Matco ToolsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $104K – $376K
- 12th pct Automotive
- Avg gross sales
- $517K
- 5th pct Automotive
- Royalty
- N/A
- Units
- 1,741
- 40th pct Automotive
- SBA default
- 34.7%
- 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
34.7% of SBA loans charged off across 671 loans, above the 16% franchise average.
Franchising since 1993. Systems this mature have refined operations and brand recognition.
Franchised units fell from 1841 to 1741 over 3 years. Investigate why operators are leaving.
29 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $104K – $376K including a $10K franchise fee.
- Average unit revenue of $517K/year.
- Verdict C (Average) with a risk score of 68/100. 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, 2010–2024).
- 29 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
- Matco Tools Corporation
- Parent company
- Vontier Corporation
- Incorporated in
- DE
- HQ
- 4403 Allen Road, Stow, OH 44224
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $3.1B
- vs $3.0B prior year
Overview
About
Matco Tools franchisees operate as independent mobile distributors, traveling to service shops, garages, and manufacturing facilities to sell professional-grade hand tools, power tools, and diagnostic equipment directly from a truck or service vehicle. Franchisees manage inventory, customer relationships, and route logistics while building recurring revenue through weekly or bi-weekly stops at established accounts.
- CEO
- Mike Dwyer
- Headquarters
- OH
- Founded
- 1946
- FDD year
- 2026
- States available
- 49
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.
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
$83K
16.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $376K
- Better than avg vs category
- Liquid capital req'd
- $5K – $16K
- Better than avg vs category
- Franchise fee
- $7K – $10K
- Better than avg vs category
- Royalty
- -n/d
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Renewal fee | $5K |
Financial Performance
- Avg gross sales
- $517K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Average Total Completed Business
- Sample size
- 1491 units
- vs category median 70 · large
- Range (low → high)
- $22K→$2.2M
- Cohort dispersion (min → max)
- Transparency
- 5 / 5
- vs category median 4 / 5 · above
Compared against 221 Automotive brands
vs Automotive averages
How Matco Tools Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,741
- Opened
- 211
- Last reporting year
- Closed
- 281
- Turnover rate
- 16.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -3.9%
- Net unit change last year
- 3-yr CAGR
- -5.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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
- 671
- Loan volume
- $53.5M
- Median loan
- $60K
- 50th percentile
- Charge-off rate
- 34.7%
- 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
Vintage analysis
Matco Tools charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Matco 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
- 32-year lending trend
Instant access. No subscription.
A 34.7% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 68 / 100 rating
- 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
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 | List of Calls |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 29 |
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 160 hrs
- POS system
- Matco Distributor Business System (MDBS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Matco Distributor Business System (MDBS)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Matco Tools · FDD (2026) PDF
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.
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 1,841 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 risk score of 68 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.