SNAP-ON TOOLS Franchise Complaints

218 thoughts on “SNAP-ON TOOLS Franchise Complaints”

• I read on Forbes web site people commenting on snap on being #1. I recommend people to read it themselves.

• shame on all you who bad mouth the poeple who fianance you. It is your franchise you dont have to do what they tell you. For example the person who said he got stuck with a non returnable diagnostic piece. You didnt have to order it. Its your responsiblity to check whats coming and do your orders. There all layed out on the table. You can cancel them also. All i have to say is these are piss poor lazy dealers that have no ambition to make it happen. the deals of today are fantastic and theres money to be made. To the person complaining about snapon credit. You never complained about the money you made on the deal. But you complain now about being harressed about picking up the product. With out you being there everyweek seeing the customer, the credit would have never been extended. So to all the unhappy dealers i say F**K YOU leave and make way for people with ambition who wanna make money.

• Happy snappy,

  First of all this is an open forum. That means everyone on here is entitled to there own opinion. Your opinion of course is welcome. The FU was totally unnecessary. Only punks talk like that and I dont take you as one.

  Shame on us for sharing our opinions is simply ignorant on your part. Snap on credit forces new dealers that don’t have all the money to buy into the franchise into using them. There are three reason for that. One being snap on credit makes a lot of money in interest charges, two being snap on wants too control everything in a new dealers business and three MOST banks won’t even consider loaning you money for your new business including SBA because snap on wants to be the first Lein in your business and no outside bank will touch that. So my opinion and many other on here feel it is wrong for snap on too hold us on the ball and chain by the ankles so they can make there millions and millions.

  The diagnostic comment. For whatever reason why any dealer buys an item is there decision. I do however feel some of these fpt meetings put a lot of pressure on dealers to buy stuff they really didn’t want. Or a BM may say ” just take the item and if you can’t move it we won’t charge you and move it to another dealer”. I heard promises like that and it becomes a nightmare for some dealers to get the product moved around. Plus don’t you think the item should be returnable? If you were to check in they have no problem taking diagnostic unit then.

  Lazy dealers comment. I am for one not a lazy dealer. Jim is one of the top 10 dealers in the company. You don’t become top 10 by being lazy. I talk to JIm here and there and he is always working at full throttle. I push a lot of volume myself and currently hold 2 routes.

  Now on to the snap on credit remark. You really think it’s fair us dealers have to be responsible for these people accounts? It really isn’t ours at the end of the day and really is Mr Customers responsibility to pay his or hers bills. Where else is someone responsible for a credit sale they made with a consumer that walked into there store buying something? Yet you find nothing wrong with the picture? Just because snap on credit had these rules written in the franchise agreement doesn’t mean it is ethical or even legal. In fact we may have found out it is illegal for snap on credit to ask us to collect EC payments with credit cards. So you should really read in between the lines before running your mouth.

  We are here to let snap on here what makes us upset. The workers in Kenosha may have lost touch of what is happening out in the field and need to know. I. Honestly think snap on will here what we are saying and wanna make changes to make this a great business. Jim said it best it’s the 5% of the business that can kill a dealer. He is 100% right.

• happysnappy,

  See guys, this is the type of HUMAN BEINGS Snap-On desires to sell their tools. People who can get on sites like this and BLOW sunshine up your REAR. Tell you that they make a GRRREEEEAAAAATTTT living doing what they do, only RECEIVE what they order, can sell their Franchise when they want to sell it when they have made all that money and love all those GREAT DEALS Snap-On gives them with their over priced CHINESE, TIAWAN, Canada, Mexico and SOME made in the U.S. tools. The fact is MOST of what SNAP-ON sells any WAREHOUSE DISTRIBUTOR has and ALOT cheaper!!!!

• if you guys dont want the opportunity that they offer why do you stay? and to the credit remark you should hold some responsiblity cause you are making money too. dont you think everyone would paper the town?

• Happy,

  I stay because if snap on changes that 5% this could be a great company. I don’t understand your remark with credit. I should hold responsibility because I made money? So if a customers gives you a visa card to buy a tool box from you does that mean visa should hold you responsible for the merchandise till it’s paid? You did make money. You can’t paper the town either because not everyone in town will have good credit and qualify. So my point is snap on credit approves people credit through a standard credit system criteria. Why should we be held accountable for an account we really didn’t approve? I think us dealers just get caught up being a middle man for no reason other then snap on credit using us as undisclosed employees. That is another reason why SBA looks at a snap on tool franchise as really an employee rather then an independent business opportunity.

