Matco Tools Franchise Cost, Revenue & Review 2026
- Investment
- $104K – $376K
- Disclosed sales
- $517K
- gross sales, not profit
- SBA charge-off
- 34.7%
- on 671 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Matco Tools is a mobile franchise selling professional hand tools, power tools, and diagnostics directly to mechanics and technicians. Franchisees run a stocked tool truck on a protected route of repair shops, building recurring accounts.
FranchiseVerdict summary · 2026
A Matco Tools franchise requires a total initial investment of $104K – $376K, including a $10K franchise fee. Per the 2026 FDD, average unit revenue was $517K[2]. SBA 7(a) loans show a 34.7% charge-off rate across 671 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $104K – $376K
- 15th pct Automotive
- Avg gross sales
- $517K
- 2nd pct Automotive
- Royalty
- Not extracted
- Units
- 1,741
- 53rd pct Automotive
- SBA charge-off
- 34.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $104K – $376K including a $10K franchise fee.
- RETURNSAverage unit revenue of $517K/year.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 34.7% across 671 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -70 franchised outlets in the latest year (211 opened, 281 closed); 3 signed but not yet open (Item 20).
- LEGAL29 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
Corporate structure & franchisor financials
- Legal entity
- Matco Tools Corporation
- Parent company
- MTH Holding LLC
- Ultimate parent
- Vontier Corporation
- Predecessor
- NMTC, Inc. d/b/a Matco Tools; Matco Tools Corporation (MTC)
- Prior franchisor entity
- CEO title
- President
- Mike Dwyer
- Incorporated in
- DE
- HQ
- 4403 Allen Road, Stow, Ohio 44224
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $3.1B
- vs $3.0B prior year
Overview
About
- CEO
- Mike Dwyer
- Headquarters
- OH
- Founded
- 1979
- FDD year
- 2026
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 35% below the typical automotive franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $5K | $16K |
| Equipment, build-out, other | $89K | $350K |
| Total initial investment | $104K | $376K |
Source: Matco Tools 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $376K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $16K
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- No royalty. Distributors are not required to pay any mont…
- Ad fund
- No advertising fund. Matco does not have advertising coop…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $475 |
| Renewal fee | $5K |
| Inventory (initial) | $56K – $92K |
What do units actually make?
Average unit sales run 50% below the automotive norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Matco Tools until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$251K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Matco Tools unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $517K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 1,491 franchisees
- vs category median 70 · large
- Range (low → high)
- $22K→$2.2MCited, not corroborated — printed on page 82 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 5 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $517K/year in gross sales. Revenue-to-investment ratio: 2.2x.
Disclosure
Transparency score 5/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -5.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Matco Tools Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,741
- Opened
- 211
- Last reporting year
- Closed
- 281
- Terminated
- 59
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 9
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -5.4%
- Net unit change over 3 years
- 3-yr CAGR
- -5.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 59
- Not renewed
- 9
- Signed, not yet open
- 3
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 260
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 49 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
49
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 671
- Loan volume
- $53.5M
- Median loan
- $60K
- 50th percentile
- Charge-off rate
- 34.7%
- on 671 loans · 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)
- 65.3%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 95
- Defaults
- 226
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 29.8%
- brand above franchise avg ↑
- Jobs supported
- 362
- 0.7 per loan
- Lender concentration
- 22%
- top lender's share
Borrower mix: 17% went to startups / new businesses, 83% to established operators
Franchise vs independent — in other direct selling establishments, franchised businesses charge off at 29.8% vs 15.9% for independents — franchising is associated with 87% higher SBA default risk in this category.
Vintage analysis
Matco Tools charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Matco Tools franchisees
Showing 3 of 95 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Matco Tools from SBA 7(a) FOIA data.
