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 Regional Franchise Manager to make sure you have all of your questions answered. During your meeting, you will review a sample Franchise Asset Purchase Agreements, other associated documents, and the current Snap-on Tools Franchise Disclosure Document.
Source of Buyers
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:
- Current Snap-on Tools Franchise business owners looking to purchase an Additional Franchise
- Employees of a current Snap-on Tools Franchisee looking to purchase the franchise they worked in from their employer
- Business Brokers
What is Really Being Transferred?
The "Seller" and "Buyer" create and enter a purchase agreement between themselves, which is for the assets of the Seller's business only. The purchase agreement may also include goodwill.
What is not Transferred?
The "Seller" is not transferring the "Franchise" itself or the Franchise Agreement. If Snap-on approves the transfer, the "Buyer" will then enter into a new Franchise Agreement with Snap-on, which will run for a new term of 10 years. The "Buyer" will be able to use approved assets in the operation that new Snap-on Tools Franchise. Our Snap-on Regional Franchise Manager 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, jeopardize 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.
Next Steps & Timing of Transfer
During the first thirty days of that review, Snap-on may notify the Seller that it is exercising its right of first refusal. Snap-on has 60 days from receiving the completed paperwork listed below to review the terms and the "Buyer" and either approve or deny the transfer:
The Buyer's business plan including the terms of financing and projected financial pro forma.
The purchase agreement. This is a bona-fide and binding agreement between the Seller and Buyer - and signed by the Seller and Buyer - containing the full details of the proposed transfer.
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 Credit
- Your Bank
- SBA Financing
- Cash payment
Snap-on Credit LLC
Our affiliate Snap-on Credit 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 Credit financing. Snap-on Credit requires a priority first security interest on all the business assets.
Snap-on Credit 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 Credit will require a higher down payment. Snap-on Credit 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 Credit for any RA accounts to be financed.
Final Asset Valuation
Prior to the scheduled transfer date the "Seller" will shut down the business for asset valuation. The "Seller" and "Buyer" will inventory and agree on value of all physical assets. A Snap-on Tools Franchise Performance Team member will witness the inventory to assure our minimum inventory requirements are met.
The "Seller" and "Buyer" will verify the RA balances that will be transferred and established the terms of the transfer.
Any final adjustments in valuations will be made and submitted on Schedule 2, and then the parties will move forward to signing.
Recommendation & Acknowledgement
Snap-on recommends that for the protection of both the "Seller" and the "Buyer", each have a lawyer 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 Regional Franchise Manager if you have any questions prior to your scheduled meeting.