• I also invite you to checkout http://www.mobiletooldealersassociation.com. We like all feedback positive and negative.

• thats the credit that they offer. once again if you dont like it dont use it.

• Happysnappy

  I think its great you are making money. You do sound young and nieve. I’ve been doing this for a long time and if you are drinking the Snap-on koolaide like it sounds you are, and following all Snap-ons programs I guarantee you are not making the money you think you are.

• I was just at a conference where a business broker said any business that earns $50,000 a year or less is a hobby not a business. Guess what the average Snap-on dealer makes. About $50,000.00 a year after Snap-on is done chipping away at our profits with riduculas interest rates, over charged credit card charges and so on.

• i guess im not your average snapon dealer. i make a good living and all of my fellow dealers that are around me seem to make a good living. i have people that do better than me and people who do less and they all seem to be doing pretty well and we arent in a low income area either. so i guess i dont know where your coming from and i pay more than half that average in taxes

• happysnappy

  Thats great. There are many sucessful Snap-on dealers. I have been around since 1992. I make good money. I used to be a Field manager. I say today that Snap-on in many ways is great. If they changed 5% of the way they do business they would be unbelievable. I tried to sell one of my franchises to one of my sucessful dealers recently and Snap-on blocked it in many ways. There is no resale value in a Snap-on tool route. Do you owe Snap-on any money? they report to your personal credit that business credit because they do not want you to get personal loans. that policy just started in 2009. Its wrong. I want Snap-on to change by 5% to become unbelievable. Did you know they make a profit off of chase payment tech everytime you run a credit card. We pay inflated rates to put money in snap-ons pockets. Thats wrong. Snap-on could be better.

• A random person not even with snap on made a good point on another post. Considering sba doesn’t even do business with snap on franchise should raise some red flags. Yet the writer on Forbes doesn’t even see that as being a concern. You gotta love how the kool aid gets passed around.

• Franchise attorney Michael Webster wrote:

  Is Snap-On Tools the next Coverall?
  http://www.franchise-info.ca/franchisee_association_news/2012/03/is-snap-on-tools-the-next-coverall.html

  Coverall is a janitorial franchise. A MA judge ruled Coverall maintains such control over the franchisees’ businesses that their franchisees are actually, technically, employees and should be protected by labor laws as such, including being paid min. wage, overtime, unemployment, etc.

  What do you think? Could courts rule that Snap-on maintains such excessive control that their franchisees are employees, not business owners?

• Funny thing is snap on thinks a dealer being on credit hold happens and is basically except able. If a dealer can’t get product for there customer how is that acceptable? I only mention this because a conversation I had with a manager today and that was the answer I gotten. I never go on hold because it stops me from servicing my customers. Yet snap on doesn’t see this as being a concern because it is up to the dealer to control there own account.

• Dear snap on,

  I hope you are reading these forums and you are ready to change that 5% of your business so franchisees can be in a better place,

  Thanks

• I been a Dealer with snap on since 1982 ,.30 years.I stared taking and acepting credit cards in the late 1980’s , used several different credit card company’s and if snap on is making money from chase payment tech. good for them because by the three our four other credit card prosessors i used chase paymetech has been the leas expensive one I have used. so if snap on wants to make extra income saving me money cood for them

• I just think they should allow other options that can still be used through the DSS portal. I also don’t think we should have to accept credit card payments through Snap On Credit accounts. It lowers our profits with the credit card fees.

• Forbes Snap-on controversy on BlueMauMau.org.
  http://www.bluemaumau.org/there_place_truth_franchising

  Jim Lager is quoted in the comments. He’s becoming something of a celebrity.

