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FDD Talk 2015: The Matco Tools Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on July 3, 2015

in FDD Talk 2017: Miscellaneous Franchises, Franchise Earnings, Mobile Tool Franchise

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Matco Tools Truck Photo by So Cal Metro

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Matco Tools franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Matco Tools franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Matco Tools’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 Average Total Completed Business for the top third, middle third, and bottom third of the 1,196 Matco Distributors in the United States that were in business for all of 2014, and that reported sales for at least 48 weeks during 2014
  • 2014 National Distributor Sales Average for the 1,196 Matco Distributors in the United States who (i) were in business at the beginning of 2014, (ii) were operating at the end of 2014, and (iii) reported sales close-outs at least 48 weeks during 2014

Section I – Background Information

Based in Stow, Ohio, Matco Tools got its start back in 1946, but it wasn’t until 1979 that it began selling its tools directly to professional mechanics and others through independently franchised mobile distributors.

Geared mainly towards the automotive industry, Matco’s line includes more than 13,000 different tools from wrenches, screwdrivers, and gauges to specialty diagnostic tools and the customized toolboxes to put them in.

Everything in the Matco line can also be purchased from the company’s online store. The company guarantees and services everything they sell.

Matco Tools is a subsidiary of the Danaher Corporation, a Fortune 500 player in such industries as tools, environmental and industrial processes, and control markets. The company currently operates in all 50 states, Canada, and Puerto Rico.

Franchisees purchase distribution routes made up of hundreds of potential customers that route owners service via white trucks bearing the Matco logo.

While there are many satisfied Matco Tools franchisees, the company has significant image challenges to overcome due to dissatisfied franchisees speaking out online.

Section II – Estimated Costs

  • Please click here for detailed estimates of Matco Tools franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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