In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Mac Tools franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Mac Tools franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Mac Tools’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- number and percentage of Mac Tools franchisees that purchased products from Mac Tools during fiscal year 2015 in the amounts noted in the table (from $0 to $49,999.99 on the low end to greater than $600,000 on the high end; and in increments of $25,000 in between)
Section I – Background Information
Mac Tools Exceeds Growth Expectation
Mac Tools held its 2016 Mac Tools Tool Fair Feb. 11-13 at The Mirage in Las Vegas, with a record-high attendance of more than 2,000 attendees, including franchisees and guests. With a theme of “Rev It Up,” the three-day event focused on new products and sales opportunities, honored top distributors, and shared company highlights.
Mac Tools President Brett Shaw said the company exceeded growth expectations set a year earlier, with 5 percent growth in franchisee numbers. For 2016, he said, the company’s goal is to have a balanced focus of supporting existing franchisees while recruiting new franchisees.
Greater investment in technology is helping the company be more connected and productive, Shaw said.
Products, Toolbox Trucks Introduced at Tool Fair
Among the products Mac Tools unveiled at its tool fair were a deeper 30-inch toolbox, NASCAR-themed team boxes in a limited run, and a motion-activated light for illumination of storage space.
Also introduced was the company’s Toolbox Trucks program, which involves separate truck routes with trucks featuring only tool storage. These trucks are meant to assist franchisees with sales of toolboxes for current customers.
New Line of Grinders Launched
In March 2016, Mac Tools unveiled a line of pneumatic die grinders. The six different units have power options for both 0.3 and 0.5 horsepower motors. The grinders feature tool-free power adjustment to ensure technicians can quickly adjust speed for a variety of applications. Precision control is gained from a newly designed throttle with lockout.
Small Beginnings, Big Growth
Mac Tools dates back to 1938, when seven men got together to form the Mechanics Tools and Forge Company in Sabina, Ohio. President Ralph McPherson and Secretary Otto Tucker, elected to their offices, scraped together $5,000 to arrange for a building and purchased used machinery to begin production.
The company, which prospered under a government contract in 1942 and continued steady growth, officially became Mac Tools in 1963.
Stanley Works purchased Mac Tools in 1980. Mac Tools is now part of a group of Stanley Works brands that also includes Stanley Tools, Facom, Proto, and Blackhawk, which is a subsidiary of Proto Tools. The company began franchising in 2011.
More Than 42,000 Items
Now based in Westerville, Ohio, and a division of Stanley Black & Decker Inc., Mac Tools makes more than 42,000 items, including professional tools, specialty items, tool boxes, power tools, electronic and shop equipment.
Mac Tools franchisees run mobile tool stores in Mac Tools trucks and go on their routes carrying inventories of popular tools.
The Mac Tools goal is to be the brand of choice for the automotive repair industry, and it aims to get there through high quality products, innovative solutions and quality service to technicians through Mac Tools distributors. The company strives to be “Great to Work With.”
Company Reaches Its Highest Spot in Franchise 500
Mac Tools was No. 72 on Entrepreneur’s Franchise 500 list for 2016, its best showing yet. Entrepreneur noted 21 percent growth over three years, with 171 units added in that time, and one-year growth of 7.4 percent, with 60 units added. Mac Tools achieved its highest spot ever on the list for 2016, just three years after posting its worst showing at No. 238. The company rose to 78 in 2014 and 77 in 2015.
Racing to Fight Breast Cancer
Mac Tools was in the pink in National Hot Rod Association racing in October 2015, National Breast Cancer Awareness Month. A new pink wrap was unveiled for the Mac Tools Top Fuel Dragster to help further awareness of the fight against breast cancer.
The pink dragster featured Wrenching for a Cure branding to highlight that product line, which raises awareness for breast cancer research and raises funds as a portion of the proceeds from those products are donated to the cause.
Top Fuel Driver Doug Kalitta and his crew sported breast cancer awareness shirts.
The pink dragster wrap was featured in Reading, Pennsylvania; Dallas, Texas; and Las Vegas, Nevada.
Section II – Estimated Costs
- Please click here for detailed estimates of Mac Tools franchise costs, based on Item 7 of the company’s 2016 FDD (updated).