SNAP-ON TOOLS Franchise Complaints

218 thoughts on “SNAP-ON TOOLS Franchise Complaints”

• I like it that Forbes is big enough to acknowledges that they were wrong. I would rate the Forbes writers even higher if they would now show hutzpah and remove Snap-On Tools since a mistake was made. Or keep it on and explain why it still belongs as #1. (It doesn’t.)

  Forbes should publish a churn rate from the raw numbers for each brand. Define this as closures / total U.S. locations for the past 3 years. So using Forbes’ numbers:

  Brand
  Franchise closure (store may continue) Total units Churn Rate
  Snap-on 1060* 3,392 31%
  7-Eleven 90 6142 1%
  Aaron’s 12 1,749 1%
  Panera Bread 6 1379 0%

  Look at Panera Bread! Panera Bread’s churn rate of 0 percent let’s me know quickly that something special is happening there. Owners are hanging on to it as if it were made of gold and the franchisor isn’t weeding franchisees out. Panera bubbles up as the #1 choice on this list — without weighing other factors such as unit earnings.

• If Snap-on will lie about their closure rate what else will they lie about. 31% closure rate. Not a good deal at any price. Every manager who promotes that piece to gain franchises should not be able to sleep at night. The director of franchising for Snap-on tools needs to tell it like it is and apoligize for the bad publication.

• I have to admit snap on is really good in covering there dirty tracks.

• 184K gross 106k after

• After what? What’s paid sales

• expenses 10200 a week

• I’m lost with these figures. Jim you get it?

• He needs to tell is his paid sales. If he made that much cash he does not have 200 customers. Or his accountant is an idiot

• 10200 dollars aweek

• So your sales are around $530k? Your figuring around 35% margin? That is where you came up with $184k? So let’s look at $185k. That is your profit after cost of goods. The margin is a bit high. I think snap on works on a 30% number. So let’s do some estimations? Your profit has to pay for truck payment roughly $350 week including $50 for maintenance ($18,200 a year). Your monthly franchise fee $107 month ($1,284 a year). Your inventory loan roughly $240 a week ($12,480 a year). Your RA development loan roughly $160 a week ( $8,320 a year). Your monthly hot tools flier $82 a month ( $984 a year). Your truck and inventory insurance roughly $375 a month ( $4500 a year). Your BA merchandise you purchased for raffles or giveaways roughly $7500 a year that would include RA jackets if you use that program. Now BA does count as an expense if you don’t sell it for a profit. Your shipping cost snap on doesn’t cover roughly $750 a year. Your sales tax. If your tax rate is 6% then on $540k paid sales which could be off a little because it goes by delivered sales is roughly $32k. Then you have bad debt on RA skips or charge backs that can end up being if you go by 2% of your paid that can be around $10k. Then if you travel to snap on conventions such as kick off or sfc that can run around $3k if you don’t spend a lot on plane tickets, hotel and spending money. Then fuel which can be around $150 a week which is around $7,800 a year. Then uniforms which cost me around $300 a year.

• thats roughly 75K in expenses and my taxes are different where i come from so 184K less the expenses i said ended up with 106K my difference was 78K.

• That adds up to be around $107k in expenses. So if your profit is $184,000 and your expenses are $107,000 your net after expenses is $77k. Your take home after taxes 30% federal tax $53,900. Damm Jim you were right. Average dealer makes $50k a year. So let’s do one more figure $53,900 you took home. You worked 70 hours a week which most guy do that is 3,640 hours in a year. Take $53,900 divide that into 3,640 that equals $14.80 an hour. Ok your probably saying you earned $77k but you actually didn’t take all that home because you had to pay uncle Sam. But let’s divide by $77k that equals $21.15 an hour.

