Snap-onFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Snap-on franchise requires a total initial investment of $223K – $509K, including a $16K franchise fee. Per the 2026 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 11.8% charge-off rate across 286 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $223K – $509K
- 24th pct Automotive
- Avg gross sales
- $1.3M
- 15th pct Automotive
- Royalty
- N/A
- Units
- 3,328
- 42nd pct Automotive
- SBA default
- 11.8%
- 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 3.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1990. Systems this mature have refined operations and brand recognition.
Franchised units fell from 3270 to 3159 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $223K – $509K including a $16K franchise fee.
- Average unit revenue of $1.3M/year (median $756K).
- Verdict F (Bottom Quintile) with a risk score of 78/100. SBA loan charge-off rate of 11.8% across 286 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Established system with 3,328 units across 36 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Snap-on Tools Company LLC
- Parent company
- Snap-on Incorporated
- Incorporated in
- DE
- HQ
- 2801 80th Street, Kenosha, Wisconsin, 53143
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $5.1B
- vs $5.2B prior year
Overview
About
Snap-on franchisees operate mobile tool and equipment distribution businesses, traveling to industrial and automotive customer locations (shops, factories, construction sites) to sell professional-grade tools, diagnostic equipment, and related products. Day-to-day activities include route management, customer relationship building, inventory management, and sales execution across assigned protected territories.
- CEO
- Timothy L. Chambers
- Founded
- 1920
- FDD year
- 2026
- States available
- 52
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $16K | $16K |
| Working capital (3–6 mo) | $5K | $39K |
| Equipment, build-out, other | $202K | $455K |
| Total initial investment | $223K | $509K |
Source: Snap-on 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
$210K
16.0% margin
Unlevered ROIC
54%
EBITDA / total invested capital
Payback
22 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $223K – $509K
- Better than avg vs category
- Liquid capital req'd
- $5K – $39K
- Better than avg vs category
- Franchise fee
- $8K – $16K
- Better than avg vs category
- Royalty
- $156.00 per month
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $94 |
| Transfer fee | $16K |
| Renewal fee | $8K |
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $756K
- Item 19 type
- Paid Sales
- Sample size
- 2802 units
- vs category median 70 · large
- Range (low → high)
- $8K→$2.6M
- Cohort dispersion (min → max)
- Transparency
- 1 / 5
- vs category median 4 / 5 · below
Compared against 221 Automotive brands
vs Automotive averages
How Snap-on Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,328
- Opened
- 195
- Last reporting year
- Closed
- 25
- Turnover rate
- 0.8%
- Company-owned
- 169
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- -2.4%
- Net unit change last year
- 3-yr CAGR
- -3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 141
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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
- 286
- Loan volume
- $34.2M
- Median loan
- $130K
- 50th percentile
- Charge-off rate
- 11.8%
- 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)
- 81.5%
- 5-yr charge-off
- 13.6%
- Loans approved 2021+
- Active lenders
- 116
- Defaults
- 25
Vintage analysis
Snap-on 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 Snap-on'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
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Snap-on presents a CAUTION-to-HIGH RISK profile: declining market presence, active misclassification litigation, undisclosed earnings, and labor compliance issues create material uncertainty around franchisee viability and franchisor accountability.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 78 / 100 rating
- 01MINORDeclining unit count (-2.4% YoY) suggests system contraction and potential market saturation
- 02HIGH7 total litigation cases involving misclassification of franchisees—3 pending—indicating systemic employment classification disputes
- 03MINORNo Item 19 (average revenue/income disclosure) prevents validation of franchise profitability claims
- 04MINORHigh initial investment ($223k–$509k) combined with low monthly royalty ($156) suggests reliance on upfront fees rather than revenue sharing
- 05MINORMultiple labor code violation settlements indicate potential compliance issues with franchisee treatment
- 06MINORData security breach settlement raises operational and liability concerns
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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | List of Calls |
| Protected territory | Yes |
| 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 | State in which the List of Calls is located |
| Litigation count | 7 |
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 135 hrs
- POS system
- Snap-on Chrome
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Snap-on Chrome
Item 20 · call current owners
Franchisee Contacts
95 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Snap-on · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Snap-on franchise?
The total investment to open a Snap-on franchise ranges from $223K – $509K, with an initial franchise fee of $16K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Snap-on franchise owners earn?
According to Item 19 of the Snap-on FDD, the average gross sales per unit is $1.3M. The median is $756K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Snap-on's franchise failure rate?
Based on SBA 7(a) loan data, Snap-on has a charge-off rate of 11.8% across 286 loans, meaning 11.8% 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 Snap-on franchise locations are there?
As of their most recent FDD filing, Snap-on has 3,328 total units in the United States, including 3,270 franchised units and 169 company-owned units. 195 new units were opened in the latest reporting year.
Is Snap-on a good franchise to buy?
FranchiseVerdict rates Snap-on as a F-grade franchise with a risk score of 78 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.