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Mac Tools Franchise Costs & Fees

Date of Incorporation: 1938
Franchising Since: 2011
Headquarters: Westerville, Ohio

Business Description: The name of the franchisor is Stanley Industrial & Automotive, LLC through its Mac Tools Division. Mac Tools manufactures products and offers distributorships for the mobile distribution of professional hand tools and equipment to professional mechanics.

Franchise Offer: The franchisee will receive the right to operate a business involving the mobile sale of professional automotive tools and similar products manufactured and/or distributed by Mac Tools and bearing the MAC Tools trademarks.

Financial Assistance: Mac Tools has a contractual relationship with a third party provider, Wells Fargo Equipment Finance, Inc. (Wells Fargo), under which Wells Fargo offers financing for the purchase of the Starter Inventory and/or the truck to certain qualified applicants seeking to become a franchisee. From time to time, a franchisee may be assigned a Route that has been operated by a Mac Tools employee. In Mac Tools sole discretion, Mac Tools may allow the franchisee to purchase certain accounts receivable, in whole or in part, which are owned by Mac Tools and relate to amounts owed to Mac Tools by customers on the Route. If a franchisee is permitted to purchase certain of the accounts receivable, Mac Tools may from time to time and in its sole discretion on a case by case basis, provide the franchisee with financing for the purchase of the accounts receivable. Mac Tools may provide inventory on credit, such that the franchisee is given extended terms for payment. Mac Tools may also periodically make certain Products available to certain Mac Tools franchisees to purchase on extended repayment terms. From time to time, Mac Tools may provide prospective new franchisees with information regarding lenders that are willing to enter into financing arrangements for the Mac Tools Business with Mac Tools franchisees./p>

Training and Assistance: Unless a franchise candidate has received written consent from Mac Tools regarding an exception to this policy, it is required that a franchise candidate accompany an existing Mac Tools franchisee or distributor, selected by Mac Tools, on the franchisee's or distributor's route (Mentor Ride). This Mentor Ride lasts approximately five business days and occurs approximately one week before the initial training. The initial training program includes a mandatory classroom training program that generally lasts approximately five days (depending upon training class size) held in Westerville, Ohio. Unless a franchise candidate has received written consent from Mac Tools regarding an exception to this policy, if a franchise candidate fails to successfully complete the initial training program, he or she will not become a Mac Tools franchisee. Franchisees receive additional training during the first five consecutive working days on his or her Route and at least five additional working days within the first 30 days on his or her Route with the franchisee's District Manager (or a representative of the District Manager). For each Route operated, Mac Tools will train up to two of the franchisee’s employees. Periodically, and on an as-needed basis, Mac Tools may provide mandatory follow-up training programs that franchisees must attend in a location it designates.

Territory: The franchisee is granted the right to distribute the Products, and, if applicable, the SBD Products, in connection with the operation at its Mac Tools Business. The operation of the franchisee's Mac Tools Business includes the operation of at least one assigned Route, and upon the agreement of the franchisee and Mac Tools, on one or more additional Routes. Each Route assigned by Mac Tools consists of a list of stops. It is Mac Tools' policy initially to assign approximately 325 potential customers per Route. Mac Tools makes no representation with respect to whether these potential Customers will purchase the Products or, if applicable, the SBD Products. The appointment of the franchisee, and the assignment of the Stops and the Route to the franchisee, is nonexclusive, except that Mac Tools will not assign any Stops assigned to any of the franchisee's Route(s) to another franchisee, distributor or Mac Tools employee distributors.

Term of Agreement and Renewal: The length of the initial franchise term is 5 years unless terminated earlier under the terms of the Franchise Agreement. Two successive renewal terms of five years each are available, provided that renewal conditions are met.

Obligations and Restrictions: Franchisees are obligated under the Franchise Agreement to participate and use their best efforts in their Mac Tools Business, but they are not required to operate the Route(s). Each Route assigned to franchisees by Mac Tools must be operated by either them or by one of their employees. No other person may operate a franchisee’s Route(s). Franchisees must at all times actively supervise the operation of their Mac Tools Business on each Route to which they have assigned an employee. Franchisees must, at all times actively participate in each Route that has been assigned to them. Only the Products or, if applicable, the SBD Products, may be sold to Customers at the Stops on the franchisee’s Route(s), unless the other product is obtained: (1) by accepting a trade-in from a customer; or (2) at the request of a customer and the franchisee is unable to obtain such product from Mac Tools within the required time period.

Estimated Number of Units: 815

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $3,000 $3,000
Annual Fee $900 $900
Travel and Living Expenses while Training $1,100 $1,500
Initial Starter Inventory Up to $65,000 (less any Veterans Program Incentive or other incentives offered to franchisees)
Vehicle Purchase Lease $10,000 $120,000
Vehicle Painting and Decal Application $0 $8,640
Equipment $0 $1,500
Payment Processing Services $0 $225
Professional Fees $850 $1,800
Insurance $340 per month; $2,040 for first 6 months
Work Attire/Uniforms $200 $200
Advertising Associated with Commencement of Business $50 $250
Licenses, Permits and Authorizations $50 $250
Additional Funds: 3 to 6 Months (Working Capital) $20,000 $50,000
ESTIMATED TOTAL (less any Veterans Program Incentive or other incentives offered) $103,190 $255,305
Other Fees
Type of Fee Amount
Annual Fee $900
On-going Purchases of Products to Replenish Tool Inventory Variable, depending upon sales by franchisee.
Late Charge 1.5% per month (18% per year) or the highest rate permitted by law (whichever is lower), based on the cash price of products purchased on a trade account and not paid when due.
Costs and Legal Fees Will vary under the circumstances.
Indemnity Will vary under the circumstances.
Mac Credit Program - Remittance of Payments Will vary under the circumstances.
Mac Credit Program – Management Fees 9% of the amount of each purchase by the franchisee's customer on a Mac Credit account. (4% of the amount of each purchase by the franchisee's customer on a Mac Credit account is paid to Mac Tools.)
Reimbursement to Mac Tools for Charge-backs for “Mac Credit Select Account” Will vary under the circumstances.
Large Ticket Account (LTA) Administrative or Service Fee(s) 3% of purchase price of Large Ticket item. As of the date of this disclosure document, the average amount of annual LTA administrative or service fees paid by a participating franchisee is $74
MBA Software Licensee Fees Estimated amount of recurring monthly license fee is $25
Extended Terms Program (ETP) Administrative or Service Fee(s) Estimated amount of administrative to service fee(s) for each ETP account is $25

The above information has been taken from the FDD of Mac Tools. Year of FDD: 2016

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