• thank you for the back up lonnie. also you can speak to you nfac to voice your concerns on the 5 percent of things that make you unhappy

• Nfac? Are you kidding? I talked to those morons at sfc and they are probably good hard workers but suck at being mediators or problem solvers. I have a lot of experience with letting my voice be heard to get things done. A group of franchisees that are appointed that suck snap ons ass isn’t the solution. I suggest you go on mobiletooldealersassociation.com. This association has helped me more in one forum topic then any conversation in person, email or phone call with my Nfac member. That’s a fact. Snap on treats franchisees like employees instead of independent business owners. If you don’t believe me read what SBA had to say about snap on. Then Forbes went ahead a reviewed snap on as being #1 for the buck. Then later realized they made a mistake. That will bite them in the ass later. It just so happens that when a dealer terminates there agreement snap on just requires the route. Basically means instead of reporting a store closed like any typical business would they do what is called CHURN. Real slick snappy but your dirty little secret has been revealed. So happy snappy don’t be so ignorant. Maybe when you waana sell your franchise one day you will see the light.

• how much do you want for your franchise?

• I like to get what would be fair after years of hard work. Most dealers check in and give the route back to snap on. That is what you call churn.

• The sad part is snap on makes it impossible for you to sell your route. They rather you check in so they can split your route into 2 or 3 routes if they feel it’s too big. I think only 200 customers is insane. Then snap on can make money on setting up a new dealer with fresh merchandise, over priced interest rates on loans and control the next victims business. It’s a crime what they do yet do a great job covering there tracks. The Forbes review really exposed some of there dirty little tricks.

• Look at Jim lager and his situation. He is a top 10 dealer in the company. Yet he tried selling one of his routes and snap on didn’t do anything to help him either. It’s like his route isntworth anything. So if his route isn’t worth anything being a top 10 dealer then there is little hope for us on the value of our routes.

• Happy snappy

  You are very lucky to likewhat you do and make money at it. You sound young and excited about your business. I also own another franchise outside of Snap-on and gave a speech last weekend about trusting your franchisor. Its very important to trust to succeed. Yet sometimes Franchisors betray that trust.
  In the case of the NFAC they spend their time dealing with the issues of the bottom 25% of dealers. Believe me that takes a lot because a lot of dealers get hurt in this business. No dealer will survive in a route of 200 potential customers. There is no doubt you had someone(in the field manager) lie and cheat to get you a route of more than 200 or you would not be singing praises.
  In my case I want to sell my route for something. I tried to sell to one of my dealers averaging more than $10,000 per week and a credit score of 740. Snap-on did everything to kill deal. In fact they wouldn’t even finance the computer technology package I bought 3 months earlier. Snap-on wants all routes devalued to zero because they can churn them. Something is wrong when a Snap-on dealer is checking out every single day to include weekends over a 3 year period.
  This is much more complicated than whether you are making money or not.

• Heres a survey for Forbes and a writer named Eric Stites whos client is Snap-on tools. Ask the following questions of all franchisees.
  1. How much money do you have in retirement after owning your business for 2 yrs.
  2. How much money do you have in retirement after owning your business for 5 yrs.
  3, How much money do you have in retirement after owning your business for 10 yrs.
  4. How much money do you have in retirement after owning your business for 20 yrs.

  If the way to get rich in this country is by owning your own business and accumilating wealth because you take risks than anyone who owns a succesfull business should be worth at least 1 million dollars after lets say at least 10 years.

  I don’t think very many Snap-on, Matco, Mac dealers can say they have much of anything after 10 years. The dirty little secret is we as tool dealers are employees in a system that places all the risk on dealers. In fact most dealers are happy employees because these companies are masters of deception. You young dealers will work your asses off and have nothing or very little to show down the road.

  2 years ago I started in another franchise system that wants me to become rich. They want me to take vacations. does Snap-on want you to take vacations? I don’t think so guys. Snap-on wants you working 52 weeks per year. Oh yeah you can take a vacation. But in order to keep moneyu coming in you need to Give away a $1000.00 pool cue that you buy from Snap-on. if someone mails you a payment while you are gone their name goes in a hat to draw. Lets see your profit was the pool cue you bought from Snap-on that you just gave away. But now at least you can pay Snap-on’s tool bill.

  Dealers out there. I am no idiot and Snap-on knows it. I own 5 Snap-on tool franchises with 6 employees, and my other business after 2 yrs has 13 employees. Both businesses will do over 2 million in 2012. I will net 5 times more money with my other business. In fact 2011 in my first full year of this other business being open my sales were half of my Snap-on business and it netted more than double what I did in Snap-on.

  Snap-on is a job and nothing more. Love it or hate it it is a job.

• a route that does 10k a week should be worth how much after 10 years? or how how much is desired for the business?

