We value our franchisees and provide you with a Franchise Disclosure Document to help you determine what your initial investment and operating costs may be. However, you will find the Snap-on Tools franchise has the following:
- Low initial license fee
- Low monthly fee
- No advertising fee
- No initial training fee
An added benefit of operating from your mobile store is that you typically avoid the real estate expenses of most fixed-site franchises. In addition, as an owner-operator you won't have any employee expenses until you choose to hire an employee to grow your business. There are many benefits to owning and operating your "Showroom on wheels!"
Depending on how you pay for various parts of the business, including whether you buy or lease your mobile store, your start-up out-of-pocket expense can vary.
Out-of-pocket start-up expenses for a franchise when using Snap-on financing:
- Range from $44,121 - $64,636
- Includes $13,529 - $24,881 working capital
The estimated total investment range is from $201,433 - $465,436.
Snap-on Tools will provide you with a Franchise Disclosure Document (FDD) that includes more detail on the estimated initial investment and other fees.
Every potential business owner should answer the question "How much money will I make?" before investing in a business. We believe our "Discovery" process gives you the information you will need to draw your own conclusion. Part of your Discovery of the Snap-on Tools franchise is to determine if it is a good fit for you. Your Discovery includes a franchisee "Ride Along" where you will witness a Snap-on Tools franchisee operating their Snap-on franchise business. As a potential Snap-on Tools franchise candidate, you will quickly realize that this is a customer relationship business and your ability to develop successful business relationships and operate the Snap-on Tools program are key components to your level of success. No two franchise owners personalities are the same, nor are their expenses. Therefore, we feel it is appropriate for you as a potential franchise owner to determine what your sales, expense and income may be.
Prior to the "Ride Along", you will be guided by a Snap-on Franchise Manager on an interactive online tour of our franchise opportunity, part of which includes receiving a copy of our Franchise Disclosure Document (FDD). We recommend you carefully review the entire FDD with your financial advisor and legal counsel including Item 19, which is our Financial Performance Representation, Item 7 and Item 6, which disclose our estimated initial investment and other fees to assist you in determining your potential.
Starting a small business isn’t easy, but Snap-on can help. For many of our franchisees, securing financing is an important part of the process. We are one of the few franchising companies that offers in-house financing. You may qualify to finance your business through our affiliate, Snap-on Credit, which has financing programs that could meet your initial needs.
There are a variety of potential financing sources. A few are:
- Snap-on Credit
- Your bank
- SBA Financing
- Cash Payment
Snap-on recommends that you speak with your financial, tax and/or legal advisor to determine your financing options.
At Snap-on, we value the hard work and sacrifice of our veterans and believe the skills built in the military can translate to owning a franchise. That's why we offer veterans a $20,000 on their initial tool inventory. If you choose to finance your franchise through our affiliate Snap-on Credit, they may consider your veterans discount equity and reduce the down payment for your franchise finance loan.
We are proud to be ranked the #1 Franchise for Veterans in Entrepreneur 2020 and are especially proud of our veteran franchisees!
In addition, Snap-on is a proud member and sponsor of VetFran, an International Franchise Association initiative to support veterans interested in franchise ownership and careers in franchising. Snap-on is proud of its time-honored tradition of saluting our military.
Many veterans have the discipline and drive needed for the Snap-on Tools franchise model.
-- Tom Kasbohm, Director of Franchising, Snap-on Tools