Franchise Fact: The industry is growing strong with auto-tech jobs set to increase 17% by 2020, increasing the need for tools and tool distributors.

Franchise Startup Cost

It is common for there to be confusion between out of pocket cost vs total investment cost for a franchise.

Start Costs are considered out of pocket costs, or the amount of money you will need upfront to get started with a franchise. This amount can vary in relationship to your personal budget needs, amount financed, and equipment needs.

Total investment cost includes money out of pocket and loans to finance your initial franchise investment. Your total investment differs from start-up costs, which are required for you to launch your business.

A comparison can be made between buying a home and starting a business. An initial down payment on the home (start cost) will get you moved in, and the mortgage (total investment cost) are required to continue living there.

Matco Tools Total Franchise Costs*:

Initial Franchise Fee $8,000
Initial Inventory $50,000 - $84,000
Acquisition and Establishment of Time Payment Reserve or Time Payment Line of Credit $22,000 or $4,700 - $9,325
Mobile Store Lease $2,784 - $160,000
Computer Hardware $2,700 - $3,400
Computer Software and Internet Service - 3 months' payments $2,050 - 2,825
Insurance - 3 months' premiums $620 - $3,573
Travel, Lodging and Meals (for training) $170 - $2,515
Professional Services (accountant, legal help for you) $295 - $5,320
Fixtures, Supplies, Licenses $500 - $4,000
Additional Funds - 3 months' living expenses (reserve) $5,000 - $13,500
Total $76,819 - $309,133

Matco cannot give any specific numbers because of the variables and the franchise disclosure laws don't allow us to give any specific income numbers.

*Cost per Matco Tools 2022 FDD issued March 6, 2022.


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