Top 250 Franchise by Entrepreneur – Rank no.26 – Snap-on Tools – US
Products & Services: Professional tools & equipment
Number of Locations: 4,780
Total Investment: $143.67K – 307.7K
Began Franchising: 1991
About Snap-on Tools
In 1920, a particular wrench could only do one particular job, but Joseph Johnson had an idea to change that. Along with William Seidemann, he began manufacturing ten different sockets that would “snap on” to five interchangeable wrench handles, so that one tool could do the work of five. The Snap-on Wrench Company’s representatives sold these new products by taking them to the customers at their places of business and demonstrating their use.
Today, Snap-on Tools franchisees sell far more than just wrenches. They offer over 22,000 products, including hand tools, power tools, diagnostic tools, tool storage and shop equipment, but the way they sell is much the same. Once a week they bring their “mobile stores”–trucks filled with their products–directly to their customers, which include car dealerships, mechanics, marinas and airports.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $7,500 – $15,000
Ongoing Royalty Fee: $107/mo.
Term of Franchise Agreement: 10 years, renewable
Net Worth: $30,000
Liquid Cash Available: $30,095 – $79,265
Franchise can be run from home. 8% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).
|FINANCING TYPE||IN-HOUSE||THIRD PARTY|
How This Franchise Supports Franchisees
Franchise Ranking History
|Traded as||NYSE: SNA
S&P 500 Component
|Key people||Nicholas T. Pinchuk, President & CEO|
|Products||Professional hand tools|
Snap-on is a leading US designer, manufacturer and marketer of high-end tools and equipment to professional tool users. It was founded in 1920. Snap-on is located in Kenosha, Wisconsin, and employs approximately 11,500 people worldwide. The company is currently worth US$ 2.4 billion and is included in the S&P 500.
Joseph Johnson and William Seidemann formed the Snap-on Wrench Company in 1920. The Company’s first (and major) plant is located in Johnson City, Tennessee. The company manufactured and marketed ten sockets that would “snap on” to five interchangeable handles.
To sell the products, Johnson and Seidemann worked with Stanton Palmer, who took the tools directly to customers at their places of business and demonstrated their use. Palmer enlisted Newton Tarble to share the increasing workload.
Snap-on entered global markets in 1931. Also in the 1930s, Snap-on began offering credit to customers. In the 1950s, Snap-on expanded on the concept of bringing product to the customer by using fully stocked walk-in vans and, as a result, pioneered today’s familiar franchisee van channel.
Electronic diagnostic tools
Snap-on also produces hand-held electronic diagnostic tools for the on-board computer systems used in most modern cars and heavy-duty vehicles, as well as automotive emissions control diagnostics equipment (DGA/PGA-500/CSM-5000).
Snap-on diagnostic products are being sold in Europe and Brazil under the name Sun.
In 1999 it acquired Bahco, a Swedish hand tool brand. Bahco hand tools are designed and manufactured by SNA Europe, the European manufacturing subsidiary of Snap-on Incorporated.
Nearly 20 years ago, Snap-on began an association with two time NHRA world champion Cruz Pedregon. In 2004, Snap-on began an association with Cruz’s brother Tony Pedregon, a two time champion himself.