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- 2023 Franchise 500 Rank
#20 Ranked #21 last year
- Initial investment
$201K - $465K
- Units as of 2022
Snap-On Tools, founded in 1920 and franchising since 1991, is one of the leading designers, manufacturers, and marketers of high-end tools. They boast that they offer over 22,000 products to consumers. Snap-On Tools usually sells high-quality equipment for professional use. Snap-On Tools’ focus is to support easy, safe, and professional automotive repairs. With their tools, mechanics may have an easier time fixing cars, and the brand wants to make that possible for everyone working on any machinery.
You can typically find their Snap-On wrench, talon grip pliers, or dead blow hammers all on their tool website. They also guarantee quality work for everything they create.
As a franchisee, you might supply these high-quality, innovative tools to every home, mechanic, fire station, and garage in your area. You may be a part of keeping safer vehicles on the road for your community.
Why You May Want to Start a Snap-On Tools Franchise
If you enjoy making roads safer, you may feel right at home in a Snap-On Tools franchise. And you might have a steady amount of business—vehicles always need a little TLC. With a global network of more than 4,300 franchises, Snap-On Tools have enjoyed franchising. Over 3,200 of their franchises are located in the United States.
They offer in-depth and personalized support to many of their franchisees, especially new ones. They usually provide training and marketing, and helpful managers may be there to guide you.
They might make sure your business is incorporated fully into the Snap-On Tools family.
What Might Make a Snap-On Tools Franchise a Good Choice?
To be part of the Snap-On Tools team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. It is also important that you do not forget about the presence of ongoing fees, which will include royalty and renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Snap-On Tools generally wants people who are excited about owning and running a business to become their franchisees. You may have loyal customers and enjoy the benefits of working in an established industry. To sweeten the pot, you might get to work with other people who love tools as much as you do!
How Do You Open a Snap-On Tools Franchise?
You can open your Snap-On Tools business in a few simple steps. First, submit a franchise request form. A manager may call you to set up an online discovery meeting if you appear to be a good fit. The manager usually helps you digest the Franchise Disclosure Document, as well. Together, you typically schedule a ride-along with an existing franchisee to give you a feel of the day-to-day operations of the franchise.
Finally, you can sign up to open your franchise. A multi-day program is up next at corporate headquarters in Kenosha, Wisconsin, followed by about three weeks in a mobile store with a performance team member. After this, you should be confident and ready to get your franchise off the ground.
Snap-On Tools is willing to be with you as you start your business. By the time you open the doors of your new Snap-On Tools franchise, you may have everything you need in your toolbox.
About Snap-on Tools
- Parent Company
- Snap-on Inc.
- Nick Pinchuk, Chairman, President & CEO
- Corporate Address
2801 80th St.
Kenosha, WI 53143
- Franchising Since
- 1991 (32 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: Africa, Asia, Australia/New Zealand, Europe (Western), Canada
- # of Units
- 4,771 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Snap-on 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
- $8,000 - $16,000
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
- $201,433 - $465,436
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
- $38,126 - $54,288
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
- $38,126 - $54,288
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $20,000 off cost of startup inventory
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- 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
- Snap-on Tools offers in-house financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable
- Third Party Financing
- Snap-on 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
- 135 hours
- Classroom Training
- 80.5 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaRegional AdvertisingSocial MediaWebsite DevelopmentEmail Marketing
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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.
- # of employees required to run
- 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 Snap-on Tools? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Snap-on Tools landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Snap-on Tools ranked on other franchise lists? Find out below.
Ranked #20 in 2023
Franchise 500 Ranking
Ranked #93 in 2022
Ranked #20 in 2022
Top Global Franchises
Ranked #1 in 2022
Top Franchises for Veterans
Ranked #1 in Tools Distribution in 2021
Best of the Best
Ranked #1 in 2023
#1 in Tools Distribution Category
Ranked #2 in 2022
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