Did you ever think about owning a Mac Tools franchise? They are a famous brand with thousands of employees around the United States. They offer franchising to those interested and have adequate capital.
This article will give you an insight into Mac Tools’ franchise system, how it works, what support they provide, and what you need to know.
About Mac Tools and Mac Tools History
Mac Tools is an American professional tool and related equipment manufacturer with headquarters in Ohio. They have over 8,000 tools in their line and produce their own line of tools and carts in their manufacturing plant.
They were founded in 1938 as the Mechanics Tool and Forge Company in Ohio. Their aim was to manufacture high-quality professional and mechanic tools. They grew quickly, acquiring large government contracts and producing quality work.
Franchise Model Table
How Much Does it Cost to Open a Mac Tools Franchise?
The total expected initial investment is between $120,010 and $343,535 to open a Mac Tools franchise. This cost includes the $8,000 franchise fee and all other related startup costs. The rent or the mortgage, equipment, training, salaries, and some operational expenses.
Depending on the location and the number of routes you want to operate, this number could be higher or lower than the average.
Mac Tools doesn’t require any kind of personal background in the potential franchisees. It’s a plus if you have management experience or an experience in the industry, but it’s not a must.
On the other hand, you require a liquid capital of $40,000 and enough cash to cover the expected initial investment, including the franchise fee.
There is no net worth requirement, only liquid capital.
Profit & Revenue
Mac Tools is owned by Stanley Black & Decker, so there is no detailed information on the profit and revenue numbers of Mac Tools.
According to some reports, the net income for Mac Tools, as per the latest report, was $39 billion.
The Mac Tools average franchise store sales numbers were $440,474. The average profit margin is between $10% to 20%, which leaves an estimated profit of between $44,047 to $88,094 annually from the average sales numbers.
Training and Support
The franchise candidate must join an existing Mac Tools franchisee on the franchisee’s route selected by the franchisor.
This is called a mentor ride, and it lasts approximately five business days, and the candidate has to attend it one week before the initial training.
The initial and mandatory training is classroom training that lasts five to eleven days, depending on the class’s size, and it’s held in Ohio.
The franchisee also receives one-to-one training with a Mac Tools representative in the first five days of their operation.
Obligations and Restrictions
The owner of the franchise branch must also actively participate in the management of the store and operate it. If the franchisee has multiple routes, an employee can manage the other.
The customers you make sales to must be commercial users of tools and equipment. The products can not be sold to someone in the reselling business.
Terms of Agreement & Renewal
The term of the first franchise agreement you are going to make with Mac Tools is for 10 years.
Unless one party or both parties would like to terminate the agreement under the terms laid out in the agreement.
So if the franchisee meets the renewal conditions, a renewal is available. This renewal is one renewal term of 10 years.
Mac Tools doesn’t offer direct financial assistance, but they have a contractual relationship with a third-party provider, Wells Fargo.
They offer financial assistance to qualified applicants to buy the starter inventory, truck, and also other operational expenses.
The means and conditions of the financial assistance are determined by Wells Fargo.
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So Mac Tools is a popular tool manufacturing company operating since 1938. They currently offer franchising to those interested, and they have a very extensive support system in place.
The required investment is between $120,010 to $343,535 on average. The average profit per franchised store is between $44,000 to $88,000. It could be an extremely lucrative opportunity.
What is the franchise fee for Mac Tools?
The franchise fee for Mac Tools is $8,000 in a lump sum and is a one-time payment fee.
How much does it cost to open a Mac Tools?
On average, the total cost is between $120,010 and $343,535, including the franchise fee
Is Mac Tools a franchise?
Yes. Mac Tools is currently a franchise.