- 2023 Franchise 500 Rank
#31 Ranked #29 last year
- Initial investment
$77K - $309K
- Units as of 2022
1,919 6.0% over 3 years
Where else can you run a mobile company that blends a love of cars, service, and freedom of the road?
Matco Tools manufactures and distributes automotive repair tools, diagnostics, and toolboxes with a product line of over 25,000 items. Matco has more than 1,750 franchisees across the U.S. and Canada. As a franchisee, you may sell Matco Tools products to anyone from car enthusiasts to auto mechanics.
Matco Tools was founded in 1979 and began franchising in 1993.
Why You May Want to Start a Matco Tools Franchise
You may need to lease or purchase a truck for the job, but this truck generally becomes your business's home. Your business on wheels speaks for itself: no office, no rent payments, and a flexible schedule. You might also receive a protected territory and individualized route to visit any one of the predetermined customers.
Though working for yourself is typically a great perk of owning a franchise, the service end is equally important. When you work for Matco Tools, you try to save auto technicians time and money by bringing them exactly what they need to keep going. When they have the right tools to stay in business, you usually do too.
What Might Make a Matco Tools a Good Choice?
To be part of the Matco Tools team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
If you're a veteran, you may receive incentives in the form of a discount off the initial investment. You might also get the branding and marketing you need without having to pay an ongoing royalty or ad royalty fee.
It's no wonder Matco Tools has been ranked in Entrepreneur’s Franchise 500 many times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
How To Start a Matco Tools Franchise
To start your Matco Tools franchise, you should make sure that you have done research and find out if this opportunity is a good fit for you. If you have, you may reach out to them via a franchise request form.
After submitting the form, a franchise sales manager might get in touch with you and review your application. This is your chance to ask questions. Many of the franchise sales managers were once Matco Tools franchisees, so they may know what it's like to be on the other end. If they determine that you're a good fit for the franchise, they generally send you the Franchise Disclosure Document.
If you still want to open a Matco Tools franchise after reviewing the Franchise Disclosure Document, you might go on a few truck rides with local franchisees. Additionally, as a potential franchisee, you will receive dozens of hours of classroom and on-the-job training. Matco Tools strives to teach you how to use their business model to your full advantage.
About Matco Tools
- Parent Company
- Timothy Gilmore, President
- Corporate Address
4403 Allen Rd.
Stow, OH 44224
- Franchising Since
- 1993 (2023-1993 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Canada
- # of Units
- 1,919 (as of 2022)
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.
- Initial Investment
- $76,819 - $309,133
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.
- 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.
- Cash Requirement
- $5,000 - $13,500
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $10,000 off initial inventory
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Term of Agreement
- 10 years
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?
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
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
- 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.
Interested in ownership opportunities like Matco Tools? Request a free consultation with a Franchise Advisor now.
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.
Ranked #31 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #4 in 2023
Check out the top franchises that offer you the freedom of working from home or on-the-go.
Ranked #38 in 2023
If you're interested in an opportunity with international appeal, start your search with our ranking of the top franchises seeking to expand outside the U.S.
Ranked #3 in 2023
Buying a franchise on a budget? No problem. Here are the top franchises that can be started for less than $100,000. For more low-cost opportunities, see our lists of franchises that can be started for less than $50,000 and less than $150,000.
Ranked #5 in 2022
Our ranking of the top 150 franchises offering incentives and other programs to help veterans become franchisees.
Are you eager to see what else is out there? Browse franchises that are similar to Matco Tools.
Cornwell Quality Tools
- Automotive tools and equipment
Valvoline Instant Oil Change
- Oil changes and preventive maintenance
Phenix Salon Suites
- Salon suites
- Shaved-ice trucks
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