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FranchiseVerdict

How Much Does a Matco Tools Franchise Cost?

Data from the 2026 Franchise Disclosure Document

Investment Summary

Total Investment

$104K – $376K

Franchise Fee

$10K

Royalty

N/A

Ad Fund

N/A

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Matco Tools is $10K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Matco Tools franchise requires a total investment of $104K – $376K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $5K to $16K.

Ongoing Costs

Beyond the initial investment, Matco Tools franchisees pay ongoing fees.

Net Worth & Liquid Capital Requirements

Matco Tools requires working capital of $5K – $16K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Matco Tools's Item 19 financial performance representation:

$517KAvg. Gross Sales

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Matco Tools?

SBA Loans Issued

671

Default Rate

34.7%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Matco Tools has 671 SBA-backed loans on record. The default rate is 34.7%, which is above the franchise industry average, suggesting higher lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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