Snap-on provides high-quality tools for repair professionals and maintenance workers.Tthis exclusive brand can send its 19,000 premium-grade, proprietary tools right to consumers’ homes or businesses. This article contains all you need to know about the cost of the Snap-on franchise.
Financial Cost of a Snap-On Franchise
If you wish to open a franchise, you must have $37,583 inaccessible capital. The business expects its new franchisees to be at least $37,583 in net worth.
Anyone opening a location should anticipate spending at least $169,223 on it. Anyone can open a franchise for as little as $15,000 or as much as $382,235.
New franchisees must pay the franchisor an initial franchise fee of $8,000.
Below is the overview of the costs;
Liquid Capital; $37,583-$55,545
Net Worth; $35,677–$53,366
Total Investment; $169,223-$382,235
Franchise Fee; $8,000-$16,000
Compared to the typical franchise charge in the auto repair sector or pretty much any other industry, Snap-on Incorporated has a far lower franchise fee. In this sector, a franchise typically costs between $20,000 and $50,000.
However, you could cover the franchise fee for Snap-on for ten years in some markets for just $8,000.
You can choose to extend the franchise agreement for an additional five years by paying the renewal charge, which is equal to 50% of the initial licensing fee in effect at the time.
Veterans will also receive a $20,000 reduction in the price of their initial tool inventory. You might also count on your veteran discount equity if you finance your company using Snap-on credit from one of their affiliates.
Since the lender will be aware of the franchise’s risks and prospects, this could make the finance process simpler.
The ongoing costs that you should be aware of are as follows:
Royalty fee; $120/month
Van Lease payment; $2,322–$2,722/month
Maintenance Fee Payment; $325/month
RA Loan payment; $1,047–$1,166/month
License Fee; $135 per month
History of the Snap-On Franchise
The company produced and sold ten sockets that could “snap on” to five different handles. 5 do the work of 50, according to the company’s slogan.
The corporate office was relocated to Kenosha, Wisconsin, in 1930. In preparation for the anticipated post-war sales boom, Stanton Palmer put out a call for a military officer to organize and grow a larger sales staff.
After hiring, Newton Tarble developed the concept of creating weekly routes for company dealers to see mechanics.
These salespeople eventually established themselves as independent entrepreneurs and authorized dealers, transporting an expanding product line in larger walk-in vans.
In 1974, the business established a wrench-forging facility in Elizabethton, Tennessee. The following year, Johnson City, Tennessee, saw the opening of a Snap-on production facility, which was shut down in 2007.
The company’s Milwaukee location was expanded in 2013 after workers there decided to join the Teamsters union in 1998.
The Murphy, North Carolina, factory was recognized by Industry week in 2010 as one of the top 10 facilities in North America.
Snap-on Industrial Brands replaced J.H. Williams & Co as the company’s legal name in 2011.
Information on the Snap-on Tools Franchise
What they are
As a market leader, Snap-on produces products that are universally acknowledged by professionals as being of the highest possible caliber.
Franchisees of Snap-on enjoy the fortunate opportunity to provide their clients with distinctive, high-end goods.
The Pioneer in the Industry
More than 19,000 goods, more than 130 countries of operation, and over 11,600 people are employed by Snap-on globally. More than 4,000 franchisees make up Snap-franchise on’s network.
An Innovation-Focused Commitment
At Snap-on, their unwavering commitment to excellence propels them to offer the most useful, innovative, and creative solutions to the professionals we support.
Customer listening and the best innovative thinking are transformed into successful goods and services when innovation is approached with a roll-up-your-sleeves attitude.
The professionals who rely on Snap-on items for a living value are our innovation and technology. Innovation is a feature that is in every one of their product lines.
In many aspects, the Snap-on franchise opportunity compares favorably to other franchise offers. The cost of entrance is quite low, the products are top of their class, and you will be called by people on a protected list.
Additionally, unlike typical leasing agreements, there is no costly investment in a permanent site location or recurring percentage rent.
Professionals across the board agree that Snap-on produces the absolute best tools available.
Low Initial Start-Up Costs
With funding from the Snap-on Franchise Finance Program, initial start-up costs can be as low as $46,062.
The financing options offered by Snap-on Credit Canada Ltd. may be sufficient to cover your initial investment requirements.
Average Sales/ Revenue Per Year
Top-performing tool brand Snap-on has a large potential market share. Systemwide annual revenues of $4,570,000,000 were generated by the corporation as of 2021, representing a 12% compound annual growth rate.
The company’s website indicates that there are at least 4,800 active units worldwide. With that in mind, the typical franchise generates $952,083 in annual revenue.
But, remember that the gross sales figure does not accurately represent the profit that an average franchisee will make.
A gross profit margin of 51.31%, or $488,513.78, is the average for Snap-on. According to the calculations above, the units had a gross profit margin of 59.74%, or $568,848, on their sales.
While this may seem encouraging, keep in mind that, depending on the situation, your company’s performance may vary.
As you establish a clientele of nearby clients, you should anticipate that the first one to two years of business performance would be sluggish.
Average Profit Per Year
Here is the compensation package for Snap-on franchise owners in 2020. As you can see, the annual profit per operator might vary greatly.
The good news is that with this chance, your earning potential is virtually limitless. You can see that in 2020 alone, 364 operators earned $1 million or more in a single year.
Keep in mind that these numbers don’t take the company’s annual operational expenses into account.
