- 2023 Franchise 500 Rank
#31 Ranked #29 last year
- Initial investment
$77K - $314K
- Units as of 2023
1,950 7.8% over 3 years
What services does Matco Tools offer?
When you open a Matco Tools franchise, you do more than simply sell tools. You provide a tremendous service to automotive technicians by bringing the tools right to them.
What happens if the technician desperately needs a specific tool but doesn’t have the money to purchase it? No problem; in-house financing is one of the services you can offer as a Matco distributor. This allows the technician to buy the tools they desperately need to continue their business without the stress of having to pay for them upfront.
You can rest easy knowing that with this mobile tool franchise, you are providing only the highest quality tools backed by a name they can trust.
Professional mechanics know that when they purchase tools from a Matco distributor, they have the ongoing support they need, including warranty and tool replacement services.
What products does Matco provide?
Operating in all 50 states, Canada and Puerto Rico, Matco Tools is dedicated to providing the best mechanical tools in the industry. A lot of time is put into research and testing so that hundreds of new tools can be added to the inventory list every year.
Just a few of the more than 19,000 tools Matco offers include:
Matco Tools is known for providing the industry's strongest, most durable toolboxes. Technicians can design and choose from hundreds of options to meet their needs.
Ratchets and sockets
One feature that makes Matco Tools stand out is the oversized markings on their ratchets and sockets, making it easier for technicians to grab the right size the first time.
The counter-torque counterbore feature provides for better durability, and the opti-torque allows for off-corner fastener engagement, which helps distribute the stress and helps prolong the life of the tool.
Matco wrenches are designed with mechanics in mind, providing superior strength and efficiency. They allow the technician to work in tight areas while giving the strength and durability to loosen even the tightest nut.
With top-of-the-line impact wrenches, air ratchets, die grinders, air hammers and sanders, Matco offers their customers only the best power tools on the market.
What advantages are there to being a Matco Tools franchisee?
If you want to own your own business and invest in one of the top franchises on the market, then investing in a Matco Tools franchise could be the answer.
Ranked as a top franchise in Entrepreneur’s Franchise 500, Matco Tools has been recognized as an invaluable resource for all automotive professionals.
Being a mobile business with no need for a brick-and-mortar location, this convenient, low-cost franchise could be the business opportunity you have been looking for.
Lower start-up costs
Being a mobile franchise without requiring a storefront allows for lower start-up costs.
If you are looking for a franchise opportunity but aren’t quite ready to hire and manage staff, Matco can be an excellent choice.
Efficiently run by one or two people, you can run this franchise business independently until you are ready to expand and hire employees.
Since this is a mobile franchise, you can set your hours. You can choose the days and times you want to work and make it work around your schedule.
With eye-catching advertising on every truck, Matco trucks provide free advertising wherever you go. Being a mobile business, you can travel to your customers rather than them having to come to you, providing more exposure.
Strong customer relationships
As a franchise owner, you will be given approximately 325 potential customers to serve. You will quickly build strong working relationships with the technicians being that you go to them and become their primary contact.
Traveling to their location lets you see firsthand where they work and analyze their situation. This allows you to make a more personalized sales pitch when suggesting products to help make their job easier.
What is the process for opening a Matco Tools franchise?
Once you have researched and decided that opening a Matco Tool franchise is for you, the next step is to apply.
Once your application is received, you will be emailed a confirmation receipt from the franchise team. Once your financial and background checks are done, you will receive your franchise approval if you meet all the requirements.
When considering opening a Matco Tools franchise, the cost (including the initial investment) is one of the main things to consider. The total investment a new franchisee can expect is anywhere in the range of $77,236 to $313,646.
Continue reading for a breakdown of some startup costs of opening your franchise.
- Liquid capital required: $30,000.
- Net worth: $75,000.
- Initial franchise fee: $8,000.
- Royalty fees: $0.
- Initial inventory: $50,000 to $84,000.
- Time payment line of credit: $4,700 to $9,325.
- Mobile store lease: $2,804 to $163,584.
- Computer hardware, software and Internet: $4,950 to $6,425.
- Insurance (3 months premiums): $768 to $3,118.
- Travel expenses: $179 to $2,767.
- Professional services (accountants and lawyers): $310 to $5,852.
- Fixtures, supplies and licenses: $525 to $4,400.
- Three months' living expenses: $5,000 to $13,500.
What is the income potential of a Matco Tools franchise?
When you follow the tried-and-true Matco business model, you are sure to succeed.
Being that you are your own boss, the amount you make is entirely up to you and depends on the following factors:
- How much time will you dedicate to the business?
- How well can you pitch and sell the products to your customers?
- How well can you manage money?
- How low are you able to keep your ongoing business expenses?
- How much inventory will you keep on hand?
The top Matco distributors earn roughly $670,738, with the average franchise bringing in $461.338 and the lower end making $308,563.
What training is provided when opening a new franchise?
Offering a world-class training program, Matco provides the best sales and business training in the automotive tool franchise industry.
This intensive training program consists of at least 90 hours of initial classroom training at the corporate office in Stow, Ohio. The Matco Business System Training Program includes:
- Sales training.
- Business management.
- Tool-specific training.
- Software training.
Franchise owners will also have access to Matco University. This online training platform is a continuation of everything franchise owners are initially taught and contains content on:
- Product demonstration.
- Product comparisons.
- Instructor presentations.
- MDBS tips.
- Business management tips.
Related: Researching Franchise Training
Start a Matco Tools franchise today
With the convenience of being a mobile business and the ability to choose your hours, you can fit this business into your life rather than trying to fit your life into your business.
With a low initial investment and unlimited earning potential, starting a Matco Tools franchise can open a world of possibilities for individuals looking to expand their horizons and become their own boss.
Check out Entrepreneur’s other articles for more information about Matco Tools and other franchise opportunities.
About Matco Tools
|Related Categories||Tools Distribution, Miscellaneous Retail Businesses, Miscellaneous Automotive Products & Services, Automotive|
|Leadership||Timothy Gilmore, President|
4403 Allen Rd.
Stow, OH 44224
|Social||Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest|
|Franchising Since||1993 (30 years)|
|# of employees at HQ||340|
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Canada
|# of Units||1,950 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Matco Tools franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$77,236 - $313,646|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
|$5,000 - $13,500|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|$10,000 off initial inventory|
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|In-House Financing||Matco Tools offers in-house financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
|Third Party Financing||Matco Tools has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||80 hours|
|Classroom Training||90 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Matco Tools landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Matco Tools ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Matco Tools.
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