tools. There is no doubt that opportunity exists with Snap-on. What makes Snap-on successful is that 95% of what Snap-on does is great. What I have learned over the years is that 5% of what Snap-on does ,takes advantouge of dealers and limits their abilities to grow and prosper while that same 5% enriches Snap-on.
Because of this I started a website. http://www.snapontoolsdealerassociation.com.
Because of this website a representative came and met with me at the kickoff and we agreed on some things and disagreed on others. He asked me why I didn’t use this forum on the Snap-on tools discussion board. My answer to this is it needs to be public for the whole world to see. I want this website to be a place that encourages two sides to the story and effects positve change to make, if possible, Snap-on tools a better opportunity for dealers.
My Biggest problem with Snap-on is that Snap-on has limited my ability to sell my business for any value. I have many solutions that need to be discussed. I hope other dealers feel the same way. If not, or you disagree please sign up and discuss your point why snap-on is great or not so great.
http://www.snapontoolsdealerassociation.com
During discussion with snap-on representative about the blockades Snap-on places in front of dealers from gaining profit in sales of their franchise, he claimed, for us to expect much at all in selling your business for any value would be going against national trends. Snap-on says statistics show that 80% of all businesses never get sold. They just go away. Yet they teach equity and blue sky in growing your business to buy more tools. Do they expect us to just walk away from our business some day. Snap-on could make this a better opportunity for the dealer. It is their choice to increase a dealers success rate, profitablitiy and the eventual liklyhood of a profitable sale. I would like to see statisitics out there about businesses. how many Tool dealers of any brand sell for a profit their business?????
To answer Brad about Alternative financing, yes you can get outside financing but it is nearly impossable to get. Snap-on tools places a 1st lien on your business if you go outside. Unless you have unbelievable resources to put a bank in a better financial position you will not get outside financing. Understand Snap-on’s business model for their customers is very similar for their dealers.
Snap-on business model is selling tools to blue collar, lower income and educational individuals who can not attain financing for their tools so they buy very expensive tools from Snap-on because of the interest free accounts that Snap-on dealers(not Snap-on) carries. Its a great plan for Snap-on. Snap-on reaps the sale at the risk of the dealer and the customer gets a good tool at very top dollar prices.
bringing a dealer on to Snap-on is very similar. Young individual with limited educational and financial resources will do just about anything and trust Snap-on in order to have a chance to own his own business.
Great business plan if you are a shareholder of Snap-on.
All Snap-on dealers. go to http://www.sears.com/snap-on-tools
Snap-on is now being sold to one of our biggest competitors. Do you think this is a good thing for the value of a franchisee dealer? Doesn’t seem like we have exclusive territories anymore.
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Please read and comment on this new post:
SNAP-ON TOOLS Why SBA Won’t Guarantee Snap-On Franchise Loans
The SBA has determined that Snap-on exerts “too much control over franchisees” (specifically by maintaining a List of Calls) to be eligible for an SBA guarantee on its franchisee’s loans. Basically, the SBA is saying that Snap-on franchisees aren’t really independent business owners, just affiliates of Snap-on corporate.
However, Matco Tools and Cornwell Tools also control franchisees via a List of Calls, yet both are still on the SBA registry. Both also have very high SBA loan default rates, 37% for Matco, 42% for Cornwell.
Shouldn’t the SBA be excluding Matco and Cornwell also?
PS Thanks to the unnamed reader who contributed the SBA rejection letter.
I guess only having 200 customers is what makes it more risky too. Not enough customers can only lead too a dying route. Shame on you snap on.
Being an ex-field manager, I know that any good field manager would lie on a list of calls to get a dealer more then 225 because all managers know that 225 will not support a tool dealer. In fact seldom does a field manager do a list of calls. Almost all of my list of calls have been generated off of prelists not by a field manager going out and counting heads. Snap-on wants to put feet on the street. The smaller the route the more trucks they can put out there.
I wonder if we can get failure stats on Snap-on dealers. They control 99% of all financing through Snap-on credit. It is extremely over priced. Snap-on even controls the truck loans. When a dealer fails I imagine they can control how that loss is taken on the books. Would be very difficult to get a reeal number I think.
Even so the ammount of control snap on has on dealers is tremendous. You as a dealer have too collect there money, repo tools, buy into there programs, have merchandise show up at your door you never ordered. The list goes on and on. That is probablly why SBA says they aren’t intrested.
Jim good luck getting that number. I’m sure snap on keeps those numbers hidden in a vault in fort knox…
Snap on probably likes charging dealers up the ass for loans too. My first year I was charged over $7k in my starter inventory loan. It is a 10 year loan so after it’s paid I basically paid double for the merchandise. Which really is a loss all around. Plus the rates are over the hill.
Dear snap on tools,
Your dirty little secrets will be revealed soon and what you do too dealers. You do nothing but control people and they make you rich while you make them poor. The truth will be heard.
