With a new line of work comes a new list of things to learn. We’re here to help with some of the most common terms you’ll come across upon starting as a new Matco franchisee.
Starting a new business comes with its share of challenges and questions. We at Matco pride ourselves on providing our new franchisees with all the support they’ll need to succeed – that’s what makes us a family.
Whether you’re a new franchisee or you’re simply considering starting your own franchise with Matco, you’re bound to come across terms that you’re not entirely familiar with. That’s why we’ve come up with the following glossary that defines some of the most common terms you may not have heard of before. This post can serve as a handy reference – take a look:
Franchisee: The franchisee is the owner of an individual franchise. That’s you.
Franchisor: That’s Matco, the corporate franchise seller. You’ll use our branding, our tools, and our advertising all to your advantage as the franchisee. By joining the Matco family, you’ll be able to take advantage of our proven business system, increasing your chances of finding success.
Assets: These consist of your equipment, supplies, products, and other physical items associated with your business. When you’re ready to retire years down the line, you’ll be able to sell these. Your ability to build equity in a business as you grow it is one of the most appealing aspects of being your own boss.
In-House Financing: This means you can finance your investment and costs directly through Matco, rather than going through a bank. Even if you’re not sure about the strength of your credit, we have many flexible options, so there may be something available for you. There’s no downside to seeing what may be available.
Pre-Approval: You can apply for pre-approval on a financing plan through Matco right online. By entering some basic information into our 100% secure system, you’ll be able to find out what type of plan you’re qualified to receive.
Franchise Agreement: When starting with Matco, you’ll sign a franchise agreement that outlines both your responsibilities as the new franchisee and ours as the franchisor. It’s a document you’ll want to read carefully and have your attorney or accountant review with you as it contains protections for you and your rights as a franchisee. Matco’s is a ten-year agreement, and after those ten years, you’ll need to renew the agreement.
The Mobile Franchise: Our franchisees are the proprietors of mobile franchises – this means that as a part of the Matco family, you’re not tied down to a brick-and-mortar operation. This has a number of benefits – first, you don’t have to own or lease expensive real-estate property. As well, instead of requiring your customers to come to you, you can go directly to your customers. Your exposure will increase, your hours will be flexible, and you’ll be able to run your new business the way you want.
The Route: As a new franchisee, we’ll do our best to start you out on the right foot. Your route will be made up of hundreds of potential new customers – generally, professional technicians who are required to purchase their own tools to perform their jobs. Those customers are surveyed by one of our Matco Local Managers, and these customers will be put on the list of calls in your Exclusive Geographic Territory. This means that you won’t be competing with other Matco Franchisees – the customers will be all yours.
No employees: Day-to-day, your business will depend and rely on the hard work of one person – you. That means you’re your own boss, and don’t have to worry about managing a staff. Of course, we’re there to support you in any way necessary.
Tools & Equipment: Or, your product offering to your new customers. Matco rolls out hundreds of new and exclusive products annually and offers more than 22,000 of the highest quality tools and products in the industry. We’re trusted by our customers because we help them work harder and smarter every day.
Training: Matco’s training services are unmatched. Whether you’re new to the industry or a seasoned veteran, we’ll take the time to make sure you know everything you need to know to be successful in your new business venture. You’ll receive training before you begin, and we always offer continuous training as your business matures. In addition, our existing franchisees are always happy to offer help to the new members of the Matco family.
National Advertising: Name recognition is never a problem for our franchisees. Matco’s national advertising promotes the brand with campaigns that span television, motorsports and industry publications. We don’t charge our franchisees advertising or royalty fees, freeing up your dollars to grow your business on the ground.
Business plan: As you’re first starting up, it’s important to develop a business plan. Writing a business plan enables you to prepare yourself for running the business. What are your expectations? How will you meet challenges as they arise? Since Matco writes many of our own loans, we know what needs to be in your business plan, so we’ll be able to offer plenty of help with this process.
Franchise Disclosure Document: Under federal law, you’ll receive a Franchise Disclosure Document (FDD) at least 14 days before signing a franchise agreement. Matco, as the franchisor, is required to provide you this uniform document, which will tell you all about the franchisor, their corporate history, their audited financial statements, their past and current legal issues, dispute resolution, renewal, termination and transfer information, the programs they offer, how many franchisees they have in their system, who the franchisees are and how they can be contacted, what franchisees have recently left the system, how franchisees are distributed throughout the country, the costs associated with purchasing a franchise, copies of any agreements you would be required to sign and even financial performance representations which you and your accountant or attorney can use to get an idea of the average sales volume of a franchisee.
Time Payment Account: This is one of the major ways you’ll collect money as a franchisee. A Time Payment (TP) Account is an account through which your customers will be able to purchase products on credit, and can then pay for them over several weeks or months. TP accounts are one of Matco’s best sales tools – your customers will enjoy that they can purchase a new tool without spending the money that day.
It might look like a lot to learn, but with Matco’s support every step of the way, we know you’ll catch on quick. To take the next step, fill out our Tell Me More form. This form is simply an initial indicator in finding out if franchising is right for you and your family. It will in no way commit you to buying a franchise.