Risk Score
Pending analysis
Investment Range
$9,750 - $346,725
Franchise Fee
$8,000
Min Cash Required
$20,000
Total US Locations
820
Business Summary
Mac Tools operates a mobile tool distribution business where franchisees sell professional automotive tools and similar products directly from a truck. Franchisees are assigned a route with a minimum of 325 potential customers, including professional mechanics and various automotive and commercial businesses that use tools and shop equipment. The initial franchise term is 10 years, with an option to renew for one additional 10-year term.
Corporate History
Mac Tools has a long history, having manufactured tools and offered distributorships for mobile distribution of professional hand tools and equipment for over 86 years. Initially, these were tool distributorships, not franchises. Mac Tools began offering franchises in Kentucky in March 2007 through a predecessor, while still operating distributorships in other states. By November 2011, Mac Tools ceased offering tool distributorships and transitioned to offering franchises across all U.S. states. In December 2013, due to a corporate restructuring, Mac Tools became a division of Stanley Industrial & Automotive, LLC, an indirect subsidiary of its ultimate parent, Stanley Black & Decker, Inc., and continued its franchising efforts. An affiliate, Mac Tools Canada Inc., has offered Mac Tools franchises in Canada since 2012, after previously offering distributorships from 2001.
Financial Overview
Investment Range
$9,750 - $346,725
Franchise Fee (Low)
$8,000
Franchise Fee (High)
$8,000
Minimum Cash Required
$20,000
Equipment Costs (Low)
$18,345
Equipment Costs (High)
$197,550
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Stanley Black & Decker, Inc., the ultimate parent company of Mac Tools, reported net earnings of $294.3 million in 2024, recovering from a net loss of $(310.5) million in 2023. The company exhibits positive working capital. However, significant non-cash impairment charges were recognized for intangible assets: $41.0 million in 2024 for the Lenox trade name and $124.0 million in 2023 for the Irwin and Troy-Bilt trade names. A substantial environmental accrued liability of $161.8 million exists for the Centredale Site, with a notable increase of $142.3 million in 2024. Additionally, an ongoing CPSC investigation carries a potential $32 million civil penalty, though the financial impact is currently unassessable. The financial statements received an unqualified opinion from the auditors, indicating they present fairly.
Financing Details
Mac Tools does not currently offer direct financing to its franchisees. However, it maintains a contractual relationship with Wells Fargo Bank, N.A. and Wells Fargo Equipment Finance, Inc., which provides financing options to qualified applicants for the purchase of starter inventory, a truck, and potentially working capital. Mac Tools receives a commission of up to 5.25 percentage points of the interest rate from Wells Fargo for these financing referrals. As of the FDD issuance date, Wells Fargo offers financing for starter inventory over 120 months at an annual interest rate of 9.99% and for trucks also at 9.99% annually, with the truck loan term varying. Wells Fargo also offers Time Payment Growth financing, typically $25,750 (ranging from $20,000 to $50,000), which is integrated into the starter inventory loan. This amount is held by Mac Tools and credited weekly to the franchisee's trade account, with the amount varying based on accounts receivable growth. Mac Tools may, in the future, offer its own financing with similar terms. Franchisee indebtedness to Mac Tools, including trade accounts, is secured by a security interest in certain business personal property, and business entity owners are typically required to provide personal guarantees.
Performance Metrics
Total US Locations
820
Franchised Units
820
Corporate Units
0
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
11
Litigation Summary
Mac Tools has disclosed 11 litigation matters. Five cases are currently pending. These include a class action lawsuit filed in February 2025 by a former Mac Tools franchisee, alleging misclassification of California franchisees and distributors as independent contractors instead of employees, and seeking civil penalties. There are also four derivative complaints filed in 2023 against Stanley Black & Decker, Inc. (Mac Tools' parent company) and its officers, alleging securities law violations and breach of fiduciary duties, all of which are stayed pending the class action. Six concluded civil actions are also noted. These include three cases from 2021-2022 alleging misclassification of distributors/franchisees as independent contractors (Streedharan, Dawley, Clarke), which were settled in 2023-2024. One class action against Stanley Black & Decker, Inc. regarding product marketing was settled in 2022. Another case in 2019 by Mac Tools against a franchisee for replevin and damages was settled in 2023. Additionally, in 1999, Stanley (the ultimate parent company) entered into consent decrees with the FTC and two states regarding 'Made in U.S.A.' labeling on mechanics tools, which terminated in 2019.
