Snap-on Tools began long ago in 1920 when Joseph Johnson was searching for different sized wrenches. He and his friend, William Seidemann, developed some socket wrenches that could "snap on" to interchangeable handles, thereby creating multiple tools in one. Company representatives sold this new hardware product door to door by taking Snap-on wrenches to customers in their homes and at their places of business and performing demonstrations. In 1991, Snap-on Tools began franchising and today they boast an item distinct over 19,000 products which includes power tools, hand tools, diagnostic tools, and storage/workshop equipment.
Snap-on franchisees operate by having a heavy duty truck scanner. That is, they drive trucks laden up with tools ready to be demonstrated and sold directly with their customers. Snap-on is a small business to consumer franchise as well as business to business, with many clients being mechanics, car dealerships, airports, and other maintenance workplaces. In 2009, there have been a reported 3078 US based franchise units and nearly 350 more in Canada and over 850 on foreign soil. They are currently seeking additional franchisees worldwide.
Since a Snap-on Tools business is come to an end of a truck, it lends itself well to being fully a home based franchise. It generally does not require employees and absentee ownership is not allowed. The franchise fee varies by location from $5,000 to $15,000 and there's an ongoing royalty fee of $102 per month. The sum total startup investment ranges greatly because of the cost of the mobile vehicle used and the price of the inventory. The estimate is from $17,619 to around $281,959. The parent company does provide assistance in the form financing. Experience in the specific industry is not required although previous sales experience is invaluable. Snap-on requires the absolute minimum net worth of $30,000 for the newest franchisee.
There is a thorough training program of 3 weeks provided at the franchisee's location and additional training available at regional locations. There is also ongoing support in the form of newsletters, phone, and internet support. Franchisees also benefit from brand and name recognition, which is always helpful when marketing. This home based franchise has been ranked highly by numerous respected publications for several years.