79 franchisees made $249,000 or less. (2.67% of total franchisees)
686 franchisees made $250,000–$499,999 (23.25% of total franchisees)
1,153 franchisees made $500,000–$749,999 (39.07% of total franchisees)
669 franchisees made $750,000–$999,999 (22.67% of total franchisees)
329 franchisees made $1 million–$1.49 million (11.15% of total franchisees)
32 franchisees made $1.5 million–$1.99 million (1.08% of total franchisees)
3 franchisees made $2 million or more (0.10% of total franchisees)
How to Begin Snap-On Tools Franchise
You need to be worth more than $172,000 to start a Snap-on business.
Your start-up out-of-pocket cost may vary based on how you pay for different aspects of the business, such as whether you buy or lease your mobile store.
Before submitting an application to open a Snap-on franchise, you should carefully assess your prior business experience.
Analyze the Market
Before moving forward with the franchising application, you should check the market availability for Snap-on franchises and determine if there are markets available in your target location.
Your route is your responsibility because no other Snap-on Tools franchisee gives the places on your list of calls.
The Snap-on franchise team will examine your application. Upon receiving your online application, you will receive a confirmation email. In this email, they will also include the franchise owner’s contact information.
Following the conclusion of your background and financial checks, you will be granted franchise clearance. Only applicants who fully satisfy the standards of franchise owners will receive approval.
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Obligations and Restrictions
Franchisees must make every attempt to aggressively promote and fully develop product sales at the stops on their list of calls. This is one of their obligations.
In order to increase their sales of items and deliver the level of service that their customers expect, franchisees must have an inventory of goods in at least the minimum quantity outlined in the “Snap-on Program.”
Franchisees must refrain from engaging in actions that might undermine these goals, and they must focus all of their professional attention and effort on achieving these goals.
Except for items they have accepted as a trade-in, franchisees are not allowed to sell or give away products that are directly in competition with those made by or for the franchisor.
Franchisees will also avoid operating a business that sells tools and equipment if it is inappropriate or inconsistent to do so. Only clients at the locations on their List of Calls may purchase merchandise from franchisees.
Franchisees will work with the franchisor to uphold all product warranties, which entails servicing tools and equipment at the client’s place of business.
The franchisor offers store management training before franchisees start running the business. Franchisees undergo Snap-on Franchise Store Management Training, or their store manager (in the case of an extra franchise).
At the moment, training consists of 135 hours of on-the-job training and more than 84 hours of classroom instruction.
Furthermore, snap-on retains the right to transfer the training facility or deliver the program online at any time.
The facility is currently located in Grapevine, Texas. When franchisees start their businesses, the franchisor conducts the initial field training.
Franchisees are required to participate in Franchise Store Management Training – Level 2, which is currently delivered virtually through web meetings.
But may also be completed at the franchisor’s training facility in Grapevine, Texas, by any other means, or at any other location that it specifies, between four and eight months after they start operating their business.
The franchisor advises franchisees and their store manager, if relevant, to take part in ongoing training, including Franchise Performance Team meetings, once they start running their franchise, but it is not a requirement (if provided by the franchisor).
These meetings are typically held once every three months, although the franchisor may arrange them more or less frequently as necessary.
Additionally, the franchisor encourages but does not compel, franchisees to participate in Franchise Development Training, kickoff events, and the Snap-on Franchisee Conference each year that it offers these training opportunities.
Advantages of Snap-On Franchise
Here is a list of benefits of owning a Snap-on franchise;
Potential for Growth; You want to be able to make a good life when you join a franchise. Why take on all this risk as an entrepreneur if you can’t earn a wage that is higher than the average?
Fortunately, Snap-on allows business owners who are among their top performers to make more than $1 million every year.
Strongly Pervasive Presence; There are more than 4,800 Snap-on franchise locations worldwide. 3,400 roaming mobile retail showrooms are present in the US alone. You no longer need to battle to establish your presence online because Snap-on has nearly a century of brand recognition.
Premium Grade Products; In the US, Snap-on is regarded as the “Overall Best Power Tool.” Their premium, adaptable items are so well-liked by customers that they won the top spot in the Tools Distribution category from 2021 to 2022.
Additionally, they have a wide selection, with over 22,000 products for a range of uses.
Mandatory Training and Upskilling; Snap-on ensures that you are capable of handling the responsibilities of being a franchise owner through mandatory training and upskilling.
They provide management training that lasts 84 hours in the classroom and 135 hours in the workplace. You can still choose this franchise even if you lack experience.
Disadvantages of Snap-On Franchise
Here are some of the difficulties you might anticipate with this business.
Limited Entrepreneurial Growth: Mobile trucks do provide you the freedom to go where there is a need, but with this franchise, that may not be possible.
The list of clients you would do business with and the travel routes are very restricted by Snap-on. The business model of Snap-On can irritate you if you’re looking for prospects for growth.
Explicitly Priced Goods; Customers show they are prepared to spend more on quality, even if Snap-on tools are pricey for a reason. Even though everyone wants to obtain a decent deal, superior products actually cost more to make.
Issues With Snap-On Credit; Even though credit can be useful, especially if you lack the funds to launch a business, it can also be problematic.
Some of Snap-franchise on’s owners have complained about being caught in a debt cycle, which has caused friction between the two parties.
They impose interest rates ranging from 17.9% to 19.5% on their debtors. People on forums have cautioned potential customers from investing their savings in the company due to its irresponsible lending policy.
LawSuit Records; Records from court cases show that franchise owners have accused Snap-on of having a number of legal problems that have caused their businesses to fail.