Snap-on Tools

Snap-On Tools Franchise

Interested in starting a franchise outside of the food service business? If you like working with your hands and appreciate giving business people and contractors the tools they need to succeed, consider starting a Snap-On Tools franchise. 

This professional tool brand, founded in Milwaukee, offers an extensive product line and a more rugged brand image than McDonald’s or Dunkin’. 

Starting a Snap-On Tools franchise is easier said than done. Read on to discover what it takes to succeed with this business opportunity as a franchisee.

Why start a Snap-On Tools franchise?

Snap-On Tools is a developer, manufacturer, marketer and distributor of tools and equipment solutions worldwide. It's focused on providing high-quality tools to artisans, contractors and workers of all stripes by offering premium products for various needs. 

These include hand tools, power tools, diagnostic equipment and tool storage solutions, serving automotive, manufacturing and other industries.

The Snap-On Tools Incorporated brand has over 19,000 products. It currently operates in over 130 countries and has over 4000 franchisees. 

When you apply to its headquarters in Kenosha, Wisconsin, you can become a new Snap-On Tools franchisee.

There are some significant reasons to consider franchising with this franchisor, including:

• Snap-On Tools has a world-class brand, meaning you don’t need to worry about marketing or building a customer base from scratch.
• More importantly, professionals recognize Snap-On Tools' brand as providing high-quality tools.
• Snap-On Tools franchisees aren’t tied down to real estate. You operate a mobile tool store, so you can work from home without worrying about fixed site expenses like leasehold improvements.
• Snap-On Tools franchisees get a protected and survey list of calls for potential customers. This minimizes the competition you may face in your market.
• Snap-On Tools corporate provides in-house financing support and requires all franchisees to use a proven operating system.

Note that every franchisee has to adhere to certain restrictions. For example, you must maintain a minimum inventory of products specified in your Snap-On Program.

Still, franchise owners will find that this mobile store franchise business model allows excellent flexibility. That’s a big reason why Snap-On Incorporated has become one of the most successful businesses in the franchise industry over the last few years.

Do you get territory exclusivity?

You do. This franchisor provides all new franchisees with a limited List of Calls: a collection of business addresses where the franchisee can offer their products. Note that your customer total on your List of Calls will vary depending on your location and your local area's total population and business concentration.

Generally, every List of Calls has at least 200 potential core customers. Thus, you have an initial list of customers to call and more to grow in the future. 

Thanks to this calling exclusivity, you never have to worry about knocking on the door of a customer that another Snap-On Tools franchisee has already approached.

Related: Snap-On Falls On Lackluster Guidance

What support resources are available for a new Snap-On Tools franchise?

You aren’t in your business endeavors alone when you sign on with Snap-On Tools. This franchisor provides you with tons of support and assistance.

For example, when you become a Snap-On Tools store owner, you’ll be able to attend exclusive meetings and conventions and access an exclusive company newsletter and toll-free support line. 

In conjunction with an online support channel, you’ll always be able to ask corporate for assistance, whether running your location, hiring an employee or something else altogether.

When the time comes, Snap-On Tools will help you choose the perfect market for your operations. With proprietary software, you can analyze your current market opportunities, then find the ideal place to set up shop. 

When your grand opening is on the horizon, Snap-On Tools will send resources and tutorials to you so you can get the proverbial ground running.

What about marketing? Snap-On Tools also does a great job in terms of marketing support. Corporate provides you with ad templates, which you can use to market effectively to your target audience members, like small business owners and artisans.

You'll get national and regional advertising support and advice in the long term. That'll help you take advantage of national marketing campaigns and market more specifically to the people in your local area. 

Online marketing is included in this support; Snap-On Tools provides resources and developer assistance for social media marketing, email marketing and even website development.

That’s particularly important, given that your Snap-On Tools franchise will primarily operate online. With a stellar website, your target customers will find your location easily and enjoy ordering tools from you. 

Thanks to all this support, many franchisees report immediate or initial success upon opening their locations. Even if you already have some web development training, this can be an excellent benefit to ease your transition into business ownership.

Related: Snap Up Some Snap-On On Post-Earnings Weakness

What does a Snap-On Tools franchise cost?

Starting a Snap-On Tools franchise will cost some money, namely an initial franchise fee of between $8000 and $16,000. You’ll also need a net worth of between $40,000 and $55,000; Snap-On Tools usually requires all of that net worth to be in cash or liquid capital. 

In total, expect your initial investment to be between $200,000 and $500,000, depending on market competitiveness and initial equipment expenditures. The franchise disclosure document (FDD) will specify the exact details.

On the plus side, royalty fees are very low: just $135 per month. If the arrangement works out for you and the franchisor, you can renew your 10-year term of agreement with the same terms. The 10-year franchise agreement is also subject to renegotiation.

For example, if you want to lower the royalty fees, you may be able to secure a deal like that if your Snap-On Tools location has performed well over the last decade. 

Still, remember that your operating costs will usually decrease the longer you remain with your franchise business. That’s because you’ll be able to pay off any loans or other significant equipment investments you had to make at the beginning of your business’s lifespan.

Is there financial aid?

Yes. Snap-On Tools first provides all veterans with up to $20,000 off the cost of their startup inventory. Thus, veterans may be incentivized to start a Snap-On Tools franchise since it will cost them less of their own cash to do so.

Furthermore, Snap-On Tools provides great in-house financing services to cover franchise fees, startup costs, inventory and accounts receivable. 

If this isn’t enough to cover your initial expenses, Snap-On Tools can connect you to third-party lending organizations and financing solutions to cover any other fees you may need.

The cost of starting a Snap-On Tools franchise could be a lot more achievable than you might initially think.

Related: It’s Time to Snap Up Some Snap-On Stock

What does training entail for a new Snap-On Tools franchise?

You won’t have to start your Snap-On Tools mobile franchise location alone. Snap-On Tools corporate will also provide comprehensive training, totaling 135 hours of on-the-job training and 80.5 hours of classroom training.

Before your franchise location opens, you’ll attend the training school to learn how to operate your business. This is located in Grapevine, Texas, although Snap-On Tools relocates the classroom training to other locations or conducts it online from time to time.

Regardless, you must complete the initial training module before you begin operations. Four to eight months after you start operating your business, you'll need to attend the Franchise Store Management Training — Level 2, held virtually using web-based meetings.

In this way, Snap-On Tools doesn't just provide you with initial training; it also provides you with ongoing training support so you continue to evolve and improve your leadership style. 

Sometimes, you may need to participate in ongoing training, such as Franchise Performance Team meetings, usually held about once a quarter.

Keep this in mind, as it may dictate how often you must travel to maintain your franchisee obligations. If you do excellent with your Snap-On Tools location, you may need to attend these quarterly training modules less frequently.

Related: Snap-On Named Charter Member of National Environmental Achievement Track

Summary

Ultimately, a Snap-On Tools franchise opportunity could be an excellent choice for your business ambitions. Consider applying for a franchised location today.

Check out Entrepreneur’s other articles for more information about Snap-On Tools and other franchise opportunities.