Shame on you for lying and being sneaky.
You sell something on extended credit as a snap on franchisee. Something like a tool box.The minute your customer stops paying snap on credit calls and harrases you too pick up merchandise. The phone won’t stop ringing either. It’s like a debt collector calling you except it’s for a debt that isn’t yours. So you finally give in and pickup merchandise.
You and your business manager discuss fair market value on item. You agree too the fair market value and buy back merchandise for the price agreed. Then any money still left on the existing loan I get charged back 25% of the remaining balance. I later sell the repossessed merchandise for a little more then what I bought it back for. Maybe I got lucky or the price I bought merchandise back for was a little less. Either way time is money and making a a few bucks later should be ok.
So later you sell the merchandise on another credit sale for a little more. A few weeks later your phone rings. It is someone from snap on credit. The person on the phone asks you if you resold the merchandise you took back from John doe. You reply ” yes it is”. The person from credit says ” you sold merchandise for a little more then what you bought it back for”. Your answer is ” yeah I must have gotten lucky and managed too make a few bucks considering my time for taking back merchandise, fuel, cleaning and storing merchandise did end up giving me a little at the end.”. The next part is bad news for me. Person at credit says ” i am not allowed too make profit on merchandise I reposses.
So what that means since there was a balance still owed on old contract which there was in this case. Any profit I made on next sale snap on credit is gonna take from me. I am furious about this and have made it clear about my anger in this foolish system. This is probably another example why SBA looks at being a snap on dealer an associate of snap on.
Big question too all readers?…. Does anyone think this is a screwed up thing snap on does too there dealers?
being a former franchisee of snap-on,I pity anyone who by today’s standards gets involved with a franchise tool route.It is geared strictly for corp.I am a casualty of the “more feet on the beat program” this program cost me in excess of 400k,just trying to build/bail out my business.It has no support since the realignment of managers and call center.. they put you in debt beyond your wildest dreams and expect you to support the business.i am posting this only because of the subject of repo’s.a word to the wise,I don’t know the laws around the country,but you have no legal right to go in and repo any thing for yourself or snap-on tools.they tell you you have a right and produce a”letter of harmless” but that is only for the shop owner not for you..they rely on your customer rapore to make a “voluntary repo”. there have been cases where a franchisee was arrested for taking a customers tool box,because the customer was not there to sign the fmv sheet ,but gave a verbal ok because he no longer worked at that location..so be very careful not to take anything unless the customer is there and willing to sign a fmv sheet
Former franchise
There is help out there and you deserve to be compensated. http://www.mobiletooldealersassociation.com is considering the possibility of class action lawsuit agaist Snap-on. It sounds to me like you could use help individually. Contact Jerry Marks an attorney from New Jersey. He has succesfully sued Snap-on multiple times. Right now there is no good tool dealer opportunity. The Tool companies have become too greedy.
Former franchisee. Check this forbes report out. It will burn your ass.
Not getting paid what you’re worth (or not getting paid at all) and want to start your own gig? For those who don’t have the patience, capital or guts to generate sales from scratch, franchising can make a lot of sense—though not all brands deliver the same return on investment.
With the help of Robert Bond, chief executive of the World Franchising Network (a franchise database) and publisher of Bond’s Franchise Guide, we waded through data on 110 of the most established names to find 20 that competent operators should consider.
The methodology is based on five variables: average initial investment (franchise fees plus equipment costs); total locations (the more the better); closure rate (the number of closings in the last three reported fiscal years divided by the total number of existing locations); growth in the number of U.S. outlets in the last three years; and the number of training hours as a percentage of startup cost (the more support from the home office, the better). Overall footprint and survival rates carried the most weight. We did not include royalties paid to franchisors because they ranged in a tight band and thus barely affected the overall rankings.
Watch the bullshit that your about to see.
1. Snap-on
Kenosha, Wis.
These stores-on-wheels sell tools to professional mechanics. Each Snap-on truck comes equipped with a computer, wireless Internet access and a DVD player for product demonstrations.
Average initial investment: $135,390
U.S. locations as of 1/1/11: 3,392
Closures (last three fiscal years): 0
Hours of Training: 191
Wow, what a bunch of shit. Average initial investment of $135,390 does not include truck. that will be another $91,000.00 at 12% financed by snap-on.
Closures 0. really zero? Are you f…ing kidding. I have in my posession a list off all the dealers that left in the last 3 yrs. Its hundreds. No doubt because Snap-on does 100% financing in-house they cook the books. This is a blatent lie and proves that Snap-on is the master of deception. forbes should be ashamed for printing this article. Mac tool dealers, franchise and you will give Mac to follow in Snap-on’s foot print. No wonder snap-on won’t let us sell our routes. they want to turn routes on the cheap and control their own margins and statistics.
