Small businesses are among those hardest hit by the economic downturn. Many have had to close altogether or significantly scale back their operations. Still, the future looks bright for tool sales as more homeowners tackle home improvement projects to save money on repairs and maintenance. Suppose you want to get started in tool sales or learn more about tools, tool sales, and tool franchise opportunities; it’s worth going with the best in the market today. Cornwell Tools is one of the best tool franchises, along with the following top-ranking tool distribution franchises.
How Tool Distribution Franchises Work
Tool distribution is a growing industry. The National Tool and Equipment Association reported that sales increased 6 percent in 2018 compared to 2017. The same report states that demand for tools continues to grow, which means there’s an excellent opportunity for tool distribution.
When most people think of a tool distribution franchise, tools like wrenches and screwdrivers come to mind. However, several different tools and accessories can be challenging for the average person to find in hardware or equipment stores. Tool distributors sometimes work with companies to source equipment that is too large or impractical for personal ownership.
Tool distribution franchises can be a great way to develop new revenue streams, increase customer loyalty and attract new customers. Thankfully, there are already franchises with tested and proven business models in the market today, as listed below;
- Matco Distributors
First on this list of best tool distribution franchises is Matco Distributors. Headquartered in Stow, Ohio, the company has been in business since 1946 and distributes various electrical and plumbing supplies, automotive parts, janitorial equipment, fasteners, and hardware.
Matco Distributors offers its franchisees many benefits, such as flexible working hours so that you can have a personal life and spend time with family and friends. Also, the company offers excellent training programs to help you succeed as quickly as possible. The initial investment ranges from $15,000 to $115,000, depending on a franchisee’s specific situation.
- Snap-on Tools
With over 100 years of experience in the tool industry, the company offers a unique mobile franchise opportunity with plenty of room for growth. Snap-on Tools provides mechanics with professional tools and diagnostic and repair information. Technicians use the tools at auto dealerships and independent repair shops.
To become a Snap-On Tools franchisee, you must have a minimum net worth of $50,000. Its startup costs typically range from $185,000 to $189,500. The investment covers the first six months of your cart inventory and an initial training program that lasts ten days.
- FastTool Repair
This franchise has been in business since 1984 and currently has over 150 locations. FastTool Repair is a do-it-yourself tool repair service. The company offers you the opportunity to do repairs at your customers’ homes, saving up to 50% on the cost of replacement procedures. A FastTool Repair franchisee can operate their business either in a retail shop or at home but must have access to a locked garage where they can keep the tools.
On the company’s website, you’ll find little information about what sets the company apart in terms of its services or the quality of its tools. But if you are interested in starting your tool repair service, this can be a good starting point for further research. The franchise fee is $40,000 with an anticipated total investment of $100,000.
- Cornwell Quality Tools
Cornwell Quality Tools is a tool manufacturer and distributor that has been in business since 1919. Cornwell sells its tools to technicians in the automotive, aerospace, trucking, fleet, industrial, construction, and marine industries.
The company offers its franchisees great support and a retail-like atmosphere where end-users can try products before buying them. Franchisees provide training on how to operate the equipment. The company has locations throughout the U.S., so you can open a new territory or expand an existing territory by purchasing an existing franchise. You need at least $20,000 in cash and a net worth of $40,000 to purchase a Cornwell Quality Tools franchise.
The right franchise is not everything, but it is an essential factor in the success of any business. But as good as franchise opportunities may be, they are not perfect; this presents some challenges for potential franchisees. You should not neglect due diligence. You will have better insight into a worthwhile franchise with proper planning and research. Following that, you can confidently settle on an ideal brand to avoid unexpected costs associated with investing in an unproven brand.