Snap-on Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Snap-on is a mobile franchise selling professional-grade tools and diagnostic equipment directly to auto and industrial technicians. Franchisees run a stocked tool truck along a protected route of repair shops, building repeat customer relationships.
FranchiseVerdict summary · 2026
A Snap-on franchise requires a total initial investment of $223K – $509K, including a $8K – $16K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 11.8% charge-off rate across 286 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $223K – $509K
- 31st pct Automotive
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- N/A
- Units
- 3,328
- 56th pct Automotive
- SBA charge-off
- 11.8%
- % 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 $223K – $509K including a $16K franchise fee.
- RETURNSItem 19 reports Paid Sales rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better). SBA loan charge-off rate of 11.8% across 286 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports Paid Sales rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Snap-on Tools Company LLC
- Parent company
- Snap-on Incorporated
- Predecessor
- Snap-on Incorporated and Snap-on Tools Company (Wisconsin corporation)
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- Timothy L. Chambers
- Incorporated in
- Delaware
- HQ
- 2801 80th Street, Kenosha, Wisconsin 53143
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $5.1B
- vs $5.2B prior year
Overview
About
- CEO
- Timothy L. Chambers
- Headquarters
- WI
- Founded
- 1920
- FDD year
- 2026
- States available
- 52
Can you afford it, and what does the money buy?
Entry cost runs 61% 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 | $16K | $16K |
| Working capital (3–6 mo) | $5K | $38K |
| 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $223K – $509K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $38K
- Top 40% of category vs category
- Franchise fee
- $8K – $16K
- Top 40% of category 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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Snap-on 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 Snap-on unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
31%
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
Reported for a subset of outlets rather than the whole system
- Median gross sales
- $756K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
No system-wide average is published for this brand. The median and range below are what Item 19 supports; we show an average only where it reconciles against them.
- Item 19 type
- Paid Sales
- Sample size
- 2,802
- vs category median 70 · large
- Range (low → high)
- $8K→$2.6M
- Cohort dispersion (min → max)
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 1 / 10
- vs category median 4 / 10 · below
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 Paid Sales rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -2.4% 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 Snap-on Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,328
- Opened
- 195
- Last reporting year
- Closed
- 25
- Turnover rate
- 13.5%
- Company-owned
- 169
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- -2.4%
- Net unit change over 3 years
- 3-yr CAGR
- -2.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 195
- Closed (3yr)
- 227
- Terminated (3yr)
- 195
- Non-renewed (3yr)
- 4
- Transfers (3yr)
- 141
- Reacquired (3yr)
- 1
- Franchisor bought back
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)
- 88.2%
- 5-yr charge-off
- 13.6%
- Loans approved 2021+
- Active lenders
- 116
- Defaults
- 25
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 29.8%
- brand beats franchise avg ↓
- Jobs supported
- 111
- 1.0 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 22% went to startups / new businesses, 78% 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
Snap-on charge-off rate by loan vintage
Top lenders financing Snap-on franchisees
Showing 3 of 116 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 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.
What could kill this investment?
SBA loans charge off at 11.8% — 26% below the 16.0% national norm, i.e. lower 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
Three pending matters including a franchise rescission/misrepresentation claim and a $2.35M misclassification class-action settlement — normal count for a large 3,328-unit system with financials in the billions (net worth $5.96B, net income $1.04B). Audited, Item 19 disclosed, no bankruptcy or going-concern.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 59 / 100 verdict
- 01MINOR3 pending suits incl. rescission and $2,350,000 class settlement — low relative to 3,328 units
- 02MINORVery strong financials: net worth $5,956,800,000, net income $1,042,300,000
- 03MEDAudited, Item 19 disclosed
- 04MINORNo bankruptcy, no going-concern
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 | 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?
Snap-on 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 Snap-on 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 Snap-on FDD and qualifies whose outlets they describe.
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 3,159 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 A-grade franchise with a verdict score of 59 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
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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.