Bottom line
- Total investment $138K – $418K including a $8K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 90 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Mac Tools unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mac Tools · FDD (2026) PDF