Snap-on Tools Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$16,000
Investment required
$218,000 - $482,000
Royalty fee
$145 per month

Snap-on Tools: Delivering Professional-Grade Equipment Directly to You

Founded in 1920 by Joseph Johnson and Bill Seidemann in Milwaukee, Wisconsin, Snap-on Tools has established itself as a premier designer, manufacturer, and marketer of high-quality tools and equipment for professional use across various industries, including automotive, aviation, and marine. The company is headquartered in Kenosha, Wisconsin.

In 1991, Snap-on Tools began franchising, offering entrepreneurs the opportunity to operate mobile stores that bring a comprehensive range of products—such as hand tools, power tools, diagnostic equipment, and tool storage solutions—directly to customers' workplaces.

This unique mobile model eliminates the need for a traditional brick-and-mortar storefront, allowing franchisees to deliver personalized service and convenience to professionals in their work environments.

Snap-on Tools differentiates itself through its commitment to innovation, quality, and customer engagement. Franchisees benefit from a protected list of calls, ensuring exclusive access to a defined customer base within their territory.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Real Estate $0 - $0
Initial License Fee $8,000 - $16,000
Initial Inventory $135,000 - $145,000
Electronic Signature Pad $0 - $200
Supplies $0 - $400
Van $65,000 - $195,000
Van Insurance (3 months) $773 - $2,750
Van Delivery Charge $200 - $4,750
License $200 - $2,400
Acquisition/Development of Revolving Accounts $0 - $85,000
Other Equipment, Fixtures, and Expenses $150 - $170
Software License Fee $0 - $2,800
Documentation Fee with Franchise Finance Loan $100 - $250
Minimum Down Payment with Franchise Finance Program $25,000
Additional Funds (3 Months) $5,382 - $27,516
Estimated Total Initial Franchise Expense $217,505 - $481,554

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Number of units

2024
Franchised units

3,287

3,270

3,238

Company-owned units

141

139

140

Total units

3,428

3,409

3,378

Franchise Disclosure Document

Training

The Snap-on franchise provides comprehensive training to franchisees to ensure effective business operations. This training includes:

  1. Initial Classroom Training: Before starting operations, franchisees attend a classroom program covering essential topics such as business understanding, selling and collection skills, product knowledge, credit programs, and computer training. This training is aimed at preparing franchisees with the necessary skills and knowledge.
  2. Field Initial Training: Conducted when the franchise begins operations, this training is scheduled flexibly to suit the needs of the franchisee or their store manager. It complements classroom training by providing on-the-ground guidance.
  3. Ongoing Training Opportunities: Snap-on suggests, but does not mandate, that franchisees participate in periodic training sessions, including specialized training, kickoff meetings, and annual conferences. These programs focus on updates in products, sales techniques, and franchise performance.
  4. Franchise Store Management Training (FSMT): This program is mandatory for new franchisees and includes a variety of structured sessions. For additional or replacement managers, a fee may apply for their training.

Territory Protection

Snap-on does not provide exclusive territorial rights to its franchisees, allowing potential competition from the franchisor or other franchisees. Franchisees operate within defined "Lists of Calls," but Snap-on reserves the right to sell products through other channels, including online or nearby retail locations.

While Snap-on avoids directly licensing competitors within a franchisee's "List of Calls," it retains flexibility to operate or sell in overlapping markets. This arrangement emphasizes the need for franchisees to build strong local customer relationships to succeed amidst potential competition.

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