Matco Tools Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$108,079.5 - $382,766
Franchise Fee
$7,000
Min Cash Required
$5,000
Total US Locations
1,829
Business Summary
Matco Tools Corporation operates as a manufacturer and distributor of professional-quality mechanics' tools and service equipment. Matco Tools franchisees, known as mobile distributors, purchase these products, resell them, and provide service to professional mechanics, technicians, and other service professionals directly from their mobile stores.
Corporate History
Matco Tools Corporation was incorporated in Delaware in 1993. Its history traces back to Mac Allied Tools Corporation, founded in Ohio in 1946, which later became Matco Tools Corporation in 1978. The company underwent several ownership changes, including being acquired by Chicago Pneumatic Tool Company, merging into The Jacobs Manufacturing Company, and eventually becoming part of Danaher Corporation. In 1993, a new entity, NMTC, Inc., acquired the assets of the then-Matco Tools Corporation, and later changed its name to the current Matco Tools Corporation. The company has been part of Vontier Corporation since a spin-off in 2020. Matco Tools' predecessor began offering distributorships in 1979, and the current Matco Tools Corporation has offered franchised distributorships since 1993. Matco Tools manufactures toolboxes, distributes professional tools, and sells independent mobile distributorships. It also sells products through commercial sales and export distributors.
Financial Overview
Investment Range
$108,079.5 - $382,766
Franchise Fee (Low)
$7,000
Franchise Fee (High)
$10,000
Minimum Cash Required
$5,000
Equipment Costs (Low)
$7,800
Equipment Costs (High)
$215,833
Working Capital
$9,250
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements provided for Matco Tools Corporation are consolidated within its ultimate parent company, Vontier Corporation, which guarantees Matco Tools' obligations. Vontier Corporation operates as a global industrial technology company, with Matco Tools being part of its Repair Solutions segment. Vontier Corporation has received an unqualified audit opinion on its consolidated financial statements for the years ended December 31, 2024, 2023, and 2022, indicating that the financial statements present fairly, in all material respects, the company's financial position and results. The company had financing receivables and an associated allowance for credit losses of $352.2 million and $38.2 million, respectively, as of December 31, 2024. No impairment charges for goodwill or other intangible assets were recorded in the last three years. Vontier Corporation is in compliance with its debt covenants, managing substantial term loans and senior unsecured notes. While there is an underfunded status in its defined benefit pension plans, it is not presented as a 'going concern' issue. Overall, Vontier Corporation, and by extension Matco Tools, appears to be in a stable financial position.
Financing Details
Matco Tools Corporation provides several financing programs to its qualified distributors. This includes a Standard Initial Financing Program that can cover the initial inventory and franchise fee, ranging from $90,000 to $102,000, with interest rates from 11.5% to 13.5% over up to 120 months. For distributors with limited start-up capital or credit history, Matco Tools may offer Special Supplemental Financing of up to $33,000 for initial costs like a truck down payment, computer hardware, and initial operating funds, with interest rates up to 18% over a similar term. Matco Tools also provides ongoing financing for inventory purchases through an Open Purchase Account, which accrues 18% annual interest on overdue balances upon agreement termination. A Time Payment Line of Credit, up to $22,000 or $28,000, is available for the first year of operation to help fund credit sales to customers, with interest at Prime Rate plus 5%. Additionally, renewing distributors may access the Mobile Store Upgrade Financing Program for $5,000 to $20,000 at a fixed 6.99% interest rate over 1-5 years. All Matco Tools financing programs generally require a personal guaranty and a security interest in the distributor's inventory and receivables. Matco Tools also offers customer installment financing programs (Purchase Security Agreements) where it finances customer purchases and accepts assignment of these contracts, including options for varying recourse levels to the distributor.
Performance Metrics
Total US Locations
1,829
Franchised Units
1,811
Corporate Units
18
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
17
Litigation Summary
Matco Tools Corporation has disclosed 17 litigation cases. Two of these cases are currently pending as of March 6, 2025. In one pending class action filed in 2023, customers of Matco Tools distributors are alleging that Matco Tools was negligent regarding a data security incident and violated consumer protection laws by failing to protect their personal information. In another pending case refiled in 2024, an automotive repair shop claims Matco Tools breached its contract and violated consumer protection laws related to financing for tools purchased from a Matco Tools distributor. In the past 10 years, Matco Tools has been involved in several concluded cases. This includes disputes with former Matco Tools distributors who claimed to be employees and alleged violations of minimum wage laws and deceptive trade practices, all of which were settled, with Matco Tools sometimes paying sums and/or forgiving debt. A notable class action in California, initiated in 2019 by a franchised distributor, settled in 2022 with Matco Tools paying over $13 million in cash and forgiving over $2 million in debt to class members. Matco Tools also settled a 2024 class action with a customer regarding debt collection practices for $5,000. Additionally, Matco Tools has successfully pursued collection actions against former distributors for unpaid debts and has enforced post-term covenants. Some of these collection cases in 2024 and 2025 resulted in awards or settlements in favor of Matco Tools. The company has also won judgments in cases against distributors for breach of contract and trademark infringement.