  So don’t be fooled. You including every other dealer is an employee that is highly underpaid. If you worked 70 hours a week as a real employee even at $21.15 an hour you made on 40 hours $43,992 a year regular. On the 30 hours which is over time so that is 1 1\2 times your hourly salary is $49,491 a year. Add them both together that is $93,483 a year. Wow. Job probably gives you sick days, vacation, personal days, medical, dental, prescription plan, 401k, etc etc. The best part is you have zero risk. Yet snap on has figured out a great scheme on how to paint this picture of owning your own business and Getting rich but really made you an undisclosed employee. This goes to my earlier point. Why is someone gonna buy your route to only make $15 bucks an hour or may $21 at best. So back to Jims earlier point your route is worth crap. You have to admit. Snap on has has a great scheme going.

• 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.

• Read this report on
  http://www.bluemuamua.com

  http://www.bluemaumau.org/forbes_may_adopt_franchise_churn_rankings

• I talked to an old timer this past weekend that been doing this for 40 years. He said ” snap on has forgotten how hard us dealers work out here. At one time snap on really showed there appreciation to all the dealers. Now they just dine us once a month for a $10 dollar dinner where they expect us to spend thousands of dollars.”. He has seen a lot of ups and downs with snap on over the years but he feels new dealers coming in aren’t getting anything great other then average paying job. He also said snap on can’t wait till he leaves s they can chop his route into 2 or 3 routes.

• Any dealers sick of getting ripped off buying hot tool fliers and then getting sucked into RAD? Snap On forces dealers to buy into these programs and if we dont participate in them we lose margins.

• Everything I read makes sense on what snap on is doing to people. Yet nobody including the government sees this as a problem? I have almost lost everything including my home over this company that has sucked every drop of blood out of me. I call out a class action myself for us being secretive employees. That’s all we are in these trucks.

• I too was scammed by Snap-on. I have experienced a lot of what’s already been discussed here on this forum. Everything from Snap-on Credit, Hot Tools, no value in my multi-franchise business (4 franchises and a second van). I went from being a top dealer in our “branch” to Snap-on reducing and taking my territories down to two. After my Regional Manager told my wife she was too old to run my second franchise and reduced my business down to 1 truck, I could no longer carry the indebtedness they put me in by convincing me to take on the other franchises. Keep in mind, my wife went through all the training in Texas, as was given the award for Top Second Van in our region running the truck “part-time”. To all of you newbies out there, beware of friendly assassins, namely your Regional Manager, Business Manager, and your Asset Manager. They are all in cahoots. Be smart, record your conversations with these people. We were doing fine until the 2006 “reorganizaton” to FPT. I was a Top 20 dealer nationwide until then. My wife and I have also retained Marks & Klein and encourage anyone out there to do the same if you are not satisfied. Your franchises are truly not worth anything to sell, no matter what they tell you. I heard all the same lies. I have been self employed for over thirty years and know what it takes to run a business and make money and build “real” equity. The only reason I got involved in this is because I didn’t want employees anymore and that’s what I ended up with anyway because they told me that’s when I’d start making real money (I averaged well over 10K/week before I expanded also). If you are making money now…get out while you can. Cashing in gets you nothing. You might end up with 50 cents on the dollar returning your tools because if it’s not discontinued, it’s truck worn. You will only end up with 75 cents on the dollar of RA only if it’s verifiable (customer present when checked with rep). I had $20K equity in my truck…got nothing. They interfered with any sale I had going on that. Truck was worth $86K, only owed $60K. I paid $140K new.
  It’s all a scam. They do inventory once a year, pump you up about how much equity you have in your business, then when they want fresh blood out there, they tell you how much you’re losing with one of your franchises and convince you that you should check it in. That’s the game they play.

• Wow, Snapon is master of deception. Snapon has a 33percent failure rate. Top 100 dealers have no money yet so many dealers love Snapon. In snapons mind it’s always the dealers fault. I am thinking about trying to get on dealer advisory board as well as publicly attacking everything Snapon does. I want to come up with 5 real things that would make Snapon great verses being a scam which is what they are today. Your story is too sad

• That is very sad. It’s funny how people that don’t know each other yet all share similar stories. Snap on is very good at getting people pumped and hide what is behind the real door #1. I suggest you checkout mobiletooldealersassociation.com.

• Quite around here….

