Which path is right for you? Independent vs. franchisee tool truck businesses

So, you want to go into business as a mobile tool dealer. What franchise do you go with? Maybe you should just be an independent tool dealer. Independent or franchisee? Let go over some pros and cons on what would be best for you.
#tooltruck #autorepair #tools
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[@CoyleTools]

All good points, Mark. Excellent vid!

[@midatlantictools]

Thank you..

[@nickhowser7262]

My MAC guy is also an independent dealer. He is a MAC truck but he also has Marty’s Tools on the side. Half his truck is MAC tools and the other half is Milwaukee, Astro, Lisle, Ect.

[@midatlantictools]

I'm sure MAC Corp. does not like that.. Thanks for watching

[@craigjorgensen4637]

If he doesn’t buy enough Mac product, they can and will dump him and for good reason!

[@nickhowser7262]

@@midatlantictools he’s been doing it for over 10 years now so they don’t seam to have a problem with it.

[@nickhowser7262]

@@craigjorgensen4637 he’s been doing it for over 10 years so I doubt they will dump him because he’s one of the best dealers around my area.

[@craigjorgensen4637]

@@nickhowser7262 Hey, if he is a high volume Mac Dealer who pays his bills on time who knows what they will put up with?

[@stevemclaughlin8666]

I believe Cornwell is the best of both worlds. Being a Cornwell franchise we have a territory, not stops. No franchise fees, and if we need/want to purchase outside of Cornwell we have that option (I tend to only get items that are not available from Cornwell). When a Cornwell district manager surveys a territory for a new dealer you are not stuck with just those stops. If you feel the need to add stops or cancel a stop, that is your choice, as long as its in your territory.

[@midatlantictools]

I looked into Cornwell but in the end, they are still a franchise with some rules. Thanks for watching and feedback on a Cornwell franchise.

[@stevemclaughlin8666]

Totally respect that. I've had a great experience so far. Six years in.

[@jamesschrader1244]

I'm in western NY, not that far from Ohio and I am very surprised. Cornwell has never grabbed hold here. Last one I saw was 10 years ago. Snap-On seems to always be the tops. People may complain of the pricing but they buy. Matco second with many open routes and MAC who has more open routes than filled. They really struggle. CW non-existent around here. Glad you are doing well Steve. Plenty of room for multiple vendors.

[@johnnyramirez9082]

Solid information, I know what franchise I’m going with in the future. I was an assistant to a Snap on franchisee and I have a grasp at what I’m getting into and I will explore my three different possibilities in companies. I don’t like the heavy politics of one of them but they do have a great Recipe for success

[@midatlantictools]

If you were an assistant on a truck you could be an Indy. You already know some of the in and out of the business. Good luck with whatever you go with

[@johnnyramirez9082]

@@midatlantictools thank you just building up my working capitol to make it though these tuff times

[@fester1957]

I believe I could do the independent route because I have worked as a mechanic and have 14 years experience in parts. It's just a matter of doing it

[@midatlantictools]

I think being a mechanic can help.

[@ducaduke]

Independent all the way. Plenty of great brands with awesome prices !

[@ben10mama]

Would you be willing to make a video talking and the numbers? Like what's the general profit margin you look for? What costs do you have to deal with? How much money do you hold in reserve to loan out for your truck account, etc That would be awesome even though it might be a bit dry I'm working on a business plan and I'm trying to really make sure my numbers and estimates make sense and I can really have a good grip on what I'm getting myself into

[@midatlantictools]

If you go with a franchisee they will tell you all that info. I might try to make a video on what you are asking for, for the independent guys. I think Coyle Tools did a video on what you are asking for. Thanks for watching.

[@jamesschrader1244]

Terms is a big help. Your franchise will offer 8, 12, 16 week terms. Your no name tool supplier may be COD or be nice and give 30 day terms. You may pay less for the tools but you have to pay up much faster with less leeway when you fall behind.

[@midatlantictools]

Independents will give the same weekly payments as a franchise if not better from what I have seen. Thanks for watching

[@a1toolsupplies12]

That was not the Snappy that I knew!

