Snap-on Tools franchise

Hassle-free business loans to start your Snap-on tools franchise.

Snap-on Tools is a US-based tools manufacturer and distributor, selling professional tools and diagnostic equipment to automotive dealers, garages and workshops as well as farm and industrial businesses, boat yards, and marine and aviation specialists. Snap-on Tools franchisees operate from branded mobile stores, selling products to customers on an exclusive call list. 

Snap-on Tools business details

With headquarters in Kenosha, Wisconsin, Snap-on Tools have been manufacturing and distributing tools for professional use since 1920 and offering franchise opportunities since 1991. A globally recognized brand, Snap-on is known for their high-quality, precision-made products. The company currently operates in over 130 countries, employs +13,000 associates, and has +4,700 franchises worldwide.

Snap-on tools at a Glance

  • US stores: Approximately 1,950
  • Required Investor net worth: +$44,000
  • Required investor liquid cash: +$44,000
  • Min. investment: $200,000
  • Max. investment: $500,000
  • Standard franchise term: 10 years

Can I start a Snap-on Tools franchise?

As well as minimum net worth and available cash of at $44,000 each, you must be prepared to pay at least $200,000 to get into a Snap-on Tools franchise. Like other companies in this sector, such as Matco and Mac, Snap-on accepts franchisees who have no previous experience of the tools industry. However, this is not a ‘hands off’ or part-time opportunity. Snap-on expects all their franchisees to be actively engaged with running the business and interacting with customers on a daily basis.

How much does a Snap-on Tools franchise cost?

Starting a Snap-on Tools franchise is not something you can do with loose change. Estimated starting costs range from $200,000 to $500,000 for a full bells and whistle package and the average investment is over $300k. That ranks the franchise cost as moderate to high. On the plus side, you don’t need to buy or lease expensive commercial real estate to run a Snap-on franchise. All US franchisees operate from mobile store vehicles. The initial franchise fee is $8,000 to $16,000.  Snap-on provides a $20,000 inventory gift to franchisees who are military veterans.

After opening, you are required to pay an array of ongoing fees and charges. They include:

  • License fee: $145 per month
  • Computer software and development: $85 
  • Transfer fee: $16,000
  • Web page maintenance fee: $195 per year
  • Late fees: 4% over regular bank rate

Estimated key costs to open a Snap-on Tools franchise:

Key Costs GuideLowHigh
Franchise fee$8,000$16,000
Real estate$0$0
Initial inventory$135,000$145,000
Mobile store – vehicle $65,000$195,000
Electronic signature pad$0$200
Store supplies$0$400
Insurance – 3 months premiums$800$2,750
Van delivery charge$200$4,750
License$200$2,400
Other costs – three months$5,000$27,500

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Are Snap-on Tools franchises profitable?

They can be. The average Snap-on Tools franchise generates revenues of $803,000, or two and half times the typical investment cost of $333,000. However, these are gross figures, not net earnings – which is the cash left over after paying all expenses of the business. Net profits in this industry range from 10% to 20%. If your profits were 15% – $120,000 per year – it would take 2.7 years to get the average investment back, which ranks as a good payback. Note that according to Glassdoor, Snap-on Tools franchise owners collect an average gross salary of $48,000 to $52,000 per year. This is less than the average US franchise owner income (all industries) of $60,000 per year.

What is the failure rate for a Snap-on Tools franchise?

Very low. Even though the number of Snap-on Tools stores, both franchised and company owned, has been in slow decline for several years, the failure rate is miniscule. In 2022, 17 US franchises went out of business – 0.5% of total US franchise stores.

Why should you start a Snap-on Tools franchise?

Despite a starting price that is not cheap and personal income that is modest, a low failure rate and the speedy return of investment make Snap-on Tools a solid franchise possibility. If you’re mechanically minded and you like the idea of going out on the road to sell your wares to a range of interesting businesses, a Snap-on franchise could be the opportunity for you.

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What are the franchise territory policies for Snap-on Tools?

Franchisees are provided with an exclusive ‘call list’ that identifies a minimum of 200 potential customers along a designated call route. Franchisees can only sell to the customers on their call list. If franchisees remain in compliance with their distributorship agreement, Snap-on will not grant another franchise that is authorized to sell products to the customers identified on their initial call list.

What franchise resources does Snap-on Tools offer?

Snap-on Tools support for franchisees includes:

  • Training: Before they launch their store, franchisees must complete Snap-on’s Franchise Store Management Training which currently consists of over 80 hours of classroom training and 135 hours of on-the-job training. The training school is currently located in Grapevine, Texas. Between four to eight months after franchisees begin operating their business, franchisees are required to attend Franchise Store Management Training – Level 2. Once franchisees begin operation of their franchise, Snap-on suggests, but does not require, that franchisees participate in ongoing training, including Franchise Performance Team meetings. The company generally holds these meetings on a monthly or quarterly basis. 
  • Marketing support: Snap-on provides signage, catalogs, merchandising, point of sale, promotional and other marketing support for their franchisees.
  • Third-party financing: Snap-on provides financial support for investors seeking franchise funding. However, you may obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

What is the process for starting a Snap-on Tools franchise?

It begins with an application. Start the process here.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new tools distribution business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://sharpsheets.io/blog/snap-on-tools-franchise-sales-costs-profits/

Snap-on Tools average salary: https://www.glassdoor.co.uk/Salary/Snap-on-Franchise-Owner-Salaries-E604_D_KO8,23.htm

Average investment: https://sharpsheets.io/blog/snap-on-tools-franchise-sales-costs-profits/

Snap On Tools franchise application: https://www.snapon.com/EN/Franchise/Why-Own-It/About-Snap-on-Franchise

Snap On Tools: https://www.snapon.com/EN/Franchise/Why-Own-It/About

Failure rate: https://www.vettedbiz.com/snap-on-franchise/

Set-up costs: https://www.franchisedirect.com/automotivefranchises/snap-on-tools-franchise-07086/ufoc/

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