• No worries, we will light it up soon. Mobile Tool dealers association bought 2012 FDD for Snap-on and is analysing it now. Also analysing Mac and Matco

• Go to http://www.mobiletooldealersassociation.com if you wanna check out tool companies fdd documents.

• So… interesting comments here boys. I’ve been going through the process of opening a franchise with Snap-On and stumbled across this site. I haven’t pulled the trigger on the new business, but wow, great food for thought here. Thanks for posting. Definitely a ton of stuff for me to chew on.

• Almost a franchise

  Keep in mind most successful dealers in snap-on are in under old standards. Failure rate of new dealer is out of this world. Your chances of becoming wealthy are almost zero. Be prepared to work 70 hrs a week if u are lucky enough to get a good route. If u get a route with 225 head count or less. U will fail. All my routes have 400 or more. Only way u get that many is if surveyors in field cheat for ur benefit.
  Good luck
  Jim

• Thanks Jim. Due to this site I decided to opt out of my franchise this morning and look elsewhere for biz opportunities. I appreciate your wisdom and transparent candor. Very helpful and refreshing.

• Almost a franchise

  It’s more money but checkout Pirtekusa.com. I bought franchise two years ago and profits are amazing.
  Good luck

• Almost A Franhise,

  You made the best decision of your life. You will never really know for sure what you got yourself involved with but believe me, running a Snap On truck is not a good place. The problem with buying into Snap On is you basically bought yourself a low paying, long hours and never a break job. I still think Snap On really doesn’t have a clue how to make this business a better oppurtinity or they just don’t care. Either way when the older dealers (Large Number Of Them Still around) are ready to try selling there routes and see it being no walk in the park then that is maybe when Snap On will be forced to make changes. I say forced because that is the only way of getting things done when you are dealing with Snap On. Invest in a company that will allow you to hire people and have those people build the business for you while you work behind the scenes. As a Snap On Dealer it’s just you sweating your ass off with no little time for a break. Perfect example I worked since 7am this morning and now it’s 9pm I just got done. Now I am typing here on this web site talking about not doing the job I just got done doing today. Funny but sad. I wish you the best in your venture.

• Unhappy Dealer and Jim Lager;

  I’m so happy that the two of you took the time to help others understand the “opportunity” from your experience. About two years ago I seriously considered a tool franchise but did not pull the trigger on it due to a stroke of very good luck that brought me a much better short term opportunity. As that opportunity is nearing expiration I began to consider a DBR investment again and there is no doubt that I would have found lots to like about the work, but would have found myself regretting the same issues you two have both outlined very professionally. Perhaps I won’t find anything that is better or more suitable to my liking but at least I will be armed with more knowledge from your experiences. To think that I don’t have to learn it all the hard way is extremely valuable.
  As a side note: I investigated a Matco franchise and spoke to some of the DBR over there of which two had been former Snap On DBR. They were much happier at Matco – but I still see many of the same catches that seem to be part of the relationship with all of the companies.

• Good luck on your search and stay away from the Evil Tool World. Thanks for your nice comments.

• Between the honost and ethical workings of this site and http://www.mobiletooldealersassociation.com the truth is getting out. we are slowly stopping people from making life destroying decisions by gettting into a tool franchise that is dictorial and preditorial towards its dealers.

  Currently the association has hired a staff to contact all terminated Snap-on franchises. the association has more than 500 members now and growing fast. the staff is calling and mailing out letters offering our advice and help. Several terminated dealers have now asked for legal help due to our offer of assistance and it is very possible we will be able to get these people financeally whole again. Snap-on has replaced their solid foundation with a house of cards and it is the intention of the association to take down this hose of cards and force Snap-on to change management and their ways of doing business. If you know of terminated dealers please have them reach out to the association for help. We have a list of well over 1000 terminated dealers so if you need help soon contact us now. WE CAN HELP!!!!!

• This is my input about snap on me being a dealer…..

  Goods:
  The products are good and hold up well for the most part.
  The brand name is strong.
  The support is probably better then what you may get driving the other trucks.
  You will make an average living if you are newer into this job.

