Mac Tools
Mac Tools franchises allow professionals to sell automotive tools from mobile units, covering businesses like garages and dealerships. Known for providing essential equipment to mechanics, Mac Tools operates in the mobile distribution sector of the automotive aftermarket industry.
About Mac Tools
Mac Tools is an American company that distributes and markets tools and related equipment. It is headquartered in Westerville, Ohio, United States. The Mac Tools line consists of 9,082 tools, including screwdrivers, ratchets, wrenches, and assorted air tools.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Mac Tools franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of a Mac Tools franchise ranges from $137,885 to $418,385. This includes the mandatory payment ranging from $89,750 to $104,050 that must be paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The initial franchise fee is $8,000 and it is non-refundable upon signing of the Franchise Agreement [p.151, p.16]. This fee covers some of the expenses incurred by Mac Tools in offering and selling franchises, training franchisees, and assisting with the commencement of their business [p.37].
What are the ongoing royalty and advertising fees?
The franchisee will be responsible for paying royalties based on sales of Craftsman products in new channels through March 2032, with payments ranging from 2.5% to 3.5% of sales. Additionally, Mac Tools may engage in national, regional, or local advertising and promotions, but the franchisee has the sole right to determine the prices at which they sell Products and SBD Products [p.429, p.449, p.362, p.390]. Advertising costs are expensed as incurred, with amounts varying each year; for instance, $90.1 million was spent on advertising in 2025 [p.107].
How long is the initial franchise agreement, and can I renew it?
The term length of the initial franchise agreement isn't specified in the excerpts. Additionally, whether you can renew the franchise and under what conditions isn't detailed here either; however, there are provisions regarding non-renewal and termination on page [p.360] which might be relevant if certain conditions are met.
Can I sell or transfer my franchise, and what does that require?
You cannot freely sell or transfer your franchise; it requires Mac Tools' approval [p.64]. If you wish to transfer a Route to another Mac Tools franchisee, you must pay a Route Transfer Fee equal to one-half of the current initial franchise fee plus any reasonable attorney's fees incurred by Mac Tools [p.178].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee ceases to oversee the operation of the business, as assessed by the franchisor [p.402]. Additionally, termination may be based on reasonable cause as defined under Virginia law, but not on grounds that do not constitute 'reasonable cause' [p.428].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD indicates that you must have adequate financial resources and capital to operate the Mac Tools Business [p.177]. However, specific net worth or liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.64]. You may face competition from other franchisees, outlets owned by Mac Tools, or competitive brands controlled by them.
What training and ongoing support does the franchisor provide?
The franchisor provides initial one-on-one training during the first five working days on your Route, followed by at least five additional working days within the first 30 days with a Mac Tools representative. Additionally, you will receive training to cover some of the expenses incurred in offering and selling franchises, as well as assistance with commencing your business [p.61]. Note that prior to starting the renewal term, unless otherwise agreed, you must complete orientation and training classes for renewing franchisees at your expense [p.63].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD, none of the franchisees that signed a Franchise Agreement during the most recently completed fiscal year had opened an outlet as of the time of writing [p.91]. This isn't specified in the excerpts regarding the number of closed or terminated outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor, Mac Tools, does not make any financial performance representations [p.81]. However, if you are purchasing an existing Mac Tools Business, you may receive actual records of that business's performance [p.81]. This isn't specified in the excerpts for new franchises or units.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only certain Products and SBD Products to commercial users such as automotive after-market businesses and other specified entities [p.68]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than alternative sources [p.3].