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Mac Tools Franchise Costs, Fees & FDD

Year Business Began: 1938

Franchising Since: 2011

Headquarters: Dublin, Ohio

Estimated Number of Units: 1,185

Franchise Description: The franchisor is Stanley Industrial & Automotive, LLC through its Mac Tools Division. The franchisee will receive the right to operate a business involving the mobile sale of professional automotive tools and similar products manufactured, distributed and/or sold by Mac Tools. The franchisee will conduct the business by operating a truck or van equipped with displays of tool inventory on a route of assigned stops. The franchisor may also periodically provide franchisees with the opportunity to purchase and distribute certain products sold under other brands owned by Stanley Industrial & Automotive, LLC or Stanley Black & Decker, Inc. (the “SBD products”).

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Training Overview: For each route that franchisees operate, we will train up to two of their employees. Unless a franchise candidate has received written consent from the franchisor regarding an exception to this policy, it is required that a franchise candidate accompany an existing Mac Tools franchisee or distributor, selected by the franchisor, 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 to 11 days (depending upon training class size) held in Dublin, Ohio (or such other location in the Columbus, Ohio metropolitan area determined by the franchisor). Unless a franchise candidate has received written consent from the franchisor regarding an exception to this policy, if a franchisee candidate fails to successfully complete the initial training program, he or she will not become a Mac Tools franchisee. Franchisees receive additional one-on-one 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 a Mac Tools representative. The franchisor may provide optional supplemental training courses. Ongoing training will be held at the facilities of Mac Tools in Dublin, Ohio or at another location designated by the franchisor. Periodically, and on an as-needed basis, the franchisor may provide mandatory follow-up training programs that franchisees must attend in a location it designates.

Territory Granted: Franchisees are granted the right to distribute the products, and the SBD Products, in connection with the operation of their Mac Tools business. Franchisees will operate one assigned route, and upon the agreement of the franchisor and the franchisee, they may operate more than one route. Each route assigned by Mac Tools consists of a list of stops. At each of the stops, there may be one or more potential customers to whom the franchisee may sell the products. It is the franchisor’s policy initially to assign a minimum of 325 potential customers per route. Franchisees will not receive an exclusive territory. However, the franchisor will not assign any stops assigned to any of a franchisee’s route(s) to another franchisee, distributor, or Mac Tools employee distributor.

Obligations and Restrictions: Unless the franchisor agrees to allow them to operate their Mac Tools business as an individual, franchisees must form a corporation or limited liability company to operate their Mac Tools business. Franchisees must actively participate and use their best efforts in the Mac Tools business and in each route assigned to them. If franchisees have only one route, they must personally operate the route unless the franchisor agrees otherwise. If franchisees have more than one route, they are not required to personally operate the additional route. An employee of theirs may operate the additional route, but franchisees must actively oversee any route operated by an employee and supervise their employee(s). Franchisees may sell the products and the SBD products only to customers at stops on their route. The customers must be commercial users of tools and shop equipment such as automotive after-market businesses, service stations, independent garages, car and truck dealerships, cycle shops, lawn mower shops, airports, marinas, machine shops, factories, farm implement dealers or repairers, and commercial agricultural businesses. The products and SBD products may not be sold to a person in the business of reselling tools and equipment or to a person who will use them primarily for personal, family, household, or other consumer purposes.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years unless terminated earlier under the terms of the Franchise Agreement. One renewal term of 10 years is available if conditions are met.

Financial Assistance: The franchisor has a contractual relationship with a third party provider, Wells Fargo, under which Wells Fargo offers financing to qualified applicants. The terms and conditions of the Wells Fargo financing are determined solely by Wells Fargo, or its affiliate Wells Fargo Equipment Finance, Inc., at the determination of Wells Fargo and dependent on the state where the franchisee resides. Wells Fargo offers financing for the purchase of starter inventory and the franchisee’s truck. If franchisees would like to obtain financing for working capital and other expenses they may incur in connection with the purchase and operation of their Mac Tools business, Wells Fargo also offers qualified applicants “Time Payment Growth” financing. Franchisees may purchase the products and SBD products on credit through a trade account that the franchisor establishes and maintains for them. Franchisees are obligated to purchase their computer system from the franchisor. The cost of the computer system will also be charged to franchisees through their trade account.

