Franchising is a great way to get into business. It allows you to start your own business with the backing of an established company. This world is filled with many opportunities, and the tool industry is blooming, calling for more innovative ways of doing things. The best tool franchises offer a comprehensive suite of services and products and a proven track record of success. Suppose you want to know more about tool truck franchises, here are 5 of the best available tool franchises, their cost, and what you need to get started.
1. Cornwell Quality Tools
This is a tool franchise that has been in operation for over 25 years. The company has a proven track record of success and offers a comprehensive suite of services and products. This company has since grown to 756 units as of 2021, a 9.7% increase over the last three years.
Cornwell Quality Tools also offers veteran incentives in interest-free financing on initial inventory purchases. The term of the franchise agreement is unlimited and is not renewable. One thing that makes this franchise unique is that it does not require a royalty fee, making it an attractive option for those looking to get into the tool industry.
Initial Investment: $59,525 – $272,825
Initial Franchise Fee: $0
Cash Requirement: $10,000
2. Ace Hardware
This company was founded in 1924 and has been franchising since 1976, making it one of the longest-running franchise businesses. With more than 5,500 units as of 2021, it is also one of the largest hardware store chains in the world. Ace Hardware is unique because it is cooperative, meaning that each store is independently owned and operated. This gives franchisees a lot of flexibility and autonomy in running their businesses.
Ace Hardware offers a discount to veterans who want to franchise with the company. The franchise fee (also known as the affiliation fee) is waived for veterans. There is no set term for the Ace Hardware franchise agreement, so it is not renewable. However, this does not mean that franchisees can operate their businesses indefinitely. Either party can terminate the deal with a cause.
Ace Hardware has been ranked as the top hardware store chain in terms of customer satisfaction for both online and offline shopping experiences. In addition, Ace Hardware is the 13th fastest-growing retailer in the United States.
Initial Investment: $292,000 – $2,119,230
Initial Franchise Fee: $5,000
Cash Requirement: $250,000
Net Worth Requirement: $400,000
Matco Tools is our next best tool franchise opportunity on the list, with a 5.7% growth rate over the last three years and 1,895 units as of 2021. The company was founded in 1979 and has been franchising since 1993. The parent company is Vontier, and Timothy Gilmore is the current president.
A few things make Matco Tools stand out among the other franchises on this list. First, the company offers veteran incentives in the form of $10,000 off the initial inventory purchase. Additionally, the franchise agreement is only for ten years, with the option to renew afterward. This is shorter than most of the other agreements we’ve seen.
Matco Tools provides in-house finance to cover franchise fees, startup expenditures, inventory, equipment, payroll and accounts receivable. The company also has relationships with third-party sources that offer finance to cover equipment.
Initial Investment: $76,634 – $275,540
Initial Franchise Fee: $5,600 – $8,000
Cash Requirement: $5,000 – $13,500
Net Worth Requirement: $25,000
4. Snap-on Tools
Next is Snap-on Tools, founded in 1920 and franchising since 1991. From this time, the company has set up 4,769 units as of 2021. Even though the franchise experienced a 1.3% decrease over three years, the company has been doing quite well. The current president and CEO of the company is Nick Pinchuk.
When you franchise with Snap-on Tools, you get a license to operate a mobile store that sells high-quality repair and diagnostic tools. As a franchisee, you will have your own business with a protected list of customers to sell to.
These locations are not assigned to any other Snap-on Tools franchisee, so it is your responsibility to manage the route. You will be in charge of your franchise, setting your schedule, and managing customer relationships. Snap-on offers you the resources and training needed to do your best work.
Initial Franchise Fee: $8,000 – $16,000
Initial Investment: $169,223 – $382,235
Net Worth Requirement: $37,583 – $55,545
Cash Requirement: $37,583 – $55,545
5. Mac Tools
This is one of the most well-known tool brands in the world. They’ve been in business since 1938 and have over 1,000 units currently active. Their growth, however, has been a little lackluster as of late, with a 2.9% decline in units over the past three years.
Still, if you’re looking for a tool franchise with instant name recognition, Mac Tools is worth considering. Their initial investment ranges from $151,125 to $295,740, and you’ll need a net worth of $40,000 to qualify. They offer a nice veteran incentive in the form of a $25,000 startup credit.
Initial Investment: $151,125 – $295,740
Initial Franchise Fee: $8,000
Net Worth Requirement: $40,000
Cash Requirement: $20,000 – $30,000
So there you have it, our list of the five best tool franchise opportunities available today. We hope this has given you some food for thought and helped you narrow down your options. Best of luck!