• If you speak to a business broker a business that nets $50,000 a year or less is a hobby not a business. With that said business in that catagory is worthless.

  A route that does $10,000.00 a week is questionable as to how much it nets. Of course it value is also questionable.

  Here are the facts:
  1. There is only one real financing option. Snap-on Credit.

  2. Snap-on will only finance $77,500 in new inventory at cost and $52,500 in R/A at cost.

  3. Snap-on will finance nothing else when you sell. Nothing. Not your computer, not your truck, not blue sky not anything.

  4. Snap-on has a schedule one with a whole list of things to sell when you try to do a transfer of your business. New dealer has to pay cash for everything. the schedule one Snap-on provides is worthless.

  5. Yet Snap-on is giving away routes with nothing more than 1st and last months payments on a new tool truck. Because its a job, not an opportunity to prosper.

  6. You will never sell your franchise for a profit. You will never retire under a palm tree with Snap-on as your business.

  7. We need to push Snap-on to not just be a job but a great opportunity that we can become wealthy.

  My suggestion is to run hard for 5 years as a dealer, runs number in excess of $12,000.00 a week if you want to make any money at all. Try to stretch your margins 5 – 10% higher than what Snap-on wants us to make and get out with your cash and use your experiences to start another more profitable business. Snap-on is a great learning ground for running a business but you will not prosper big time.

  To answer your question directly. $10,000.00 a week route has no value. I will eventually give this route to my dealer.

• i was looking for your opinion on what you think it should be worth. on an average. what should the sale of the business yield (thats on a 10k per week avg.)

• I think it will depend on how much someone is willing to give you cash out of there pocket. Problem is Jims earlier point. Average snap on dealer makes $50k a year. Who is gonna invest well over $100k with a lot of up front cash for a job that only pays $50k a year? Most people are gonna look another direction or just take on a regular job as an employee. So I see a route that des $10 a week being worth zero. I also see snap on when your ready to depart for whatever reason with there hands out waiting for you to hand the keys over just like most other dealers end up doing. It sounds harsh but that is what snap on does.

• i should be really pissed now. especially at my accountant my 10k a week business only provides me with that much. oh wait it seems to be alot more than that. I cant speak for anyone but myself on this so i guess if i will keep asking. maybe someone can give me an answer as to what they think a it should be worth. I dont know who looks at buying a business without seeing what the earning potential is, what the costs are, and if they themselves can make a profitable business from what snapon has to offer. In my case if i were selling my business to someone would i want to have my tax returns present to show them how much was made. when i started this business as a trial franchise. i invested about 3500 out of my pocket. now 7 years later and about 4 years after buying my business the business loan is almost paidoff i have more in the bank then most people could earn in 2years doing this according to everybody here. enough to buy a decent house in business equity.tons of stocks in snapon my own ira and sep. also make enough money for nice house, car and my family. so maybe im just lost in this whole thing. but i still wanna know what everyone thinks a 10k business should be worth when selling

• Happy snappy

  You don’t listen do you? To me it’s worth more than zero. But zero is what u will get when you sell. Try it and you will see. I mean try it, don’t ask snap-on because they will tell what you want until you try to sell.

  Good luck

• wow thats great. one simple question couldnt be answered. unless i was asking you for a song and dance. thats what im getting from you. I guess thats why stuff wont change. here we are asking questions to eachother to get answers to help one another. Instead i get “you will get nothing just try” thats wonderful. You never said your price for your business what you think its worth, what you want. Is it a ridicilous amount? i would like to know. i have asked the same question at least 4 times with no real answer. You come here to speak your piece and you dont answer what someone asks you. I guess we know where the biggest zero in this business is.

• Happy snappy

  Let’s see, how do I answer. I asked Snapon to finance truck for $20,000. Snapon said no. I said ok. I then asked them to finance $15000. Business value. They said no. I said okay. Then I asked to finance bran new computer I just bought for $5000.00. They said no. Then the regional manager pat Laughry, called me and asked me to give my route away for free and he would give me a free tool box on the side. I don’t do side deals. By the way they will only finance 52,500 in RA. How much RA do you have. I’ve been around a long time and made a lot of money. It’s great you are doing well. Just don’t be nieve. Snapon could be better. I will repeat myself. I want more than zero. I hope you do too. Today you will get zero because Snapon wants to give your route away in a gateway program like you started in.

