Snap-on Tools

#26

At a Glance

Products & Services: Professional tools & equipment

Number of Locations: 4,785

Total Investment: $19.49K - 295.8K

Founded: 1920

Began Franchising: 1991

About Snap-on Tools

In 1920, a particular wrench could only do one particular job, but Joseph Johnson had an idea to change that. Along with William Seidemann, he began manufacturing ten different sockets that would "snap on" to five interchangeable wrench handles, so that one tool could do the work of five. The Snap-on Wrench Company's representatives sold these new products by taking them to the customers at their places of business and demonstrating their use.

Today, Snap-on Tools franchisees sell far more than just wrenches. They offer over 22,000 products, including hand tools, power tools, diagnostic tools, tool storage and shop equipment, but the way they sell is much the same. Once a week they bring their "mobile stores"--trucks filled with their products--directly to their customers, which include car dealerships, mechanics, marinas and airports.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	3,267	347	915	256
2011	3,247	343	920	237
2010	3,219	349	923	234
2009	3,078	346	884	174

Where Seeking Franchisees: Franchisor is seeking new franchise units in the U.S.,Africa, Asia, Australia/New Zealand, Canada, Eastern Europe, South America, Western Europe.

Startup Costs, Ongoing Fees and Financing

Total Investment: $19,490 - $295,796
Franchise Fee: $5,000 - $15,000
Ongoing Royalty Fee: $107/mo.
Term of Franchise Agreement: 10 years, renewable

Financial Requirements

Net Worth: $30,000
Liquid Cash Available: $17,925 - $80,071

Operations

Franchise can be run from home. 8% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).