Bankruptcy History
Matco Tools Corporation has no bankruptcy history to report for itself or its executives.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Matco Tools franchisees must provide written notice between 180 days and one year before their current agreement expires. They must satisfy all material requirements of their current Distributorship Agreement, including timely payment of all amounts owed to Matco Tools. Franchisees are also required to modernize their Matco Tools Mobile Store and equipment to meet current brand standards, sign a new Distributorship Agreement (which may have different terms), and pay a Successor Distributorship Fee. Finally, franchisees must sign a joint and mutual general release of all claims with Matco Tools.
Training & Support Program
Franchisor Assistance
Matco Tools Corporation provides extensive support to its distributors. Before opening, Matco Tools assigns a List of Calls, which defines the distributor's territory. Franchisees receive an operating Manual and participate in a mandatory initial classroom training program (MBST Program) for at least 50 hours at Matco Tools' corporate offices in Stow, Ohio, or other designated locations. This training covers the business system, customer service standards, and operational aspects including sales, marketing, and computer operations. Matco Tools also specifies requirements for the Mobile Store vehicle, branded attire, computer hardware and proprietary MDBS software, and the initial inventory of products. After opening, Matco Tools continues to provide assistance through a designated trainer who offers a minimum of 160 hours of initial field training over a six-week period, covering sales techniques, customer relations, and product knowledge. Optional additional training, product updates, and business seminars are also offered. Matco Tools conducts national and regional advertising campaigns and provides marketing materials such as catalogs and promotional literature, some at no cost. Matco Tools can also implement direct mail marketing programs at the distributor's expense upon request and offers promotional giveaway programs. Distributors benefit from end-user financing programs for their qualified customers and receive support for warranty and non-warranty service activities, including instructions and kits for in-field repairs of items like ratchets and toolboxes (though distributors are not compensated for their time on these repairs). Matco Tools ensures weekly shipments of products and organizes periodic meetings for further training, product updates, and idea exchanges. Comprehensive computer software support for the MDBS system is available Monday through Friday from 7:00 a.m. to 11:00 p.m. Eastern Time, and Matco Tools maintains a policy for returning eligible products for credit.
Initial Training Hours
210
Training Location
Corporate offices in Stow, Ohio, or other designated locations; some training is virtual or on-the-truck.
Ongoing Support
Matco Tools Corporation provides extensive ongoing support once a distributorship is operational. This includes a minimum of 160 hours of initial field training with a designated trainer over a six-week period, covering various sales and operational topics. Matco Tools offers optional additional training, product updates, and business seminars. The company conducts national and regional advertising campaigns and provides distributors with catalogs, promotional literature, and other sales materials, some at no cost. Matco Tools can also implement direct mail marketing programs at the distributor's expense upon request and offers promotional giveaway programs. Distributors benefit from end-user financing programs for their qualified customers and receive support for warranty and non-warranty service activities, including instructions and kits for in-field repairs of items like ratchets and toolboxes (though distributors are not compensated for their time on these repairs). Matco Tools ensures weekly shipments of products and organizes periodic meetings for further training, product updates, and idea exchanges. Comprehensive computer software support for the MDBS system is available Monday through Friday from 7:00 a.m. to 11:00 p.m. Eastern Time, and Matco Tools maintains a policy for returning eligible products for credit.
Franchise Requirements
Ideal Candidate Profile
Matco Tools Corporation seeks Principal Owners who will be actively involved, full-time, in managing all aspects of their mobile distributorship. Ideal candidates must demonstrate strong business management, sales, and financial management skills, including extending credit, budgeting, managing inventory, and collecting payments. Matco Tools values a proactive and diligent approach, encouraging potential owners to thoroughly research their proposed sales route. Prior experience as a mobile tool distributor is considered a significant asset. Franchisees must be committed to maintaining a high standard of customer service, building one-on-one relationships with professional mechanics and technicians. Additionally, candidates must pass a detailed criminal background check and be able to comply with Matco Tools' comprehensive training and operational standards. If hiring an Operator, that individual must also meet Matco Tools' educational, managerial, and operational experience standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Matco Tools Corporation defines territories by a 'List of Calls,' which identifies business locations and a maximum of 325 potential customers within a proposed route. For '225 Distributorships,' the List of Calls has fewer than 325 potential customers (up to 240). For 'Enhanced Territory Distributorships (ETDs),' the List of Calls has more than 350 potential customers. The number of potential customers determines the size of the territory.
Staffing Notes
Matco Tools Corporation requires the daily operations of a Matco Tools distributorship to be managed full-time by one designated 'Principal Owner,' who must hold at least 51% equity in the distributorship entity. The Principal Owner is responsible for all communications with Matco Tools, contractual agreements, and completing all mandatory training. Franchisees can designate an additional owner as a 'Business Partner' to assist the Principal Owner. Franchisees may also hire 'Operators' as additional employees to run the Mobile Store, but if participating in Matco Tools' financing programs, consent from Matco Tools is required. Operators must meet Matco Tools' educational, managerial, and operational experience standards; individuals previously terminated by Matco Tools are not eligible. Franchisees retain sole responsibility for all employment decisions, including hiring, compensation, and supervision of all staff. Matco Tools recommends that all employees who operate the distributorship receive training in its business system and standards to ensure consistent customer service.