• why couldnt you finance the dealer buying your stuff. He could finance the tools and ra book from snapon and you could finance the truck,computer and business and any left over ra. is that an option?

• Happy snappy

  Don’t hate Snapon. Love them but stand up to them and make them add value to YOUR business. Your not a business owner if you can’t sell

• but why couldnt you finance the dealer. with what you have to sell. if he has your truck why cant he give you 400 a week for a 100 weeks to make you the 40k of which you asked snapon to finance

• I get that but why can’t snap-on. I could go to a bank and have another bank finance it but Snap-on puts a 1st lien on the business. You sound like a great hard working guy that got a great opportunity from snap-on. That happened to me once too. That doesn’t mean we should except Snap-on and let them take advantage of dealers. any good business has a value that it is worth something and that business should be able to be financed and sold by a bank. Nothing more. If Snap-on is the bank they need to help us sell the business for whatever it is reasonably worth by financing it. I should not have to finance the business. By the way, my dealer can get a gateway like you did for $3,500.00. If I transfer my business he has to give Snap-on $25,000.00 cash, not me, but Snap-on. In addition he needs another $7,000.00 for other expenses given to snap-on. I have yet to have gotten any money for my truck, computer, blue sky. I love your attitide happy Snappy but please beware. Snap-on controls your every move. I want you to sell your business for big money someday. snap-on doesn’t. Lets change that to better both Snap-on and dealers.

• Happy snappy,

  If you couldn’t work another day in your life starting Monday what do you think snap on would do with your route, RA book, merchandise and tools? And what would they pay for?

• if that happened i guess id be turning in my tools and ra book. i guess if i were dead or so sick or hurt i couldnt talk. but if i could still use a phone and a computer maybe still get on the truck i would find someone to help me. and if not after this long a time i could just start calling customers and make them a deal to get rid of my stuff

• also thats what happens in all business. unfortunenty we are 1 person businesses. we all know people who are employees that get sick or cant work any longer and they end up getting replaced. we would all like to think we are special but we arent. we are there customers. Its kinda like when we take tools back from someone when its used you dont give them the full value. when you take back tools its just business. its unfortunate that the whole world is just in business to make money not help good people.

• I have been reading all these replies back and forth with happy snappy..after seeing how snap-on treats their franchisees and listening to this happy snappy,I am convinced he is a corporate plant to rebut their unethical business practices.I know a dealer who bought 2 separate perspectives to buy his franchise when he wanted to get out.they had financing and cash money in hand ready to go.snap-on interviewed them and said both where unsuitable.the dealer liquidated sold his truck privately and walked away from a 12k a week route.at that time he was only pulling a pay check of 65k after operating costs(his dead net, true profit). a deciding factor that made me close my so called business, was from a wealthy successful person,he said to me ,if you could make as much as you are making now working for someone,why would you want to be in business for yourself…unless you cant abide by management or show up for work every day…
  I personally went head strong into this franchise when it was a top 10 franchise to own and not in the home based category.I invested and had lost income of 450k over my 7 year association with snap-on. Jim I must say you are a gentleman in how you answer a lot of these posts and a true business man. I hope you get what it is that you started this website for ,before you get shut down by corporate either in business and or the web.good luck.
  some more info:did you know Wisconsin attorney general prosecuted snap-on for similar unethical practices in there military sales..look it up they paid millions a couple of years ago.

• I have been reading all these replies back and forth with happy snappy..after seeing how snap-on treats their franchisees and listening to this happy snappy,I am convinced he is a corporate plant to rebut their unethical business practices.I know a dealer who bought 2 separate perspectives to buy his franchise when he wanted to get out.they had financing and cash money in hand ready to go.snap-on interviewed them and said both where unsuitable.the dealer liquidated sold his truck privately and walked away from a 12k a week route.at that time he was only pulling a pay check of 65k after operating costs(his dead net, true profit). a deciding factor that made me close my so called business, was from a wealthy successful person,he said to me ,if you could make as much as you are making now working for someone,why would you want to be in business for yourself…unless you cant abide by management or show up for work every day…
  I personally went head strong into this franchise when it was a top 10 franchise to own and not in the home based category.I invested and had lost income of 450k over my 7 year association with snap-on. Jim I must say you are a gentleman in how you answer a lot of these posts and a true business man. I hope you get what it is that you started this website for ,before you get shut down by corporate either in business and or the web.good luck.
  some more info:did you know Wisconsin attorney general prosecuted snap-on for similar unethical practices in there military sales..look it up they paid $900k a couple of years ago.