  Bads:
  You will work more then 60 hours a week.
  You will ave an endless amount of cardboard and packing paper.
  You will be a bill collector.
  You will be on and off credit hold.
  You will have little time or the money to take any days off.
  You will get pressure from managers to keep buying tools.
  You will be charged a very high interest rate on your truck and inventory loan when you get started.
  You will never really own your route like they say you do. Snap on has the first right of refusal on the sale of your franchise.
  You will be forced to deal with non paying customers.
  Your head count of customers will always be less then it should be.
  You will be forced to sign up in programs as a new dealer you may not like.
  You will never fully understand how to manage your statements.
  You will have tools show up at your house you don’t remember ordering.
  You will have to buy merchandise to raffle off just to get your customers to pay you on time.
  You will always have an asset manager telling you that your retaining too much money.
  You can never sell any tools to any person outside your list of calls. Even if that person happens to jump in your truck from the street.
  You can never have more then 5 routes at once.
  You can’t hire anyone to help you in your truck unless that person is approved through snap on management.
  You never always get the best deal when a product goes on sale.
  Your management sales team will always lie to you if they can get you to buy more tools.
  You will have to spend many extra hours every week checking your tool bill making sure there something there that shouldn’t be.
  You will wait months for a new tool return credit.
  You will spend a lot of time fixing hand ratchets, replacing screw driver blades and replacing bits on sockets. You do that for no compensation from snap on.
  You will hear every story in the book from customers when they have no money to pay for there tool bill.
  You will be hounded from snap on credit when something needs to be repossessed.
  You are not allowed to make a profit on anything you reposses if the customer still owed a balance.
  You will eat shipping cost on repairs that are still under warranty.
  You will have back order problems.
  You will have your garage stuffed with many tool boxes you don’t need.
  You will see many of the same items on sale all the time.

  There is much more to write but you get the point. Just remember one thing. You as a snap on dealer are never an independent business person. You are snap on’s runner and they control you. They put you in business and can take you out at any time. So anyone reading this thinking of becoming a snap on dealer. I would look another direction.

• Just a number

  I could not have said it better. There was a time when being a Snap-on dealer was something. Why are dealers not standing up to Snap-on? My goal is to change Snap-on by destrying their recruiting efforts and rising up the terminated dealers in lawsuits. I think it is the only way to change. current management will have to be replaced if we are succesful. Thank you for helping us educate potential dealers. Spead the word for terminated dealers to contact http://www.mobiletooldealersassociation.com. there is help out there and I have already place several terminated dealers with legal representation. Jerry Marks with Marks & Klien knows his way around these tool companies.

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• We’ve upgraded “Just a number”‘s comment to a full post.

  SNAP-ON FRANCHISE Pros & Cons of Being a Snap-on Dealer

  Thanks, Just a number

• I was screwed blues and tattooed by snapon tools,due to a disability.I was promised the world and ended up broke and out of business. My 1 st 3 months I had alot of help from bms and sds but as I started learning some and thinking for myself the help was gone because I didn’t do what bms and sds wanted when I started getting in trouble I asked for help every week and couldn’t get any at all in cost me around 50k when it was over.After check in some slicksters from snapon try to take me for 30k more when I emailed regional manager asking for there back up I never heard from them again because I informed him my records showed they owed me at least 25 k they have no idea snapon didn’t even give me my 7500 veterans credit can’t believe this is the same company I worked for in the mid 90s as a tech rep beware of them and there slick talking management team
  Bob

• The product is still great. Just the management has made it a tough job.

• I wanted to add a little inside information about Snap On Tools. I am currently a dealer that will be leaving soon. This is more of a Buyer Beware tips.

  Snap On Tools is not a business opportunity. Recruiters will tell you that but it isn’t. Here is why…..

  1. Snap on only will give you 200 potential customers that you can sell tools too. That means you can’t sell to anyone outside those list of people. Even if someone walks in your truck cash in hand to buy something. Snap On can also take away any customers at the discretion that is over 200. If you don’t believe me read the FDD Document. So how is it a business opportunity if you can’t grow? There is an answer to that question.

