It may be hard to believe, but you are about a year from the expiration of your Snap-on Tools Franchise Agreement. Thank you for your help in strengthening the Snap-on brand during the course of your Franchise Agreement term. Our Snap-on Regional Franchise Manager will be contacting you to discuss your potential five-year Renewal and to answer any questions about the Snap-on Tools Renewal process. In preparation for your upcoming call, please review the following materials that demonstrate Snap-on Tools’ continued investment in innovation over the past five years. Also, please find an overview of the Renewal process.
Snap-on Continues to Invest in Innovation
Over the last 5 years, Snap-on Tools' exceeded $189M in capital expenses and these investments continue to produce growth. U.S. New Product Sales greater than $1M exceed 293 products!
Snap-on Continues to Invest in Ongoing Franchise Training
Snap-on is committed to your success. We currently offer a number of ongoing training options to help improve your business. We hope is you have participated in many of the following and found them to be useful to your business.
- Product Sales Meetings
- Annual Kickoff Meeting
- Franchise Development Training
- Business Manager reviews
- Sales Developer rides
- Snap-on Tools Franchise Conference
Snap-on Tools continues to invest in its interactive showroom fleet. Currently, our fleet consists of TechKnow, Rock 'n Roll, and Shop Essentials which showcase products to select customers.
What's Required to Renew?
Your Renewal provisions are summarized in Item 17 of your initial FDD. However, since you may not have that easily accessible, here is recap of the renewal provisions found in our current FDD.
We designed the Snap-on Renewal process to be as streamlined and transparent as possible. Our Regional Franchise Manager will answer any further questions on your call.
- You are required to provide us with written notice of your intent to renew 9 to 12 months prior to your Franchise Agreement expiration date.
- We have made this easy for you to do! Simply click on and complete the “Intent to Renew” webform embedded in the same email that brought you to our Renewal site.
- Your business must meet current new franchise standards.
- Minimum Inventory of $158,000 of suggested list price products
- Current Van Logos
- Current 20 foot van minimum
- Your business must be in compliance with all current agreements
- Satisfy all monetary obligations
- Sign general release
- An example is in the Appendix of the current FDD that you will receive at your upcoming meeting with our Snap-on Regional Franchise manager
- Comply with current qualifications and training requirements
- Renewal fee (50% of the current initial license fee)
- Currently, the Initial License Fee is $16,000 so a check for $8,000 will be required if you renew
- Have not engaged in activities that would impair relationship
- All Franchisees must be a Corporation or Legal Entity
- Consult your accountant or financial adviser for advice on setting up your corporation
- You will be required to sign then current forms of agreements, which may contain materially different terms and conditions from the contract you originally signed
First, complete your meeting with our Snap-on Regional Franchise manager and have all of your Renewal questions answered. Then the Snap-on Business Manager will contact you to schedule a review your current Franchise business and share opportunities for growth. Here are some suggestions to maximize your Business Manager Business contact:
- Review the current state of your business
- Do you have a current inventory?
- Have you reviewed your current business metrics?
- Be prepared to share your five-year plan
- Do you plan on same store growth?
- Do you aspire to expand?
- Do you plan to retire prior to the next renewal term?
- Are you hoping to transfer your franchise assets upon leaving your Snap-on Franchise business?
At your Business Contact, the Business Manager will schedule a survey of your route to occur 90 days from the expiration of your current agreement. Then a member of our Snap-on Regional Team will meet with you 6 months prior to the expiration date of your Franchise Agreement to recap the renewal process and confirm your business meets new franchise standards. After your survey is completed and you have been offered a Renewal Franchise your Business Manager will schedule your signing date.
Are you ready to make the next five years your best five years!