Matco Tools
Fortive Corp.
Company Information
4403 Allen Road Stow, OH 44224
Matco Tools Corporation is a Delaware corporation, incorporated on January 12, 1993, with its principal office at 4403 Allen Road, Stow, Ohio 44224. Matco is a wholly-owned subsidiary of Fortive Corporation, which was a wholly owned subsidiary of Danaher Corporation until July 2, 2016. Fortive is a Delaware corporation, incorporated on November 11, 2015, with its principal place of business at 6920 Seaway Blvd., Everett, WA 98203. Danaher is a Delaware corporation, with its principal place of business at 2200 Pennsylvania Avenue NW, Suite 800W, Washington, DC 20037-1701.
Matco is a manufacturer and distributor of professional quality tools, tool boxes, and service equipment. Matco has developed a distinctive business system (the “System”) relating to the establishment and operation of Matco mobile Distributorships which sell tools, tool boxes, service equipment, automotive diagnostic services, software subscriptions, and other goods and services, including, for example, apparel, model cars and other collectible items, and consumables (such as mechanic’s hand soaps), and such other items that Matco may in its sole discretion offer (collectively, the “Products”). Matco mobile Distributors offer and sell Products to professional mechanics, technicians, service professionals, and other businesses which operate from a single location and purchase tools for their own use. The Products currently consist of more than 15,800 items, many of which are manufactured by or for Matco, and are distributed by Matco and sold to our Distributor network. The System is identified by means of certain trade names, service marks, trademarks, logos and emblems, including the marks “MATCO®” and “MATCO® TOOLS” (the “Marks”). Matco also sells the Products through commercial sales representatives to businesses and educational institutions including students, schools, commercial and industrial accounts with central purchasing operations, multiple locations, state, local and federal agencies and/or to other commercial customers who generally purchase tools for their own internal use or supply tools to their employees through tuition-based kits, new apprentice programs, hiring/longevity incentives, tool cribs or other means. Matco’s commercial sales group also sells Matco Products through foreign-based wholesale distributors in countries outside of North America. In 2018, these sales accounted for approximately 4.1% of Matco’s revenues. Matco may also employ persons or utilize independent manufacturers’ representatives and specialized resellers to make sales calls and to support customers in specific market segments. Matco also uses export distributors and agents to promote its products in locations outside of the United States.
5 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
7/10
Earning Transparency
7/10
Investment Accessibility
7/10
Summary of potential earnings
$476,198 / unit
Average Revenue During 2022Retail Stores
Franchise System Development
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Distribution of Matco Tools Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $10,000 Maximum: $10,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $107,476 Maximum: $340,059
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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