Matco Tools Franchise Cost, Revenue & Review 2026
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. The 2026 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $104K – $376K
- 15th pct Automotive
- Avg gross sales
- N/A
- Royalty
- N/A
- 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 avg · 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.
- RETURNSItem 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.
- 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).
- 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 74% 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?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Matco Tools did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Matco Tools unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
48%
Within the 30–60% "attractive franchise" band
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
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 19 type
- gross revenue
- Sample size
- 1,491
- vs category median 70 · large
- Range (low → high)
- $22K→$2.2M
- 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.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 averages
How Matco Tools Compares
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
- 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
3-year detail · Item 20
- Opened (3yr)
- 211
- Closed (3yr)
- 213
- Terminated (3yr)
- 59
- Non-renewed (3yr)
- 9
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
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%
- 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.
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.
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)
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).
Largest disclosed settlement: $13,462,174
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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 |
| 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
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?
Matco Tools does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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), 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.
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.