Matco Tools Franchise Cost & Fees

Date of Incorporation: 1993

Franchising Since: 1993

Headquarters: Ohio

Country: U.S.

Description: Matco is a manufacturer and distributor of professional quality tools, tool boxes, and service equipment. Matco has developed a distinctive business system relating to the establishment and operation of Matco mobile distributorships which sell tools, tool boxes, service equipment, and other goods and services, including, for example, apparel, model cars and other collectible items, and consumables (such as mechanic's hand soaps), and such other items that Matco may offer. Matco mobile distributors offer and sell products to professional mechanics and other businesses which operate from a single location and purchase tools for their own use. The products currently consist of more than 15,000 items, many of which are manufactured by or for Matco, and are distributed by Matco and sold to its distributor network.

Franchise Offer: Matco offers franchisees the right to enter into a distributorship agreement, which grants the franchisee the right to purchase, resell, and service the Products as a mobile distributor under the System. The franchise will operate principally from a vehicle, purchase the products from Matco, and sell the products to retail customers. These retail customers are typically individual mechanics, or businesses that operate from a single location, and who generally purchase the products for their own use. The franchisee must operate only at the locations identified as potential stops along their proposed route and identified in the list of potential customers.

Financial Assistance: Matco offers a number of financing programs to its distributors.  This includes financing on the initial inventory and financing of time payment reserve account deposit, and also financing for open account product purchases.

Training and Assistance: Matco will provide the franchisee with at least 60 hours of mandatory initial classroom training at Matcos corporate offices in Stow, Ohio, or at such other location as may be designated by Matco. The franchisee and operator must successfully complete the Training Program before operating the Distributorship.

Territory: The franchisee will only be allowed to operate the distributorship at those locations identified on the List of Calls and on the Potential Customers List. Prior to establishing a List of Calls, Matco will conduct a survey of various geographic areas, prior Matco distributor routes, and potential new distributor routes to determine a suitable List of Calls that contains a minimum of 325 potential customers.

Term of Agreement and Renewal: The initial franchise term is for a length of 10 years, with an option to renew for a period of 10 years.

Obligations and Restrictions: The franchisee must use best efforts to promote the sale of the products and to provide service and warranty support to actual and potential customers. The franchisee will be responsible for all aspects of managing the business including, but not limited to, extending credit, budgeting, monitoring and collecting time payment accounts, collecting PSA Gold Card accounts, sales, purchases, and inventory management and control.

Total Number of Units: 1,445 franchised units.

Investment Tables:

Initial Investment:

Ongoing Fees:

Date of FDD: 2009

The above information has been taken from the UFOC/FDD of Matco Tools.

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