  Snap On does allow you to get 2nd route if your looking to grow. It is at there discretion if they will allow it but it can be an option. Here is the problem with that…

  1. Snap On has to approve your employee that will drive your truck on 2nd route.

  2. You have to meet the criteria which isn’t as easy then when you first got started.

  3. You will either have to buy a route from a dealer leaving which doesn’t guarantee you a route because Snap On has the first right of refusal. Or you will have to wait till a route opens which then don’t guarantee you anything because a new prospect coming in will get first choice. Reason for that is because Snap On makes more money on a new start up then adding a 2nd truck for an existing dealer.

  4. If you figured out how to make money outside of the Snap On way then they deffinently don’t want you to grow. Snap On only wants people that will struggle most of there career because it gives the company more power over you. If they allow you to grew so you can make the kind of money any REAL independent person expects to make then that would give you too much power.

  So buyer beware. When you join Snap On you are just a glorified employee. You can even read why SBA won’t guarantee Snap On Franchise loans. If you are thinking the Snap On Tool business invest your money in a business that can earn you more then $35k a year. That is all you will make driving a Snap On truck if you make it. Don’t forget Snap On has a over 40% failure rate.

• Whether its Snap-On, Mac, Matco or Cornwell, if they are a member of the IFA they are not worth the time to invest in. Franchising is supposed to be an opportunity for you to own your own business. To be your own boss. To make your own decisions.

  Companies who are members of the IFA are members of an organization which PROTECTS franchisors. That is why the franchise agreements called F.D.D.’s which you have to sign to become a franchisee are worded the same protecting the franchisor by having the franchisee sign away his or her right’s to DUE PROCESS in a court of law. The F.D.D. states that should the franchisee have an issue with its franchisor that the franchisee agrees that if mediation can not correct the issues that arbitration is a final answer between the franchisee and franchisor of which the arbitrator will be from the state where the franchisor resides.

  I would never agreed to sign this contract had I known that my franchisor would commit CRIMINAL acts to my franchise and hide behind a contract for its criminal behavior involving my franchise. I believed that should my franchisor break the law and fraud my franchise, steal my customers or falsely terminate me an attorney would represent me and my voice could be heard.

  BOY was I wrong!

• Pingback: SNAP-ON TOOLS Franchise Dealer Warns: Buyer Beware! : Unhappy Franchisee

• So guys i just found out about this website and thought i’d share a little of my story.

  I was a 2nd van for 2 years and made a percentage commission on paid sales and was fairly successful because I ran good numbers.
  I decided to buy in as a full franchisee after 2 years of being a 2nd van.

  I buy in for $160k plus a truck, I was asked to put $30k down and did.

  And then… oh yea this business is worth at least $30k blue sky….
  So in order to make all this work out I was told that that $30k needed to come from somewhere. So it was slipped in to the inventory number and also the RA on the street. So… Part numbers that i didn’t own and RA accounts that i didn’t have.
  So… On day 1 once everything was cleared out and corrected i started with -30k equity…
  The idea was devised by the dealer i worked for and was known about by the business manager that still currently works for Snapon tools in Va.
  There’s no way you can convince me that this was either ethical or right for him to know about this and let it happen, i was definitely stupid to buy in but it was made out to me that this was the normal mode of operation.
  I ran very good paid sales numbers during the first 7-9 months of business.
  I was a top dealer in my group for multiple months.
  I don’t see how Snapon can keep going like this if things like this are the normal…
  They as a company have got to realize there is a major problem here!

  So i lasted about 11 or 12 months and decided i was done… Tool bill on hold and no clear way out… i check in… I’m left owing somewhere around $150 after all the tools were checked in and after the accts where verified… in just 12 months…. unbelievable!
  So i was made to believe that i was totally screwed but i might have an option of offering snap on some money and them letting it all go….
  So the number was $40K… i offered it to them after getting a personal loan and…. sure enough they took it… i sign a release document and everything is dandy….

  X-Dealer