Bankruptcy History
Mac Tools has no bankruptcy history to report for itself, its predecessors, affiliates, officers, or general partners.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Mac Tools franchisees must: provide timely written notice (between 30 days and 6 months before expiration), be in good standing and in full compliance with all agreements, sign Mac Tools' then-current standard franchise agreement (which may have different terms), execute a general release of claims against Mac Tools and its affiliates, meet current qualifications and training requirements (including specific training for renewing franchisees), agree to upgrade their truck to current brand standards, pay a non-refundable renewal fee equal to half of the then-current initial franchise fee, and not have engaged in prohibited abusive or unprofessional behavior towards Mac Tools, its affiliates, or suppliers.
Training & Support Program
Franchisor Assistance
Before opening, Mac Tools grants franchisees a limited license to use trademarks, provides initial training and materials, assigns a route with a minimum of 325 potential customers, sells products, and provides a Field Operations Manual. Mac Tools also offers a limited warranty on manufactured products and indemnifies franchisees against liability from manufacturing or design defects in manufactured products. After opening, Mac Tools continues to sell products, accepts product returns, notifies franchisees of minimum product purchase requirements, advises on route changes, and cooperates in resolving customer complaints. Mac Tools provides ongoing product warranties and indemnifies for manufactured product liability. Although not obligated, Mac Tools offers advice and consultation for operating the business and is involved in developing new products. Franchisees must use Mac Tools-designated software for inventory and business functions, and Mac Tools provides updates and upgrades for this software.
Initial Training Hours
240
Training Location
Dublin, Ohio or the Columbus, Ohio metropolitan area
Ongoing Support
After opening, Mac Tools provides ongoing support by continuing to sell products and accepting returns. Mac Tools notifies franchisees of minimum product purchase requirements, advises on route changes, and helps resolve customer complaints. Mac Tools also offers a limited warranty on manufactured products and indemnifies against product liability for manufacturing defects. Although not an obligation, Mac Tools offers advice and consultation for operating the business. Franchisees must use Mac Tools' designated business software, and Mac Tools provides necessary updates or upgrades for it. Mac Tools may offer optional supplemental training courses and mandatory supplemental training programs at designated locations. Franchisees also receive on-line training periodically.
Franchise Requirements
Ideal Candidate Profile
Mac Tools seeks individuals who are professional, possess good moral character, a professional reputation, and a good credit rating. Ideal candidates should have the aptitude and ability to conduct the Mac Tools Business, potentially evidenced by prior related business experience, and have adequate financial resources. Franchisees are expected to actively participate and dedicate their full working time and resources to the business, personally operating their assigned route if they have only one, or actively overseeing employees for multiple routes. They must maintain a valid driver's license and a clean driving record, and act in a professional manner at all times.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Each Mac Tools franchisee is assigned a Route consisting of a list of stops. Each Route is guaranteed to have a minimum of 325 potential customers. These customers are primarily professional mechanics and commercial users of tools and shop equipment located at various automotive and non-automotive businesses.
Staffing Notes
Mac Tools requires franchisees to ensure their employees who operate routes are fully trained in company policies and procedures. For each route, Mac Tools will train up to two franchisee employees. Any employee operating a route must possess a valid driver's license with a clean driving record and must not have certain felony convictions or pleas of nolo contendere related to crimes of moral turpitude, financial dishonesty, assault, or driving under the influence. Franchisees are responsible for certifying that their employees meet these criteria and have not engaged in behavior damaging to the MAC Tools® name. Franchisees are solely responsible for all aspects of employee management, including hiring, control, payroll, and providing approved Mac Tools trucks. Employees must conduct themselves professionally and not be under the influence of alcohol or illegal drugs while operating the business.