Matco Tools Franchise Costs, Fees & FDD

Year Business Began: 1946

Franchising Since: 1993

Headquarters: Stow, Ohio

Estimated Number of Units: 1,905

Franchise Description: Matco Tools Corporation is the franchisor. Matco is a manufacturer and distributor of professional quality mechanics’ tools and service equipment. The franchisor has developed a distinctive business system relating to the establishment and operation of Matco mobile distributorships which sell tools, tool boxes, service equipment, automotive diagnostic services, software subscriptions, 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 in its sole discretion offer.
Training Overview: The franchisor will provide the principal operator with at least 50 hours of mandatory initial classroom training (MBST) at Matco’s corporate offices in Stow, Ohio, or at such other location as may be designated by the franchisor. In addition to the MBST Program, the franchisor also offers the Matco Business System Continuation Training (MBSCT) Program, which is Phase 2 of the training. The franchisor may also require the principal owner to attend and successfully complete at least 15 hours of mandatory continuation MBSCT virtually, or at such other location as may be designated by Matco between the 2nd and 5th month in business. The franchisor may schedule periodic meetings with Matco personnel and other distributors for additional training, product updates and business seminars. Attendance at these meetings is voluntary.

Territory Granted: Franchisees, their principal owner, and any operator/employee will only be allowed to operate their distributorship at those locations identified on the List of Calls (part of the distributorship agreement). The Distributorship Agreement sometimes refers to this as a “protected territory.” Prior to establishing a distributor’s List of Calls, the franchisor will conduct a survey of various prior Matco distributor routes and potential new distributor routes to determine a suitable List of Calls that contains, as of the date of the distributorship agreement, a minimum of 325 potential customers, the location of which will be identified on the List of Calls. The franchisor provides no assurance that the potential customers will actually become customers, or that due to economics, demographics or other reasons, the number of actual or potential customers, and/or the businesses identified on the List of Calls, will not increase or decrease after the date of the Distributorship Agreement. The franchisor is under no obligation to supplement the List of Calls with additional stops or potential customers in the event the number of potential customers declines. If, and for so long as, franchisees are in compliance with the Distributorship Agreement, the franchisor will not operate, or grant a license or franchise to operate, a Matco mobile distributorship that will be authorized to sell products to the potential customers or actual customers identified on the List of Calls.

Obligations and Restrictions: Franchisees must use their best efforts to promote the sale of the products and to provide service and warranty support to actual and potential customers. Franchisees 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 time payment accounts, sales, purchases, and inventory management and control. The franchisor typically will not grant a distributorship to a distributor with more than two owners. However, the franchisor considers each application on a case-by-case basis. Franchisees must not sell, offer for sale or distribute products and other merchandise not purchased from Matco (or other designated suppliers) or approved by the franchisor or its affiliates except for items that are traded in by customers.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for 10 years, if requirements are met.

Financial Assistance: The franchisor offers a number of financing programs to its distributors. There are five inventory financing programs, and one other financing program, that may be offered by the franchisor, to qualified distributors.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$10,000	$10,000
Initial Inventory	$55,500	$92,000
Acquisition and Establishment of Time Payment Reserve Accounts -or- Time Payment Line of Credit	$22,000   $4,700	$22,000 $9,325
Mobile Store — 1.5 months lease payments	$3,920	$211,633
Computer Hardware	$3,100	$4,200
Computer Software and Internet Service - three months payments	$2,050	$3,250
Insurance - three months premiums	$795	$3,591
Travel, Lodging and Meal Expenses	$179	$3,015
Professional Services	$310	$5,852
Fixtures, Supplies, Licenses	$525	$4,400
Additional Funds - three months	$5,000	$13,500
ESTIMATED TOTAL	$108,079	$382,766

 
Other Fees

Type of Fee	Amount
Minimum Inventory Purchases	Maintain an inventory of products at least equal to the starter inventory; and maintain a ratio of purchase average to total sales of 60%. Also, during the first year of operations the franchisee must participate in the NPP program.
Computer Maintenance and Support Charge	$720 or $1,120
License Fee for Credit Card Processing Software	$350
License Fee for Signature Pad Processing Software	$45
Additional Training Fee (for business partner)	$295
Field Training for Additional Replacement Employees and Operators	$1,500 per week for field training provided to the 3rd and subsequent employees/operators.
Per Diem Training for Additional or Replacement Employees and Operators	$300 per day, per attendee.
Web Page Maintenance Fee	$195
Insurance	$256 to $1,197
Late Fee on Open Purchase Account	5% of the amount due per week; maximum $125.
Collection Charge	5-10% of the amount collected by the franchisor on behalf of the distributor
Inventory Returns, Restocking Fee	15% restocking fee (35% in limited circumstances).
Repair Kits	$10 to $40 per kit (but, generally $10 per kit).
Successor Distributorship Fee	50% of the franchisor’s then-current initial franchise fee.
Management Fee – Transfer Upon Bankruptcy	Currently, $500 per day, plus any third-party charges and professional fees.

The above information has been compiled from the FDD of Matco Tools. Year of FDD: 2025.

NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise--and receipt of which must be formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the "Industry" pages accessible from the drop-down menu above.

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