About Matco Tools Franchise
Matco Tools is a professional tool distribution franchise that has been franchising since 1993, backed by Vontier Corporation.
The brand operates a mobile tool distribution model where franchise owners drive fully stocked tool trucks to auto repair shops, dealerships, and mechanics, selling professional grade hand tools, power tools, diagnostics equipment, and toolboxes directly to technicians.
The franchise fee is $8,000.
Matco Tools Franchise Cost & Fees
Minimum Investment
$77K
Average Investment
$195K
Maximum Investment
$314K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $8,000 | One-time payment upon signing |
| Royalty Fee | 0% of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None | National brand fund |
| Total Investment Range | $77,236 – $313,646 | Includes build-out, inventory, working capital |
The investment range of $77K–$314K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (0%) and marketing fee (None) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $8,000 | $8,000 |
| Initial Inventory | $50,000 | $84,000 |
| Acquisition and Establishment of Time Payment Reserve Accounts | $22,000 | $22,000 |
| Or Time Payment Line of Credit | $4,700 | $9,325 |
| Mobile Store – 1 1/2 months’ lease payments | $2,804 | $163,584 |
| Computer Hardware | $2,900 | $3,600 |
| Computer Software and Internet Service – three months’ payments | $2,050 | $2,825 |
| Insurance – three months’ premiums | $768 | $3,118 |
| Travel, Lodging and Meal Expenses | $179 | $2,767 |
| Professional Services | $310 | $5,852 |
| Fixtures, Supplies, Licenses | $525 | $4,400 |
| Additional Funds – three months | $5,000 | $13,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of Matco’s then-current Initial Franchise Fee |
| Renewal Fee | 50% of Matco’s then-current Initial Franchise Fee |
| Technology Fee | Computer Maintenance and Support Charge: $645 or $1,045 annually; License Fee for Credit Card Processing Software: $225 annually; License Fee for Signature Pad Processing Software: $45 annually |
| Minimum Inventory Purchases | Maintain an inventory of Products; and maintain a ratio of purchase average to total sales of at least 60%. |
| Additional Training Fee (for Business Partner) | $295 |
| Field Training for Additional or Replacement Employees and Operators | $1,500 per week |
| Web Page Maintenance Fee | $195 Annually |
| Insurance | $256 to $1,039 Monthly |
| Late Fee on Open Purchase Account | 5% of amount due, per week; maximum $100 |
| Inventory Returns, Restocking Fee | 15% restocking fee (35% in limited circumstances) |
| Repair Kits | $10 to $40 per kit (but, generally $10 per kit) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | minimum of 85 hours |
| Classroom Training | 85 hours |
| On-the-Job Training | 80 hours |
| Training Location | Matco’s corporate offices in Stow, Ohio, or at such other location as may be designated by Matco |
| Additional Training | Matco may offer additional training, product updates and business seminars. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | protected territory |
| Exclusive Territory | No |
| Territory Size | minimum of 325 Potential Customers |
| Description | The territory is defined by a “List of Calls” which identifies business locations where professional mechanics, technicians, and other service professionals operate and purchase tools and related products for their own use (“Potential Customers”). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10-year period |
| Renewal Fee | 50% of Matco’s then-current Initial Franchise Fee |
| Renewal Conditions | Distributor must give 180 days’ but not more than one year’s prior written notice; satisfy all material requirements of the current Distributorship Agreement; timely pay all monetary obligations owed to Matco; modernize the Matco Mobile Store and equipment; sign a new Distributorship Agreement (which may have different terms); and pay the Successor Distributorship Fee; and sign a joint and mutual general release. |
| Transfer Fee | 50% of Matco’s then-current Initial Franchise Fee |
| Transfer Conditions | Distributor must not be in default and pay all financial obligations to Matco; Distributor and Matco must sign a mutual general release; transferee and its principal owner must demonstrate ability to operate the Distributorship, have adequate financial resources, and not be competitive with Matco; transferee-distributor and its Principal Owner must execute the then-current Distributorship Agreement and complete the Matco Business System Training (MBST) Program; Distributor and transferee-distributor must sign necessary legal documents to transfer the Agreement; purchase and sale agreement must ensure uninterrupted operation of Mobile Store and Distributorship during transfer. |
