Matco Tools Franchise Cost and Information

Franchise: Matco Tools

Franchising Since: 1993

Headquarters: Stow, Ohio

Number of Units: 1,579

About the Franchise

Matco Tools is the fastest growing, automotive tool franchise providing professional tools, equipment and storage for technicians that work in independent repair shops, dealerships, small engine repair, farm and industrial service, marine, motorsports and even aviation.


With over 60 years of national brand experience, Matco provides franchisees with the tools to build their future while they provide the highest quality professional tools and service that technicians trust. From financing start up, to delivering quality products and outstanding customer service, Matco is committed to enabling every franchisee to realize the dream of successful business ownership.

One of the top home based franchises, there are nearly 1,500 Matco franchisees who bring these products to their customers in trucks, with locations in all 50 states, as well as Puerto Rico and Canada.

Financial Assistance

Matco offers a number of financing programs to its distributors. This includes financing on the initial inventory and financing of time payment reserve account deposit, as well as financing for open account product purchases.

Term of Agreement and Renewal

The initial franchise term is for a length of 10 years, with an option to renew for a period of 10 years if requirements are met. 

Breakdown of Costs

The following information is compiled from the Franchise Disclosure Document of Matco Tools (2015). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Matco Tools franchise.

Initial Franchise Fee: $5,000

The Initial Fee is fully earned and non-refundable when you sign the Distributorship Agreement. However, Matco will refund the Initial Fee paid if you elect to terminate the Distributorship Agreement within 6 months after signing, as Described in Item 5. 

Initial Inventory: $60,000 to $80,000

If you qualify, Matco Tools may finance up to $80,000 of your initial investment with no down payment, which will consist of up to $75,000 in financing which must be applied towards your Distributor Starter Inventory and up to $5,000 in financing which must be applied towards the initial franchise fee. 

Acquisition and Establishment of Time Payment Reserve Accounts: $18,000 (or Time Payment Line of Credit: $4,700 to $9,325)

If your initial investment is not financed by Matco Tools, you will be required to deposit $18,000 in a Time Payment Reserve account.

Mobile Store — three months lease payments: $4,450 to $113,000

The Mobile Store is the required vehicle, or truck, that you will use to visit customers, stock inventory, and sell products. 

Computer Hardware: $2,600 to $2,900

You are required to purchase or lease a new Dell Latitude model E5540 personal computer (laptop), Matco-specified barcode reading and label printing equipment, Signature Pad, and Matco-specified credit card swipe device. 

Computer Software and Internet Service — three months payments: $1,744 to $2,295

You must sign the Software License Agreement and pay the specified initial software license fee for the MDBS Software which is currently $799, and a $100 license fee for the credit card processing software and $45 license fee for the Signature Pad software, as well as the specified annual fee of $425 for the Systems Maintenance Support upon the second month of the Software License Agreement.

Insurance — three months premiums: $915 to $2,500

You must purchase comprehensive general liability insurance, including products liability coverage, Inland Marine, and vehicle liability insurance coverages, with minimum limits of each policy of at least $2,000,000 and a maximum deductible of $1,000. 

Travel, Lodging and Meal Expenses: $170 to $2,515

Matco will provide the franchisee with at least 70 hours of mandatory initial classroom training at Matco’s corporate offices in Stow, Ohio, or at such other location as may be designated by Matco. The franchisee and operator must successfully complete the Training Program before operating the Distributorship.

Professional Services: $150 to $2,000

Fixtures, Supplies, Licenses: $500 to $3,000

The costs for initial fixtures, supplies, and licenses will vary by the specific requirements of each Distributor and the requirements of the local laws in which business will be conducted. Supplies include items such as work uniforms, business forms, stationery, business cards, catalogs, promotional literature, and sales materials.

Additional Funds — three months: $5,000 to $13,500

he estimated additional funds will help finance business expenses (e.g. Mobile Store operating expenses, freight (including packaging and shipping warranty and overstock items to Matco as well as shipping for certain items from Matco), loan payments, cell phone, and bad debt on receivables) during start-up and during periods in which collections from customers are not adequate.

ESTIMATED TOTAL: $85,229 to $247,710

These figures are estimates in setting up a Matco Tools franchise and operating it for three months. It is possible to exceed costs in any of the areas above.