Matco tools takes distributors' money, allows them to fail, only to sign (churn) another and start the scam over. Failure rate: 36% Tool manufacturer and distributor Matco is the riskiest investment on the top-10 "most popular" list, with more than one third of its SBA-backed loans going bad. Yet Matco Tools also has its defenders. Failed & failing Matco Tools mobile distributors claim that they are victims of a callous and unethical investment scheme that sets them up for failure.

Matco Tools posted a recruiting video on You Tube and referenced a US Dept of Commerce study stating franchises had a 91% success rate that DID NOT EXIST. The comment section below is for Matco Tools and its supporters to share their opposing views, and show their support for the Matco Tools franchise opportunity.

When you sign the Distributorship Agreement, you must pay Matco an initial franchise fee of $7,000 (the “Initial Franchise Fee”). Besides this initiative, you will be working hand in hand, 80 hours a week and weekends with your distributors to keep them in business. The failure rate represents the number of loans in liquidation or charged off, divided by the number of loans disbursed.” The Matco Tools was deemed the riskiest franchise with a 36% franchise loan default rate. The Initial Franchise Fee for a new “225 Distributor” will be $4,600. Due to poor performance in concerns to selling additional franchises and franchisee failure rate over the past 3-4 years, there is a large initiative to do what ever it takes to slice up routes and to sell additional franchises at whatever cost.

1. Cold Stone Creamery franchise was listed as 2nd worst with a 31% failure rate.

Matco Tools promises distributors customers and support and delivers neither. Initial Franchise Fee for New Distributors: $4,600 to $7,000.