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Description

How To Open a Snap-on Franchise?

To begin your journey towards owning a Snap-on franchise, you will first need to complete an application process, which includes a thorough review of your financial background and business experience. Once approved, you will attend an introductory meeting where you will learn about Snap-on's operational standards, products, and training program. After this, you will undergo a comprehensive training program that equips you with the skills needed to succeed in your franchise. Following your training, you will receive your Snap-on tool truck and begin your operations, providing quality tools and service to your customers.

What Might Make a Snap-on Franchise a Good Choice?

Before deciding to invest in a Snap-on franchise, it's crucial to conduct proper research and consider your financial capabilities. The initial investment typically ranges from $150,000 to $250,000, which includes the franchise fee and the cost of the mobile tool truck. Franchisees will also need to factor in ongoing fees such as royalties and advertising contributions. However, the potential for high revenue exists due to Snap-on’s established brand reputation and a loyal customer base in the automotive repair industry. Additionally, Snap-on offers support through training and marketing, making it an attractive option for entrepreneurs passionate about tools and automotive service.

Why You May Want to Start a Snap-on Franchise?

Snap-on is a leader in the automotive tool industry, known for its high-quality products and exceptional customer service. As a franchisee, you will have the opportunity to build lasting relationships with mechanics and automotive professionals who depend on Snap-on tools for their work. If you are someone who enjoys sales, customer interaction, and has an interest in the automotive field, this franchise could be a perfect match for you. The training provided by Snap-on prepares you to operate effectively and succeed in the mobile tool business, which is essential for driving your franchise's growth.

Is Owning a Snap-on Franchise the Right Move for You?

Owning a Snap-on franchise requires a commitment to hard work and customer satisfaction. With over 4,000 franchise locations worldwide, Snap-on has established a strong presence in the market since 1920. The franchise model allows for flexibility and independence, as you operate your mobile tool business from a truck. However, it is important to assess your financial readiness and willingness to engage with customers regularly. If you have a passion for tools and a strong entrepreneurial spirit, this franchise could be the right opportunity for you to thrive in the automotive industry.

Snap-on Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

A broad sector defining similar types of franchise businesses.

Industry

Home Based Franchises
A more specific division within the broader industry.

Category

Direct Sales
Available financing options to help start the franchise.

Funding Year

1990
The main organization that owns the franchise brand.

Parent Company

Snap-on Inc.
The key individuals guiding the franchise’s strategy and growth.

Leadership

Nick Pinchuk
The official business address of the franchisor’s headquarters.

Corporate Address

2801 80th Street, Kenosha, Wisconsin 53143
The total amount required to launch the franchise.

Initial Investment

$145,800 - $481,554
The initial fee paid to join the franchise system.

Franchise Fee

$16,000
Ongoing percentage of revenue paid to the franchisor.

Royalty Fee

4.00%
Regular contribution toward the franchise’s advertising fund.

Marketing Fee

0%
The minimum liquid capital you must have on hand.

Cash Required

$25,000
The minimum total assets (minus liabilities) you must possess.

Net Worth Required

$100,000 - $200,000
The typical yearly revenue generated per franchise location.

Average Revenue

$796,468
The middle value of yearly revenue among franchise locations.

Median Revenue

$795,476
The smallest reported annual revenue among franchisees.

Lowest Revenue

$31,028
The largest reported annual revenue among franchisees.

Highest Revenue

$3,115,205
The estimated timeframe to recover your initial costs.

Breakeven Time

12 Months
The estimated period to recoup your total investment.

Investment Payback

12 Months

Snap-on Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.

The overall number of operating franchise locations.

Total Units

3378
The number of locations owned by independent franchisees.

Franchised Units

3238
The number of locations owned and run by the franchisor.

Corporate Units

140
Units 2021 2022 2023
Total Units 3421 3409 3378
Net Change YoY -12 -31
Franchised Units 3280 3270 3238
Net Change YoY -10 -32
Corporate Units 141 139 140
Net Change YoY -2 1

Company Background

Snap-on Incorporated is a leading manufacturer and marketer of tools and equipment, established in 1920. Known for its premium quality and innovation, Snap-on provides a wide range of products including hand tools, power tools, diagnostics, and shop equipment. The company operates through a franchise model, allowing franchisees to offer Snap-on’s extensive product line to automotive professionals, industrial businesses, and consumers. With a strong reputation in the marketplace, Snap-on has built a loyal customer base that values reliability and performance.

Franchise Opportunity

Becoming a Snap-on franchisee offers a unique opportunity to tap into a well-established brand with a proven business model. Franchisees benefit from a comprehensive support system, including training, marketing, and access to an extensive range of high-quality tools and equipment. This business is ideal for individuals passionate about automotive and industrial sectors, providing the potential for significant income through direct sales and service. Snap-on’s franchise program is designed to help you succeed by leveraging the brand's reputation and innovative products.

Corporate Structure

Snap-on Incorporated is headquartered in Kenosha, Wisconsin, and operates as a publicly traded company under the NYSE symbol SNA. The company is structured to support its franchise network effectively, providing operational guidance and resources to franchisees. They have various subsidiary companies focused on different market segments, including Snap-on Tools, Snap-on Industrial, and Snap-on Equipment, each tailored to meet the specific needs of their customers.

Royalties

Snap-on franchisees are required to pay a royalty fee of 6% of gross sales. Additionally, franchisees contribute to a marketing fund, typically around 2% of gross sales, which supports national advertising and promotional initiatives. These fees help maintain the brand's strength and visibility in the competitive tools and automotive markets, ultimately benefiting franchisees by driving customer traffic and sales.

Company Mission

Snap-on’s mission is to provide the best quality tools and solutions to professionals in the automotive and industrial sectors. The company is committed to innovation, ensuring its products exceed customer expectations in performance and durability. By fostering a culture of excellence and continuous improvement, Snap-on aims to empower its franchisees to succeed while enhancing the productivity of their customers through superior tools and services.

Brand Story

Snap-on's journey began in 1920 when Joseph Johnson introduced a revolutionary tool design that allowed interchangeable sockets to be used with a single handle. This innovation set the foundation for the brand’s growth and commitment to quality. Over the decades, Snap-on has expanded its product offerings and developed a reputation for excellence in craftsmanship. Today, Snap-on is synonymous with reliability and professionalism, serving millions of customers worldwide, and is a trusted partner for those who demand the best in tools and equipment.

Frequently Asked Questions

The estimated total initial investment for a Snap-on franchise ranges from approximately $217,505 to $481,554. This includes costs such as the initial license fee, inventory, van, and other startup expenses.