Snap-on Tools
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Founded in 1920, Snap-on has over 90 years of experience in the tool industry. Today it has become a $2.6 billion S&P 500 Company that is universally recognized by professionals as providing the highest quality products in the industry. As the #1 professional tool brand in the world, Snap-on produces over 22,000 products and operates more than 4,200 locations in over 130 countries. Snap-on offers a variety of products, including hand tools, tool storage solutions, diagnostic equipment, information and management systems, and “under-car” shop implements such as hydraulic lifts and tire changers. Snap-on serves the auto, marine and aviation industries, as well as the government, utilities and industrial organizations.
Snap-on commands tremendous brand name recognition and an exemplary reputation within the industry. Snap-on is driven by a determination to provide the best quality, practical, original and innovative solutions to customers. In joining the Snap-on Tools team, franchisees enjoy this impeccable reputation, as well as benefit from selling the most demanded product in the market.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
3,035 |
2,992 |
3,015 |
| | % Change | -- |
-1.4% |
0.8% |
| | Company-Owned |
93 |
165 |
196 |
| | % Change | -- |
77.4% |
18.8% |
| Gateway |
227 |
220 |
181 |
| % Change | -- |
-3.1% |
-17.7% |
| | Total |
3,355 |
3,377 |
3,392 |
| | % Change | -- |
0.7% |
0.4% |
| | Franchised as % of Total |
90.5% |
88.6% |
88.9% |
Investment Required
The initial license fee for a Snap-on Tools Standard Franchise ranges from $7,500 - $15,000. In some instances, Snap-on offers a Gateway Franchise Program with a reduced required investment and a two-year term.
Snap-on provides the following range of investments required to open your initial standard franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Franchise Fee | $7,500 | $15,000 |
| | Initial Inventory | $72,000 | $76,000 |
| | Technology Package | $0 | $2,700 |
| |
Uniforms & Supplies | $0 |
$800 |
| | Accounting Service Set-Up | $0 | $220 |
| | New Franchisee Credit Marketing Program | $480 | $500 |
| |
Van & Van Delivery Charge |
$6,190 |
98,650 |
| | Van Insurance (3 months) | $250 | $1,250 |
| |
Van Merchandising Displays and Safety Equipment |
$1,600 |
$4,000 |
| | License |
$200 |
$2,400 |
| | Revolving Accounts Fees | $52,500 | $52,500 |
| | Other Equipment, Fixtures, & Expenses | $150 | $350 |
| | Computer Software License Fee | $770 | $770 |
| | Invoice Line of Credit Repayment | $0 | $20,000 |
| | Additional Funds (3 months) |
$8,974 |
$13,940 |
| |
Total Initial Investment |
$150,614 |
$289,080 |
Ongoing Expenses
Franchise owners operating a Standard Franchise pay a monthly license fee equal to $102 and a monthly computer software maintenance fee equal to $26.
What You Get—Training and Support
Snap-on is dedicated to providing franchisees considerable training and support. Prior to opening, Snap-on provides an initial inventory of products, uniforms and a technology package that includes a computer, applicable software, a printer and an electronic signature pad. Franchisees attend an initial training program that involves approximately 135 hours (45 hours/week) of on-site training and 50 hours of classroom instruction at the Snap-on training facility in Ft. Worth, Texas. The classroom training covers a range of topics including selling skills, computer training, business management and product knowledge regarding hand tools, tool storage, trade-ins, diagnostics and power tools. The in-the-field training program is conducted by Snap-on personnel, including a franchise developer and a business manager or sales developer, and lasts a minimum of three weeks.
Snap-on offers ongoing training and support, including assistance with bookkeeping and operational methods, inventory control methods, product knowledge, and sales and marketing. Assistance is available to franchisees through visits from field representatives, over the phone, in meetings, and through internet communication. Snap-on conducts national advertising campaigns and may opt to administer specialized, regional advertising programs as deemed appropriate. Furthermore, Snap-on arranges and distributes promotional materials.
Territory
Snap-on does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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