Estimated Initial Investment
Name of FeeLowHigh
Initial Franchise Fee$8,000$8,000
Annual Fee$1,200$1,200
Travel and Living Expenses While Training$2,025$4,050
Starter Inventory$71,00$76,000
Truck Lease or Purchase$13,800$180,000
Truck Painting and Decal Application$0$10,550
Tool Displays$545$2,000
Payment Processing Services$0$500
Professional Fees$850$1,800
Insurance (for first 6 months)$1,700$4,800
Uniforms$0$75
Computer System$4,000$5,000
Opening Advertising and Business Cards$50$250
Licenses, Permits and Authorizations$150$350
Required Monthly Technology Fee (for first 6 months)$0$900
Additional Technology Fee$0$500
Additional Monthly Technology Fee$0$900
Business Software Fees for first 6 months (including initial business software fee and monthly business software fee)$550$550
Additional Funds: 3 to 6 months (working capital)$20,000$50,000
ESTIMATED TOTAL (for new franchise, less any incentives offered)$122,870$346,725
 
Other Fees
Type of FeeAmount
Annual Fee$1,200
Ongoing Purchases of Products to Replenish Tool InventoryVariable, depending upon sales by franchisee.
Late Charge1.5% 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 Incurred by the FranchisorWill vary under the circumstances.
IndemnityWill vary under the circumstances.
Customer Credit Program – Remittance of PaymentsWill vary under the circumstances.
Customer Credit Program – Management FeesUp to 15%, and currently 9%, of the amount of each purchase by the customer on a Customer Credit Program account. Upon notice to franchisees, the percentage may be modified by the franchisor and the credit provider.
Reimbursement for Customer Purchases, Chargebacks for Certain Credit AccountsWill vary under the circumstances.
Large Ticket Account (LTA) Special Purchasing Program - Administrative FeeUp to 10% of the purchase price for each inventory eligible for the LTA Program. This fee amount will be included in the invoice for LTA purchases. During the prior fiscal year, administrative fees paid by participating franchisees ranged from $188 to $1,345.
Extended Terms Program (ETP) Special Purchasing Program – Administrative FeeAdministrative fee up to $50 for each route operated by franchisee or each ETP account of franchisee. The franchisor estimates a participating franchisee will pay a fee of $50 to $100.
Required Monthly Technology FeeUp to $150 per month.
Business Software FeesAssuming one route: Initial fee up to $500 per route or user. Recurring monthly fee up to $150 per route or user.
Renewal FeeOne-half of the then-current initial franchise fee.
Transfer FeeThe transfer fee is dependent upon the term of the Franchise Agreement signed by the new Mac Tools franchisee. Fee is one-fourth of the then-current initial franchise fee if franchisees are transferring a route.
Training Tuition Fee or Attendance FeeEstimated amount of tuition fee or attendance fee is a maximum of $3,000 for each person trained.
Fee for Insufficient Funds or Other Similar ReasonsFee up to $50 for each time a franchisee misses a payment to Mac Tools because of insufficient funds in the franchisee’s bank account or other similar reasons.
Restocking FeeFee of up to 20% of the purchase price paid.
Consumer Price Index Increases to All Fees, Costs, Charges, Contributions and Dollar AmountsIncrease in fees, costs, charges, contributions and dollar amounts in the Franchise Agreement and any other agreement with the franchisor depending on right to increase fees in the agreements and the Consumer Price Index.
Shipping FeesShipping costs vary.
The above information has been compiled from the FDD of Mac Tools. Year of FDD: 2025.
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