Your discovery begins with a self-guided tour designed to be the first step of the Snap-on Tools Franchise transfer process. The intent of this site is to provide preliminary information for the Snap-on Tools Franchise business owner (Seller) wishing to sell his assets and for the Snap-on Tools Franchise candidate (Buyer) interested in purchasing the Sellers assets to potentially operate a Snap-on Tools Franchise. If you both agree that there is more to explore, then you will meet with our Snap-on Tools Representative to make sure you have all of your questions answered.
Many avenues connect Sellers and Buyers to consider the Snap-on Tools Transfer process. For example, the Snap-on Tools mobile store has always attracted attention of potential Buyers. However, potential Buyers hear about Snap-on Tools Franchise businesses that are available for transfer in numerous ways.
Here are a few of the most common:
The "Seller" and "Buyer" create and enter a purchase agreement between themselves, which is for some of the assets of the Seller's business only. The purchase agreement may also include goodwill.
Snap-on's intent to provide as similar a List of Calls as possible. If Snap-on approves the transfer, the "Buyer" will then enter into a new Franchise Agreement with Snap-on. The "Buyer" will be able to use approved assets in the operation of their new Snap-on Tools Franchise. Our Snap-on Representative will provide the Buyer with our current Franchise Disclosure Document at your upcoming meeting.
Snap-on will review the transaction and determine if it will exercise its right of first refusal within 30 days of submittal. If exercised, Snap-on will purchase the franchise business on the same terms as the proposed Buyer. Snap-on will not unreasonably withhold a consent to transfer, provided the conditions set forth in the Seller's franchise agreement are met.
Snap-on does not dictate or help negotiate the purchase price. However, the terms of the sale, including the price, shall not, in Snap-on's good faith judgement, jeopardise the ability of the Buyer to maintain, operate and promote the franchise and meet the financial obligations to Snap-on, third party suppliers and business creditors.
If you require financing to facilitate your transfer then we recommend you speak with your financial, tax and/or legal advisor to determine your financing options.
You may finance from any source, such as:
Snap-on Finance may provide financing for the Buyer using the same general criteria for approval as for other new franchisees entering the system. Any goodwill involved in the transaction will not qualify for Snap-on financing. Snap-on Finance requires a priority first security interest on all the business assets.
Snap-on Finance may provide increased levels of financing above those disclosed in the Franchise Disclosure Documents. If financing significant assets greater than the standard amounts, it is likely that Snap-on Finance will require a higher down payment. Snap-on Finance requires the buyer to submit a current copy of the Seller's revolving account report at time of credit application.
Buyer will submit the Seller's RA audit & RA Customer histories to Snap-on Finance for any RA accounts to be financed, as per the Snap-on Tools Operations Manual.
RA Account Section
Snap-on recommends that for the protection of both the "Seller" and the "Buyer", each have a solicitor to represent them and help in drafting a purchase agreement that specifies each of their respective rights and obligations.
Snap-on will not review the transaction for legal sufficiency and both the "Seller" and the "Buyer" may need any number of provisions to protect their interests. Snap-on's approval, disapproval, or decision to exercise right of first refusal will be issued to each party in writing.
Feel free to reach out to our Snap-on Representative if you have any questions prior to your scheduled meeting.
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