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5 Best Tool Franchises [Cost, Fees]

Tools are important to humans and they are used for various purposes. A tool is an object used to extend the ability of an individual to modify features of the surrounding environment. Those that are in the business of selling tools, or repairing tools or manufacturing tools usually make good money from the business especially if they know how to reach out to their target market.

So, if you are interested in this booming industry, you can actually start your own tool related business via franchising. Franchising is not a business, but rather a way of doing business. It is a unique and highly effective method of distribution for all kinds of products, goods, and services.

It is also an industry that generates direct and indirect economic impact, over $2.3 trillion in annual sales. Franchised businesses demand products and services from other businesses and provide income to their workers and owners, who then spend their income and create still more income for other parties.

Franchising has become one of the most popular ways to grow a business in the United States. Having said that, if you choose to buy a tool business franchise, here are some of the best tool company franchises you can buy in the United States of America;

5 Best Tool Franchise Opportunities and Their Cost

  1. Mac Tools

Mac Tools is an American company that manufactures and markets professional tools and related equipment. It is headquartered in Westerville, Ohio, United States. The Mac Tools line consists of over 8,000 professional tools including screwdrivers, ratchets, wrenches, and assorted air tools. Mac Tools also produces its own line of tool storage and carts at its manufacturing plant located in Georgetown, Ohio.

Mac Tools manufactured tools are produced in various Stanley Black & Decker facilities across the world. Mac Tools USA hardline tools are manufactured in their partner Proto Dallas plant. Their primary distribution center is located in Hilliard, Ohio, USA. Mac Tools business model is a franchise system with roughly 1500 distributors across North America.

Financial Requirements

  • Initial investments: $106,026 – $259,255
  • Net-worth Requirement: $40,000
  • Liquid Cash Requirement: $8,000 – $22,000
  • Ongoing Initial Franchise Fee: $5,950 – $8,000
  1. Matco Tools, Inc.

Matco Tools, Inc. is an American professional tool distributor for the automotive and other industries and is based in Stow, Ohio, United States. This includes over 13,000 different tools such as wrenches, screw drivers, gauges, and specialty tools.

Matco produces their own line of high quality toolboxes in the USA at their Jamestown, NY manufacturing plant. They manufacture and contract the production of many air tools, electric tools, hand tools and diagnostic tools. They carry a lifetime warranty on all hand tools.

The company was founded in 1946 and began selling direct to professional mechanics in 1979. Matco Tools are sold by a local tool distributor who owns a territory by means of a franchise. The franchise owner drives to the work locations of potential customers, and typically offers financing to individuals looking to buy their tools.

Financial Requirements

  • Initial investments: $91,785 – $269,665
  • Net-worth Requirement: $25,000
  • Liquid Cash Requirement: $25,000
  • Ongoing Initial Franchise Fee: $7,000
  1. The Cornwell Quality Tools Company

The Cornwell Quality Tools Company manufactures and markets hand tools, tool storage products, power tools, specialty tools, automotive diagnostics, and shop equipment. The company was founded in 1919 and is based in Wadsworth, Ohio (667 Seville Rd. Wadsworth, OH 44281, USA).

Cornwell also provides franchise opportunities and offers its products through independent tool dealers. As of 2018, the company operates 689 franchises in the United States.

Financial Requirements

  • Initial Investment: $47,525 – $243,825
  • Liquid Cash Requirement $10,000
  1. Snap-on Incorporated

Snap-on Incorporated is a designer, manufacturer and marketer of high-end tools and equipment for professional use in the transportation industry including the automotive, heavy duty, equipment, marine, aviation, and railroad industries.

Snap-on also distributes lower-end tools under the brand name Blue-Point. Snap-on, Inc has more than 65,000+ SKUs in our product line, operates in more than 130 countries and employs approximately 12,600 people worldwide. Snap-on also has a franchise network of more than 4,200 franchisees.

Snap-on tools are sold only by dealers and not in retail stores. Snap-on has always maintained the philosophy that the customer’s time was too valuable to spend going shopping for tools. Snap-on franchisees visit their customers in their place of work once weekly, in a van loaded with items for purchase.

Financial Requirements

  • Initial investments: $171,385 – $359,767
  • Net-worth Requirement: $35,677 – $53,366
  • Liquid Cash Requirement: $35,677 – $53,366
  • Ongoing Initial Franchise Fee: $8,000 – $16,000
  • Ongoing Royalty Fee: $120/mo.
  1. K&N Mobile Franchises

K&N Mobile Franchises is one of the leading parts sales to machinery, tools, equipment & auto shops in the United States of America. K&N Mobile Franchises was founded in 1974 and they began franchising since 2008 and that is about 12 years ago.

K&N Mobile Franchises has her corporate head office at 4909 Rondo Dr. Ft. Worth, TX 76106 and under the leadership of Jerry L. Nelson who is the founder of the company. The company offers in-house financing to cover the following: inventory, and accounts receivable. K&N Mobile Franchises also have relationships with third-party sources which offer financing to cover only equipment

Financial Requirements

  • Initial Investment: $56,755 – $170,750
  • Net-worth Requirement: $100,000
  • Liquid Cash Requirement: $50,000
  • Ongoing Initial Franchise Fee: $28,500 – $28,500
  • Ongoing Royalty Fee: 9%
  • Ad Royalty Fee: 1%
  • Veteran Incentives: Royalty fee waived for 6 months