[@EzTechJoe]

Great video man. Helped me out alot

[@midatlantictools]

Glad it helped. thanks for watching

[@dodgesportsman772]

I really want a tool truck but so many dealers say... It's a good living but I don't make the same money I did as a mechanic....

[@midatlantictools]

Really? I was a Tech for 13 years and made good money. Almost 20 years selling tools and I can say I'm doing OK. FYI First year in business my wife stopped working.

[@dodgesportsman772]

@@midatlantictools hmmm.... We may need to talk soon

[@cmancini26]

Awesome information about the business. Currently running my truck for one of the flags but want to go independent

[@midatlantictools]

Indy was one of the best thing I have ever done other then getting into the business. Just cover all your bases when you get out. Your Flag may not be happy with you. Hope you start making videos always like seeing what other dealer are doing and their thought..

[@cmancini26]

@@midatlantictools sent you a pm on Facebook

[@midatlantictools]

will can you when I get a chance

[@jeffmaitland7030]

Would need more info as to how long you have been in business, how your business is doing, your competition, etc. But, I went independent 4 years ago after 24 years of franchise. Best move I ever made by far. Only wish I had done it 10 yrs earlier. Just didn't have the balls at the time.

[@cmancini26]

@@jeffmaitland7030 just about a year

[@branned]

Well done!👌👌

[@midatlantictools]

Thank you! 😃

[@andrewkarppinen4348]

Great content.

[@midatlantictools]

Thanks for watching..!

[@ABVDrinker]

Nice video!

[@midatlantictools]

Thanks!

[@fernandomarcano4908]

Are these companies (Milwaukee, DeWalt, etc) offer credit line to independent seller? Also, how you approach them to buy tools?

[@midatlantictools]

Most tool come from a warehouse distributors.

[@redneckgearheadgarage495]

I have Gear wrench sockets. Theyre junk, the fastener has to be driven out nearly every time.

[@midatlantictools]

Good thing there are other of sockets on the market you can buy.

[@redline7355]

Who were you with before you went independent?

[@midatlantictools]

They don't like me I don't like them. My mom alway said "If you don't have nothing nice to say about someone don't say nothing at all". I'm going to follow my mom advice.

[@djwambach6192]

80% or more of thing on a franchise truck is made by someone else and put a sticker on the box.

[@midatlantictools]

sounds about right

[@WBOS72]

I priced a Snap on Franchise, depending on a few things you need $197,000-$400,000 down, plus either a line of credit or cadh in the bank for start up. Matco will finance 100% but want you to have $40,000 in the bank or a line of credit. This is Canadian dollars. Would you let someone ride along with you to get a feel for the independant business? Great video.

[@midatlantictools]

I never really thought about it.. When I was with a franchise I always had people ride with me from guys looking to get in to managers.

[@craigjorgensen4637]

As an independent your customers can buy the same tools as you can for the same price!

[@midatlantictools]

As any business. Anyone can buy anything if you know where to look or go. Nothing new. Thanks for watching.

[@craigjorgensen4637]

@@midatlantictools Well, my point was that as a franchised dealer at least you would have an exclusive on a lot of the products that they manufacture.

[@midatlantictools]

@craigjorgensen4637 Yes, there are some, but coming from a flag truck, it is not a large factor.

[@MrJimmy3459]

@@craigjorgensen4637 Maybe 20 years ago yes, now NO Ebay is FULL of new and used Snap-on, Matco, Mac tools

[@fester1957]

Check out Techs Choice in Nashville

[@midatlantictools]

no need to.. I'm friends with Matt.. but thanks anyway..!

[@tractorbob58]

I was a cornwell dealer they we’re horrible and tools weee jun There was no training the DM was a jerk

[@midatlantictools]

I'm sure they told you, your franchisee was like family.. Are you still a tool dealer? Thanks for watching...

[@stevemclaughlin8666]

Cornwell has no franchise fee's.

[@midatlantictools]

There was other flag like that at one time but as they grew things change.