- Principal loss rate
- 19.2%
- Avg SBA guarantee
- 79%
- Avg interest rate
- 7.73%
- Avg chargeoff amount
- $45K
- Lender concentration
- 22.1%
- Job velocity
- 0.7 per $100K
- NAICS benchmark
- 32.9%
- NAICS 454390
- Jobs supported
- 362
Top SBA lendersTop lender holds 22% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | GE Capital Small Business Finance Corporation | 148 | $15.2M | 39.2% |
| 2 | CitiCapital Small Business Finance, Inc. | 145 | $8.3M | 59.1% |
| 3 | BMO Bank National Association | 63 | $6.2M | 17.5% |
| 4 | Bank of America, National Association | 58 | $4.6M | 15.5% |
| 5 | TD Bank, National Association | 27 | $2.7M | 37.0% |
| 6 | The Huntington National Bank | 19 | $1.1M | 29.4% |
| 7 | Wells Fargo Bank National Association | 18 | $811K | 16.7% |
| 8 | Business Lenders, LLC | 17 | $1.9M | 88.2% |
| 9 | Aurora Interim National Bank | 15 | $983K | 26.7% |
| 10 | Truist Bank | 11 | $959K | 27.3% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 68 | 23 | 34.8% |
| OHOhio | 37 | 14 | 40.0% |
| CACalifornia | 36 | 10 | 30.3% |
| FLFlorida | 36 | 20 | 57.1% |
| GAGeorgia | 32 | 5 | 16.1% |
| NJNew Jersey | 32 | 7 | 21.9% |
| MIMichigan | 28 | 14 | 50.0% |
| PAPennsylvania | 24 | 6 | 26.1% |
| NYNew York | 22 | 5 | 22.7% |
| MOMissouri | 21 | 5 | 23.8% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 34.7% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 34.7% — 117% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Matco Tools presents a CAUTION-to-HIGH RISK profile due to system contraction, litigation exposure, non-disclosed financials, and unclear profitability in a declining market.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Pending actions include a data security class action (Faduie et al.), financing-related case (Jim's Speed Shop), and multiple Matco collection arbitrations against former distributors. Concluded actions include a large California class action settlement (Fleming, paid $13.46M), and various other distributor disputes. One Consent Order from California DFPI (May 2025, $5,000 penalty for franchise disclosure errors).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the audited consolidated financials of the parent, Vontier Corporation and Subsidiaries (Matco Tools' ultimate parent), for fiscal years ended December 31, 2025 and 2024. Total sales = product sales ($2,754.9M) + service sales ($320.7M). Figures reported in millions; not Matco-only standalone financials. Item 8 states the franchisor's own total revenue as $570,020,000 (FY ending 2025-12-31); the statements above are the parent's.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORSystem declining 3.9% YoY with 1,741 units — indicates market contraction and potential saturation in mobile tool distribution
- 02MEDNo disclosed net income despite $516,708 average revenue — suggests razor-thin margins or significant unreported costs
- 03HIGHMultiple litigation exposures including data breach class action, collection actions against distributors, and independent contractor misclassification claims — indicates operational and legal instability
- 04MINORUnknown royalty structure prevents accurate profitability analysis — lack of transparency is a major red flag
- 05MEDHigh investment range ($104K-$376K) combined with undisclosed net income creates poor ROI visibility and capital at risk
- 06MINORClass action data security incident suggests inadequate systems and potential franchisee liability for customer data loss
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 45 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Summit or Cuyahoga County, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 29 |
View Item 3 litigation summary
Pending actions include a data security class action (Faduie et al.), financing-related case (Jim's Speed Shop), and multiple Matco collection arbitrations against former distributors. Concluded actions include a large California class action settlement (Fleming, paid $13.46M), and various other distributor disputes. One Consent Order from California DFPI (May 2025, $5,000 penalty for franchise disclosure errors).
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 160 hrs
- Training location
- Matco corporate offices, Stow, Ohio (and virtually for Phase 2)
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- MDBS (Matco Distributor Business System)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MDBS (Matco Distributor Business System)
Item 20 · call current owners
Franchisee Contacts
339 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Matco Tools franchise?
The total investment to open a Matco Tools franchise ranges from $104K – $376K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Matco Tools franchise owners earn?
According to Item 19 of the Matco Tools FDD, the average gross sales per unit is $517K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Matco Tools?
Matco Tools is franchised by Matco Tools Corporation. Its parent company is MTH Holding LLC. The ultimate parent named in the FDD is Vontier Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Matco Tools FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Matco Tools FDD and qualifies whose outlets they describe.
What is Matco Tools's franchise failure rate?
Based on SBA 7(a) loan data, Matco Tools has a charge-off rate of 34.7% across 671 loans, meaning 34.7% 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 Matco Tools franchise locations are there?
As of their most recent FDD filing, Matco Tools has 1,741 total units in the United States, including 1,741 franchised units and 0 company-owned units. 211 new units were opened in the latest reporting year.
Is Matco Tools a good franchise to buy?
FranchiseVerdict rates Matco Tools as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent Matco Tools, you can request corrections or provide updated information.
Other Automotive franchises
Compare similar franchise opportunities in the Automotive category
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.