• I have been reading all these replies back and forth with happy snappy..after seeing how snap-on treats their franchisees and listening to this happy snappy,I am convinced he is a corporate plant to rebut their unethical business practices.I know a dealer who bought 2 separate perspectives to buy his franchise when he wanted to get out.they had financing and cash money in hand ready to go.snap-on interviewed them and said both where unsuitable.the dealer liquidated sold his truck privately and walked away from a 12k a week route.at that time he was only pulling a pay check of 65k after operating costs(his dead net, true profit). a deciding factor that made me close my so called business, was from a wealthy successful person,he said to me ,if you could make as much as you are making now working for someone,why would you want to be in business for yourself…unless you cant abide by management or show up for work every day…
  I personally went head strong into this franchise when it was a top 10 franchise to own and not in the home based category.I invested and had lost income of 450k over my 7 year association with snap-on. Jim I must say you are a gentleman in how you answer a lot of these posts and a true business man. I hope you get what it is that you started this website for ,before you get shut down by corporate either in business and or the web.good luck.
  some more info:did you know Wisconsin attorney general prosecuted snap-on for similar unethical practices in there military sales..look it up they paid $900k (revised)a couple of years ago.

• i find it funny that you believe me to be a from corporate. im just a dealer who was told about this from a friend. my problem with all this is that everybody doesnt see that they are in business to make money. Yes i believe things should change also. It wasnt my first meeting when i realized ( they are just here to sell me stuff) it was my job to say no and its was my job to sell what i bought. unethical or not. its your job to ask questions and run your business. After this week of reading and posting here i went through my tax returns and saw that its not 50k a year job. its alot of work to make money. I know dealers that used to make alot at there old jobs. they came to snapon and found out this wasnt for them. they went back to work doing what they do. you have to remember that this line of work is not for all people. You have to know alot. Its not just selling tools and collecting money. you have to be your own business man you have to do whats best for you and no one else.

• Former franchisee

  Thank you for the compliment. I have already gone thru the legal battle with Snap-on. I have hired an attorney and have no fears of their legal issues with Snap-on. I plan on exposing Snap-on for who they are.They are watching every post I make on this site and http://www.mobiletooldealersassociation.com. I know this because they call my attorney frequently. It is not a business opportunity. If you get too big in snap-on they do everything they can to hold you down. If happy snappy is a franchisee he is fooling himself. I no longer want to sell my franchises because I can do more damage to Snap-on’s reputation by continueing as a multi franchise dealer. We are spreading throughout the web and getting agnowlged by Kenosha news, Forbes, International franchise association, bluemuamua and much more.

  Snap-on could be better but because it is a good old boys network who think all dealers are stupid they won’t. I am here to educate dealers. Thanks for your help and info. we will look up the military issues on ethics.

  Last week I gave a speech at Pirtek’s 14th annual franchise convention. It was about trusting your franchise to succeed. I still believe one must trust their franchisor if they have any chance to succeed. Its hard to do that with Snap-on when they truely don’t offer a franchise. Just a job.

• ok happy snappy

  whats your weekly paid sales and what does your schedule c of your tax return say you make? this is your net after all expenses. Your cash flow by the way is lower than this number because your schedule c won’t count principle pay down of your loans to Snap-on as an .

• questions for happy snappy,are you incorporated drawing a pay check or a sub s,or single proprietor? because if your business is ran any other way other then you being a employee pulling a weekly pay check you don’t know how much you are making, because you are just floating money around from column to column not knowing anything other than, my bills got paid this week.if you are anything other then a corporation find a new accountant!!! how long are you a dealer,what are your paid sales,what is your true c.o.g.? if it is not a 50k a year job to you,then you must have paid sales well over 500k a year this is about 10k a week dealer.your true bottom line what goes in your pocket after health,truck insurance and fuel not to mention premium promo packs and any other operating cost…so educate all these unhappy franchisee’s so they could be more profitable.

• Schedule c will show your income. Is it more or less then $50k?