My big question is if snap on is the #1 franchise then why does FDA not recocnize us as being a successfull business? The FDA feel the franchisor controls too much of the franchisees business. I don’t know how they can say no dealers left in the past 3 years when I know of at least 8 in the past year alone. The whole thing is a scam.
Snap on dealers reading. Check out http://www.mobiletooldealersassociation.com. We like you to sign up and voice your opinions about how you feel about snap on. Good and bad story’s. Even post things you like to see changed. We may be able too be more profitable by working as a team.
http://www.mobiletooldealersassociation.com…. Please join all dealers reading…
http://www.mobiletooldealersassociation.com
I was scammed
I know you meant SBA not FDA. Here is a copy to the forbes link. wow what a scam. this is not even close. http://www.forbes.com/sites/jjcolao/2012/02/08/top-20-franchises-for-the-buck/
Read and comment. Forbes needs to be called out on this. This writer either got paid by Snap-on to lie or did no research at all. what a joke and Snap-on is creating huge press releases.
Oops I meant SBA… Typing too fast.. Thanks Jim
Do all snap-on dealers know Snap-on makes a profit off of all our credit card fees by Chase paymentech. I didn’t know that until recently, but they do. We pay a higher rate so snap-on can make money when we run a credit card for payment on one of snap-on’s credit accounts. hmmmmmmm??????
Is that ethical???????
I say it is unethical Jim. Snap on likes to reach how they do things ethically. Hmm… Another lie.. Doesn’t surprise me..
How about hot tools. Snap-on also makes a profit when we are forced to buy that from outside vendors. On top of being gouged on hot tools, it sets pricing so we are forced to discount even when a dealer doesn’t participate in the RAD or FDO programs. when dealers know and understand how snap-on gouges us all dealers of all levels of success will jump on board and join forces against these companies
Join http://www.mobiletooldealersassociation.com and share your thoughts.
I know this is a Snap-On forum but I would like to compare Matco’s new tool program. Matco has a voluntary program that you sign up for regarding new product releases. You, as a Distributor, select what program you want to be part of. We, as Distributor’s, want to know what the newest product out there is so SUCCESSFUL Distributor’s will participate. Matco takes advantage of Distributors by coming out with RIDICULOUS products (like T-handle spark plug removers) which are not tools that an every day mechanic needs to perform his job and has them marked up 3 times what they should be. So, they stay on your truck for 6 months not selling because guys like them but they say “are they made out of GOLD” “I can’t afford to buy it at that price” then all of a sudden they show up in a Matco sales flier and are 30% off and DROPPED in LIST PRICE. What Distributor paid for the initial product is MORE than the NEW price Matco is selling that item for. Then a couple of months later that item is DISCONTINUED and not available anymore. So, if you got one, you are stuck till you sell it BELOW your cost or you go out of business and have that product for your TOOL BOX!
Todd
Very similar with snap-on. Snap-on dealers buy product at expos twice a year. We also have monthly sales meetings, inside sales calls directed at the dealers on a weekly basis and a system called FDO’s which is Future dated orders. We pre buy for the whole year. All these programs basically sell us the same tools over and over again in different packaging and different prices. The FDO’s are highlighted in Snap-on’s marketing piece called hot tools. This is a marketing piece that is required for the dealer to buy monthly and Snap-on actually derives a income from this piece when they jam it down our throat. This piece has reduced pricing in it for the customers which controls what we can sell tools for. The problem here is that if you don’t pre-buy the tools, we have to pay a much higher price, yet we still have to sell at the reduced price.
As a side note.more than half of all Snap-on dealers are on tool hold at any given time.
WOW! Jim is that why their is usually a ton of product on a SNAP-ON tool truck? Because you don’t have a choice in some of what you buy? I know Snap-On is the #1 tool franchise and has been for 40+ years but are you telling me they use their DISTRIBUTOR success to PAD their Corporate pocket book and then when the Distributor can’t pay for all the inventory they did not choose to buy Snap-On puts them on HOLD and they can’t even buy a broke socket that week to take care of their CUSTOMERS?
bingo
code word for dealer on hold with Snap-on is, “it’s on back order” Truck loaded with worthless promos. Can’t get a 10 mil socket.
Bingo?
Do I get a PRIZE? LOL!
You know my #1 Competitor and Distributor for Snap-On in my area was Bob (Robert) Demers who was telling his customers their sockets were on Back Order alot in 2007 and 2008. I personally asked why he filed Bankruptcy in I think 2008 and he told me it was over medical bills. Then the next thing I know our DM and RM had him in San Antonio, Tx working as a District Manager. He is now calling on shops I was forced to vacate by Matco when they terminated my Franchise even though he had assumed a separate route.
snapon bm has a bag of tricks that will force you out of business I was force out after 24 years
How? We need to warn others. Please elaborate!