Mac ToolsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mac Tools franchise requires a total initial investment of $138K – $418K, including a $8K franchise fee. Per the 2026 FDD, average unit revenue was $1.0M[2]. SBA 7(a) loans show a 21.5% charge-off rate across 73 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $138K – $418K
- 16th pct Automotive
- Avg gross sales
- $1.0M
- 12th pct Automotive
- Royalty
- N/A
- Units
- 832
- 38th pct Automotive
- SBA default
- 21.5%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.7x in gross revenue, well above the typical 1.5-2.5x range.
21.5% of SBA loans charged off across 73 loans, above the 16% franchise average.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $138K – $418K including a $8K franchise fee.
- Average unit revenue of $1.0M/year.
- Verdict F (Bottom Quintile) with a risk score of 95/100. SBA loan charge-off rate of 21.5% across 73 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 11 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Stanley Industrial & Automotive, LLC
- Parent company
- Stanley Black & Decker, Inc.
- Incorporated in
- DE
- HQ
- 5195 Blazer Parkway, Dublin, Ohio 43017
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $15.4B
- vs $15.1B prior year
Overview
About
Mac Tools franchisees operate as mobile tool distributors, selling professional-grade hand tools and equipment directly to mechanics and technicians at service stations, dealerships, and job sites. Franchisees manage their own routes, customer relationships, and inventory while operating under the Mac Tools brand, utilizing company-provided product lines and business systems.
- CEO
- Doug Redpath
- Headquarters
- OH
- Founded
- 1938
- FDD year
- 2026
- States available
- 51
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $8K | $8K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $100K | $360K |
| Total initial investment | $138K | $418K |
Source: Mac Tools 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$164K
16.0% margin
Unlevered ROIC
51%
EBITDA / total invested capital
Payback
23 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $138K – $418K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $8K – $8K
- Better than avg vs category
- Royalty
- 1,200 per year
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $900 |
| Transfer fee | $4K |
| Renewal fee | $4K |
Financial Performance
- Avg gross sales
- $1.0M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 894 units
- vs category median 70 · large
- Range (low → high)
- $19K→$2.0M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 221 Automotive brands
vs Automotive averages
How Mac Tools Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 832
- Opened
- 112
- Last reporting year
- Closed
- 102
- Turnover rate
- 12.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (yr3)
- +1.2%
- Net unit change last year
- 3-yr CAGR
- +2.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 73
- Loan volume
- $8.7M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 21.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 78.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 28
- Defaults
- 14
Vintage analysis
Mac Tools charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mac Tools's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 19-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 21.5% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mac Tools presents HIGH RISK due to active litigation over franchisee misclassification, shrinking franchise base, undisclosed financial performance, and franchisor financial instability.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 95 / 100 rating
- 01HIGHActive litigation involving misclassification claims and securities violations suggests systemic franchisor practices may expose franchisees to legal liability
- 02MINORDeclining unit count (1.2% YoY contraction) indicates system-wide performance deterioration and potential franchisee churn
- 03HIGHGoing concern status is FALSE, signaling the franchisor may lack financial stability or operational viability
- 04MINORNo Item 19 (average revenue/income disclosure) prevents validation of stated investment returns and profitability claims
- 05MINORUnprotected territory creates direct competition risk from other Mac Tools franchisees in same market
- 06MINORFixed $1,200 annual royalty structure may mask true profitability if revenue disclosure is withheld intentionally
- 07MINORHistory of labor code violations and breach of warranty settlements indicates recurring compliance and performance gaps
- 08MINORLow franchise fee ($8,000) relative to total investment ($137k-$418k) suggests high equipment/inventory requirements with unclear ROI
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Route |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 11 |
Items 10, 11
Training & Operations
- Classroom training
- 67 hrs
- On-the-job training
- 120 hrs
- POS system
- Business Software (Account Management Portal - AMP)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Business Software (Account Management Portal - AMP)
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mac Tools · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mac Tools franchise?
The total investment to open a Mac Tools franchise ranges from $138K – $418K, with an initial franchise fee of $8K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mac Tools franchise owners earn?
According to Item 19 of the Mac Tools FDD, the average gross sales per unit is $1.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Mac Tools's franchise failure rate?
Based on SBA 7(a) loan data, Mac Tools has a charge-off rate of 21.5% across 73 loans, meaning 21.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Mac Tools franchise locations are there?
As of their most recent FDD filing, Mac Tools has 832 total units in the United States, including 772 franchised units and 0 company-owned units. 112 new units were opened in the latest reporting year.
Is Mac Tools a good franchise to buy?
FranchiseVerdict rates Mac Tools as a F-grade franchise with a risk score of 95 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.