How Much Does It Cost To Own a Snap On Franchise? 📲
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- เผยแพร่เมื่อ 2 มิ.ย. 2024
- Snap-On Tools Company offers a license to operate a franchised mobile store selling high-quality repair and diagnostic tools and equipment. The company focuses on manufacturing and distributing tools and equipment to professional mechanics and other tool users around the United States.
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00:00 Introduction
01:00 Locations
01:16 License Fee
01:40 Initial Investment
02:15 Time to Recoup Investment
03:08 Sales
03:29 Failure Rate Breakdown
04:29 Conclusion
#SnapOnFranchiseCostAndFailureRate #SnapOnFranchise #VettedBiz
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Snap On Franchise was established in 1980s before that dealers were Independent tool dealers that had large customer base. Some dealers has
from 400 to 1000 customers. Snap On Tools went to Franchise Business after they were taken to Count by their own dealers. Check these
Court Cases out before becoming a Snap On Dealers. Also, actually take time to the previous Snap On Dealer to ask them why they "closed" their
business. I think you will find alot of "closed" did not quit because they made too much money!!! Snap On Franchisor is the "Real Boss" , ask any Lawyer to read the Franchase Agreement and get his opinion about it.
Thanks for sharing! Were you a franchisee?
You need to do more research on what you report on. Life rule number 3 states "Talk about what you know about".
Planning to update our analysis based on numerous franchisees and former corporate employees reaching out. Would love your feedback for our next video.
Cornwell Quality Tools is older. They where founded in 1919 by Eugene Cornwell. They don't have franchise fees. Cornwell is the best mobile tool franchise to start.
Thanks for your comment! Besides being older and not having franchise fees, any other reasons the Cornwell model is better?
@@Vettedbiz yes, Cornwell dealers are the only people Cornwell sells to. There on zero phone or online sales to end user customers. All sales go through a dealer. They all so have some of the most experienced management force to help the dealers.
With Cornwell you only have to pay for your truck and tools. There is no franchise fee
Thanks for the insights
They aren't locations, the franchises are mobile trucks.
Thanks! We've changed the title.
If you are going to "vett" companies then you need to do more than just read their own media packets. SNA might only post a small decline in total dealers but their actual failure rate is VERY high, they are just very good at reselling those routes. On top of that most of SNA's income comes from large corporate contracts, large shop equipment and services. Routes, not trucks per say, make up a smaller portion of their overall business. Also SNA has a hard road ahead as tool truck alternatives such as GearWrench, Tekton, Harbor Freight and online sales are taking a bigger and bigger piece of the pie.
You're right! The video is based off of the 300+ page FDD rather than the media pack but we could have dug deeper into the numbers.
The percentage of Snap On units transferred to new franchisees and reacquired by franchisor was 11% over the last year and 31% over the prior 3 years!
The Industry median for the prior 3 years is 6% and all franchises is 6% as well.
While they are not 'failing' there is a high degree of churn.
I really appreciate your comment
@@Vettedbiz I'd also recommend anyone interested look into the multiple lawsuits and class actions filed against SNA by their own dealers. I cover tools and the tool truck markets and in my opinion, there is little to be gained by signing up with any of the top 4 tools trucks (Snap-On, MAC, Matco, and Cornwell) and would advise anyone interested to look at starting an independent mobile truck operation.
@@denoftools great insights!!
@@denoftools a good dealer from any of the big names will shit on any independent. The independent has no backing. To just drive around and sell the same shit thats on amazon would be quite the challenge. How are you going to walk into a shop and be like hey i have this gearwrench set for $250..the customer goes online and finds it for $80. Or even the customer you have a balance with goes to another area that you dont cover and hes a cash only guy? You write off or drive 30 mins 1 way across town to collect the $50 payment? Cool you cashflowed $50 that hour. At least in the big companies, you can transfer the balance to a neighbor dealer. Being an independent dealer would be an absolute nightmare imo.
@@anthonydamico5830 You do know that not only does Gearwrench have their own trucks but they will also wholesale right? Independents are not just ordering off of Amazon they are ordering direct or through wholesale channels. And this is not just pie in the sky dreaming there are independent trucks right now who are killing it. SNA is dying at the truck level because they can't compete and they screw their dealers with very limited routes that are not expandable for the most part. The only reason SNA has shown a profit in the past decade is due to large corporate accounts and massive government contracts as well as "shop tools". Those are not tools per saw but shop infrastructure. SNA treats most of their dealers like indentured servants. Just look at the millions SNA has paid out to former dealers.
I would rather a bread route or snack route. Less work and you get what you pay for. I had a pepp cookie route before cvoid and made 110k a year working 30 hours a week. But after loan payment its about 70k to 75ka year. That size cookie route goes for about 500k now with 10% down payment so you get the major benefit after loan is paid off in 10 years. I was happy making 70k to 75k a year working 30 or less hours a week. After 10 year loan paid you making 110k to 130k because new builds and new stores. Less headach
Thanks for sharing your story especially the financials.
Wait your only getting 10% with a $200K investment that’s probably going to fail with any hiccups
You are wafting.
Way overpriced, i know i bought for many years as an apprentice,as a young/ kid i was impressed by the choice and range of tools ,its like everything else in life life,the Chinese produce has changed,,pretty tools at a tenth of the price and they do the job,paying 10 times plus more doesn't make yo
U a better mechanic .
Cornwell 1919
You have to be insane to take this on.
To invest in Snap-on?
Someone found out how catty tool guys are😂