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.

Contact UnhappyFranchisee.com

To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.

More on the Snap-on Tools franchise:

SNAP-ON TOOLS Franchise Disclosure Document (FDD)

Mobile Tool Franchise Guide: List of Calls (LOC)

unhappyzee

View Comments

  • 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.

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