The auto repair industry employs nearly 550,000 people, representing many professionals who need the right tools for their jobs. A tools distribution business makes it easier for mechanics and motoring enthusiasts to access equipment and specialized tools. And one way to make headway in the industry is through a franchising opportunity. To that end, or if you’re hunting for a good franchise tool company, here are four of the best options for 2022:
1. Snap-on Tools
Snap-on offers high-quality tools for both experts and part-time DIYers. With its mobile showroom that delivers goods to any house or business address, this unique franchise provides 19,000 distinct and premium-grade tools.
Franchisees also receive a special package that gives them a foothold in the market. This includes a van, a website, and access to an intranet system with information about tools and their prices.
Since it was established in 1920, Snap-on Tools has been a trusted name in the automotive industry. It designs, manufactures, and markets a wide range of professional-grade tools, including sockets, wrenches, ratchets, and drivers. The firm has been franchising since 1991 and boasts 4,800 franchises operating globally. Out of these, 192 are company-owned. Expect to make a total investment ranging from $170,000 to $380,000 if you’re eyeing a Snap-on franchise.
In terms of profitability, a Snap-on franchise outlet averages between $480,000 and $570,000 annually. This clearly indicates the establishment is a top performer in the industry. Average annual sales per unit are about $952,000 or roughly 51% of gross profit.
2. Cornwell Quality Tools
Cornwell Quality Tools is a household name across the US. The firm has carved out a name for itself by developing hand tools that outlast the competition. The company’s faith in its products is corroborated by a lifetime guarantee on all of them.
Primarily, Cornwell sells its tools through franchisees who drive branded trucks in their designated territories- the preferred model by franchisors in our list. This allows customers to have a personal relationship with a Cornwell representative in their area and gives franchisees a sense of ownership in the company. Prospective franchisees can “ride along” with an established franchise to have a feel for the business model and what a typical day involves.
Despite being founded in 1919, Cornwell only started franchising in 1997. As of 2022, the company has 690+ franchise units. Cornwell doesn’t require you to pay an upfront franchise fee, meaning you only have to overcome a few barriers to entry. If you opt for a Cornwell franchise, your total investment would be roughly $114,525 – $272,825. Other requirements include:
- A minimum net worth of $40,000
- Liquid cash requirement of $10,000
3. Matco Tools
Matco has been in operation since 1979 and started franchising in 1993. The firm currently has 1,895 units, of which 74 are in international markets. Matco sells premium tools and storage equipment to mechanics and DIY enthusiasts.
Prospective buyers get to choose from up to 13,000 products. The total investment in a Matco franchise is between $78,000 and $274,000, which is significantly lower than the cost of a Snap-on franchise.
But, you need related or relevant experience to qualify for a Matco franchise- including industry experience, knowledge acquired in business, or by attending a reputable marketing school. Unlike a Snap-on franchise that requires you to pay $125 monthly as an ongoing royalty, a Matco franchise doesn’t require such a commitment. The standard licensing agreement between a franchisee and the Matco franchisor is ten years (as with a Snap-on franchisee).
4. Mac Tools
Mac Tools has decades of experience in the tools distribution business, having been founded in 1938. The company was also a late entrant into franchising as it started in 2011. Like other franchise models in our lineup, Mac tools use branded trucks for marketing its product line- consisting of over 8,000 tools- to the experts who need them.
As of 2022, the company has 1100+ units- an exponential growth rate over a decade or so. Of these franchises, only one is company-owned, with about a third located outside the US. Here’s a quick breakdown of the financial requirements for a Mac Tools franchise:
- Initial investment: $106,000 – $260,000
- Net-worth Requirement: $40,000
- Liquid Cash requirement: $8,000 – $22,000
- Upfront franchise fee: $5,900 – $8,000
If you’re contemplating starting a franchise with any of these companies or in this industry, it would be prudent to contact particular firms directly. Then, compare the options you have on the table to find the suitable route before making a long-term commitment. Plus, verify fees or investments with the business you’re interested in before getting your feet wet by investing.