Like any other business, buying into a franchise requires starting capital and additional running costs to keep it profitable. On the other hand, starting a tool franchise business comes with its perks, including profitability, instant name recognition, and a guaranteed customer base. After the upfront investment in a tool franchise business, it usually generates a steady cash flow without you doing much except promoting it consistently. Here are five top tool franchise companies worth considering;
Cornwell Quality Tools
Cornwell Quality Tools is among the most prominent tools franchises in the United States and Canada, with more than 400 franchisees. Eugene Cornwell founded the company in 1919. Today, it employs more than 1,000 people and has more than 500 locations worldwide. Their tools are used by many different professionals in a variety of industries, including contractors, electricians, plumbers, HVAC technicians, general repair and maintenance workers, auto mechanics, woodworkers/carpenters, and mechanics who work on farm equipment such as tractors or combines (but not those who specialize in diesel engines).
The cost to get started in this tool business is 20,000 dollars. You should also have a net worth of 38 000 dollars. Investors can save money depending on whether they own a building or rent a space.
One of the most significant tool franchise companies in the United States of America is Mac Tools. Seven men started the company in 1938 to make and distribute quality tools. Today, it has more than 1,100 locations throughout the United States and Canada. Mac Tools franchisees can benefit from the company’s extensive product line, which includes everything from pneumatic tools to lubricants. Franchisees also benefit from a nationwide advertising campaign that promotes the products at trade shows and other events across the country.
You need at least 20,000 dollars in liquid assets to purchase a Mac Tools franchise. Franchisees can expect to invest between 109,000 and 250,000 dollars. Your franchise costs will be $8,000. In addition, there are financing options available through various lenders that offer both short-term and long-term loans at interest rates ranging from 2% to 6%, depending on your credit score or the amount of down payment these lenders require before approving your loan application (which can be as high as 100%).
Snap-on Tools is an automotive tools and accessories franchise company. They charge a $16,000 franchise fee, with the total initial outlay ranging from 171,000 to 359,000 dollars. Also, expect to pay a $120 monthly royalty fee.
Snap-on Tools have more than 595 stores in 28 countries worldwide and about $4 billion in annual sales. You can also count on them for training and community support from other franchisees within your locale who can help address any concerns that you may have.
Matco Tools is a tool and equipment dealer offering tool kits, diagnostic equipment, and repair information. Founded in 1946, Matco has provided automotive tools and merchandise directly to qualified technicians, hobbyists, and people who value excellent automotive equipment through a community of independent franchised mobile tool dealers since 1979.
With an initial investment ranging from $36,515 to $78,835 depending on location, this franchise opportunity can be lucrative for those willing to do the hard work required for success. Costs include a $9,995 franchise fee and 6% royalties on gross sales (after discounts).
The Toolwarehouse Network
The Toolwarehouse Network is another established franchise that offers everything from power tools to landscaping supplies. This franchise has been around since 1994 and has grown steadily over the years. The company has a network of more than 200 locations in Canada, the United States, Australia, and New Zealand.
Starting a Toolwarehouse franchise ranges from $5,000 to $40,000, depending on how much you want to invest (the higher amount is for a business that sells lawn and garden equipment). For general startup costs, you will need at least $50,000. It encompasses cash reserves, inventory, and fees for opening your business account at a bank or credit union.
While there is a wealth of information on various franchises and their costs, it can still be challenging to find a good source that works for you. If you know all the necessary facts, it should be easy for you to decide whether or not a tool franchise is right for you. If you are looking to purchase one of these franchises, you should hire an experienced business broker to make sure you get the best deal possible for your new business opportunity.