To begin a tool franchise, significant research should be completed to determine the potential for customers. Once satisfied that a sufficient customer base exists, contact the parent company of the planned franchise and arrange a meeting. Most companies offer training and support for new franchise operators, as well as assistance in setting up a sales route. Finally, plan to spend several tens of thousands of dollars to purchase tool stock, a tool transport vehicle and insurance.
A tool franchise is an opportunity for many to launch a home business. Many popular high-end tool companies offer tool franchise opportunities to individuals in order to sell its products. Many mechanics enjoy the convenience of having the tools delivered to his or her place of business. Moreover, they enjoy the guarantee that these high-end tools offer.
When the decision to purchase a tool franchise has been made, the first step is to contact the tool company that will sell the franchise. Most tool franchise sales include a specific territory. This territory must be purchased, many times from a previous franchise owner. With most tool franchise operations, there is no free or unclaimed territory and the franchise owner is not allowed to solicit customers outside of his or her given territory.
The art of sales as well as the skill of collecting fall solely on the tool franchise owner. Most of the high-end tool catalog items are sold on a payment basis. It is the duty of the salesman to also collect the payments for the products sold. With prices for tools and equipment often in the thousands of dollars range, the amount of credit extended to a customer is substantial. Failure to collect on sales can bankrupt a franchise holder.
Competition is typically fierce between franchise tool dealers. While one dealer may have sole rights to a given territory for a particular tool brand, there may be several other competing brands also holding exclusive rights within the same territory. Competition between franchise dealers can be extreme, with some dealers drastically cutting cost in order to entice a customer over to another brand of tool.
A tool franchise can be a lucrative endeavor. A successful tool dealer can often create long-term relationships with clients. The chance to be the boss and not be tied to an office is an enticing one. The need for financial gain and output is often the determining factor when deciding to purchase a tool franchise.