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Matco Tools

Automotive · FDD 2025 (MN)
Health Score
62
mobile_distributorship_not_traditional_franchisemandatory_inventory_purchasessystem_slightly_shrinkingno_royalty_revenue_model_unusual
Investment Range
$108K–$383K
Franchise Fee
$7,000–$10,000
Royalty
$0/unit
No royalty fee. Matco Tools is a distributorship model — distributors purchase products from Matco at distributor pricing and resell from mobile truck/van at retail prices. Revenue to Matco comes from mandatory product purchases, not a percentage of distributor sales.
Total Units
1,829
-1.2% growth

Initial Investment Breakdown

Category Low High
Initial Franchise Fee (IFF) $7,000 $10,000
Initial Mandatory Inventory $55,500 $92,000
Mobile Sales Unit (Truck/Van — Lease Deposit + Payments) $20,000 $230,000
Software License Fee $899 $899
Web Page Setup Fee $195 $195
Document Processing Fee $99 $99
Insurance (3 months prepaid) $768 $3,591
Additional Funds (3 months working capital) $23,618 $45,982
Total $108,079 $382,766

Financial Performance (Item 19)

Avg Revenue
$519K
Median Revenue
$488K
Sample Size
1,545
Above Average
43.1%

Reporting period: 2024-01-01 to 2024-12-31

Unit Growth

Year Total Units Opened Closed
2022 1,815
2023 1,852
2024 1,829

Other Ongoing Fees

Fee Amount Frequency
Initial Mandatory Inventory Purchase $$55,500–$92,000 (mandatory at signing) one-time
Ongoing Inventory Purchases (mandatory weekly) $Weekly purchase orders at Matco distributor pricing (variable) weekly
Annual Software Maintenance Fee $$450/year annually
Web Page Fee $$195/year annually
Insurance (Commercial Auto + General Liability) $$256–$1,197/month monthly
Successor Distributorship Fee (transfer equivalent) $50% of then-current Initial Franchise Fee (currently ~$5,000) upon transfer

Quick Facts

Franchised
1,811
Company-Owned
18

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Seriously considering Matco Tools?

A franchise consultant can verify the Item 19 numbers with real franchisee contacts, flag territory conflicts, and walk you through the FDD before you sign. Their fee is paid by the franchisor — your consultation is free.

Source: FDD filed in MN, 2025. Extracted 2026-04-05.

Frequently Asked Questions

Is Matco Tools a franchise?
Yes, Matco Tools is a franchise with 1,829 locations worldwide. Prospective owners purchase the right to operate under the Matco Tools brand and system by signing a franchise agreement and paying a franchise fee. The full terms are disclosed in the Franchise Disclosure Document (FDD).
How much does it cost to open a Matco Tools franchise?
The total initial investment for a Matco Tools franchise ranges from $108K to $383K, according to the 2025 FDD. This includes the franchise fee, build-out, equipment, and initial working capital.
How much do Matco Tools franchise owners make?
According to the 2025 FDD Item 19, the median annual gross revenue for a Matco Tools franchise is $488K (based on 1,545 units). Note that gross revenue is not profit — operating costs, royalties, rent, and labor must be subtracted.
How many Matco Tools franchise locations are there?
As of the 2025 FDD, Matco Tools has 1,829 total units (-1.2% growth rate).