| Termination for Cause | Matco has the right to terminate the Agreement for various reasons, including but not limited to: violation of any material term, provision, obligation, representation or warranty; failure to comply with Customer Service Standards; assignment for the benefit of creditors or bankruptcy proceedings; attempting to assign or transfer without consent; abandonment of the Distributorship; failure to make timely payments; refusal to perform physical inventory or permit audits; failure to comply with Section 10.5; Principal Owner convicted of or pleads guilty to a gross misdemeanor or felony; conduct materially impairing Matco’s goodwill, Business System, or Marks (e.g., fraudulent/deceptive actions); submission of fraudulent credit applications; selling products to customers not on the List of Calls; Principal Owner's disability preventing performance for six consecutive months or six months within 18 consecutive months; Principal Owner's death; repeated defaults; cancellation/termination/acceleration of promissory notes due to default; adjudication of the business model as illegal or unenforceable; or operating the mobile showroom while illegally impaired. |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term of the Agreement, the Distributor, Principal Owner, Operator, and any other owners or Guarantors must not engage in any direct or indirect competition with Matco, including manufacturing, selling, or distributing similar products, or selling to customers/potential customers of the Distributorship. For one year after termination or expiration, they must not sell or attempt to sell similar products to customers served in the previous 12 months or to persons/businesses on the List of Calls if sales calls were made to them in the previous 12 months. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The daily operations of the Distributorship must be conducted under the active full-time management of one “Principal Owner” who is designated on Exhibit P to the Distributorship Agreement. The Principal Owner must own at least a majority (51%) of the outstanding equity interests, be responsible for all communications with Matco, and have the right to contractually bind the Distributor. The Principal Owner must complete all required training programs and comply with Matco’s standards and requirements. Any other owners or persons whose assets are considered in financing must personally bind themselves to the obligations by signing a Guarantee, Indemnification, and Acknowledgment. |
| Required Suppliers | Currently, Matco is the only approved supplier of Products. |
| Supply Restrictions | You must not sell, offer for sale or distribute Products and other merchandise not purchased from Matco (or other designated suppliers) or approved by Matco or its affiliates except for items that are traded-in by your customers. |
| Franchisor Revenue from Suppliers | $1,765,457 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Matco offers several financing programs: Standard Initial Financing Program (initial inventory and franchise fee), Alternate Initial Financing Program (with Balloon Payment), Supplemental Financing 'A' (for start-up costs including mobile store, computer hardware, and additional funds), Supplemental Financing 'B' (similar to 'A' but for applicants with low net worth/credit history), Open Account Product Purchases (revolving line of credit for inventory), Time Payment Line of Credit (to fund Time Payment sales), Inventory Plus financing (additional loan for computer, MDBS fees, etc.), Bridge Loan Financing (for 401(k)/IRA rollover funds), and Mobile Store Upgrade Financing Program (for mobile store upgrades upon renewal). |
Matco Tools Franchise Earnings — Item 19
Average Revenue
$722K
Median Revenue
$671K
Sample Size
1527 units
Past financial performance does not guarantee future results. Individual results will vary.
Matco Tools Litigation & Risk Flags
Clean Litigation RecordMatco Tools has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Matco Tools System Growth
Total Units
1815
Franchised
1809
Company-Owned
6
Matco Tools currently operates 1809 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 218 | 208 | 1782 |
| 2021 | 262 | 189 | 1855 |
| 2022 | 235 | 275 | 1815 |
Transfers: 7 | Closures: 672
State Registrations
Registered in 19 states: CA, FL, HI, IL, IN, LA, ME, MD, MI, MN, NY, NC, ND, RI, SD, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$3184.4M
Net Income
$401.3M
Total Assets
$4343.3M
Audited by Ernst & Young LLP for year ending December 31.
Matco Tools Franchise — FAQ
The total investment to open a Matco Tools franchise ranges from $77,236 to $313,646, per their Franchise Disclosure Document. This includes the initial franchise fee of $8,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Matco Tools charges a royalty fee of 0% of gross sales, plus a None contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Matco Tools Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Matco Tools to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Matco Tools franchise owners report average revenue of $722K and median revenue of $671K. This is based on a sample of 1527 units. Past performance does not guarantee future results.
Matco Tools has been franchising since 1993. The FDD shows an investment range of $77,236-$313,646, a 0% royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $8,000 and the total investment ranges from $77,236 to $313,646 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Matco Tools and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Matco Tools or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com