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Snap-on Tools' There's a Difference

Congratulations on completing your ride-along! You enjoyed a first-hand look at how a Snap-on Tools Franchise business owner utilise the Snap-on program to forge a strong relationship with the professional tool users at the locations where they apply their trade. By having these close customer relationships in which the franchise owner provides such personal service, Snap-on gleans insights into the changing needs of the customers.

 

Ride Along Report

Let's talk about it.

  • What impressed you the most about the franchisee you rode with?
  • Did you get all of your questions answered?
  • How do you feel about the amount and types of accounts the franchisee had?
  • Would you be comfortable collecting money?
  • What do you think your biggest strength would be?
  • What do you think the most difficult part of the business would be?
  • Are you comfortable with the amount of hours you see the franchisee working?
  • Are you comfortable in a sales and collection orientated environment?

 

Customer Driven Selling

Snap-on have a unique method of delivering products to customers, in which after spending time on the van ride you will hopefully now have been exposed too. The method is Customer Driven Selling which compromises of:

  • Planning Your Day
  • Benefits of the Prelist
  • Review and Preview Garages
  • Greet the Customer with Product
  • Tote & Promote
  • Sell the Tools
  • Payment Options
  • Collect the Money

Innovative Point of Sale System

Did you observe the franchisee business owner was equipped with a custom point of sale (POS) system, we call “Chrome.” We designed Chrome to help the franchisees stay organized and maximise their time with customers instead of losing time with bookkeeping and inventory management. Chrome has many capabilities you may have not been able to experience on your ride-along, including:

  • Chrome Express Plus (Mobile POS Suite)
  • Electronic Contracts
  • Electronic Money Transfers
  • Customer Transfers
  • Product Transfers

 

Your Investment Package

The total investment is £126,200 - £136,200

  • All starter inventory
  • Training: Dedicated Franchise Developer for 4 weeks
  • Business set-up costs
  • Your franchise fee
  • Working capital*
  • Exclusive protected territory
  • Advanced sales and stock IT system
  • Continuous training and support
    • Monthly franchisee meetings
    • Franchise development training
    • National Franchise Conference

 

Now Let's Break that Down into More Detail

The total cost of the franchise is £126,200 - £136,200
You raise £15,000 - £25,000 *
We will finance £111,200

The £111,200 is divided into 2 different business loans

1. Loan 1: Inventory and Franchise fee £73,700

2. Loan 2: RA Development loan £37,500

Total £111,200
 
  • These costs are excluding VAT, but Snap-on Finance could also loan the VAT amount on the re-payment terms of:
    • A single “balloon” payment with the maturity at the end of the loan term
    • Term length: the due date will be 18 weeks from the date of contract/funded

 

Loan 1: INVENTORY & FRANCHISE FEE

Inventory start-up stock £69,200
Franchise Fee £12,000
Less down payment £7,500
(included in start-up capital)  
   
TOTAL £73,700

 

Repayments of loan 1 start in your 14th week of trading, this is designed to help reduce pressure on your business expenses in your first quarter

Loan 2: REVOLVING ACCOUNT (RA)

The RA development loan is there to help you grow your RA balance (money on the street) with your customers, selling them tools on their RA account which you will collect back in 6 – 8 weeks.

After 6 months of operating the business you should have reached £50,000 which is £37,500 at cost which will then be turned into loan 2

Funding your RA £37,500
TOTAL £37,500

Should you be successful in being offered a Snap-on franchise business and the area has an existing RA balance this would be audited and sold to you at the time you started with a 45 day recourse period.

Repayments on loan 2 start in week 27 of trading.

 

Start-Up Capital

The £15,000 - £25,000 that you need to raise includes:

  • £7,500 to obtain required licences to operate a Snap-on Franchise
  • £7,500 down payment on business loan 1
  • Up to £10,000 working capital*
    • **varies according to individualized expenses

UK FRANCHISE ON-GOING COSTS         ROI FRANCHISE ON-GOING COSTS

 

Application for Finance with Snap-on Finance

If you are considering Snap-on Finance, now is the time to review the Snap-on Franchise Finance Application and your new start budget.

You will need to send the following documentation:

  • Proof of Address (utility bill/bank statement) ensuring this is verified, named, signed and dated by a separate individual
  • Proof of ID including passport, as well as front and back of driving license, ensuring this is verified, named, signed and dated by a separate individual
  • New Start Budget
  • Proof of Funds ensuring this clearly displays Full Name, Bank/Building Society Name, Funds Available and Dated

 

Your Mobile Store

  • Custom-built – Store, Office and delivery vehicle
  • Designed to operate comfortably as a two-person store. This is good to know, especially if your plans include hiring a Franchisee Assistant in the future.
  • Snap-on Tools has an established relationship with Lynch Display Vehicles (LDV) and Kurt Hobbs Coachworks. Mobile stores are designed to Snap-on specifications.
  • All new Franchisees start with a 7.5T Iveco, unless they elect an approved second-hand vehicle
  • C1 driving license and CPC qualification to operate the vehicle.
  • The vehicle is your responsibility to maintain
  • Our dedicated Fleet Manager is available to support any questions you may have regarding the vehicle

Download Mobile Store Brochure

 

Review

You have now had a chance to read the full franchise agreement which outlines the obligations to a Snap-on franchise, is there anything you would like to ask? If you have decided that Snap-on Finance is your preferred way to finance the purchase of your Snap-on franchise business we will now review your application and budget.

 

Final Steps

The final step is a formal interview. Together, we will complete our discovery journey and answer any remaining questions you may have. If both parties feeling that this is a good fit, Snap-on will make you an offer a Snap-on Tools franchise. In preparation for the final interview be prepared to present to us your business and personal goals.

Set Goals That Motivate You

Think about your goals in two ways:

Your personal goals - What do you want the business to give you? How do you want it to better your life? This is your motivation, what will drive you to build a successful business.
 
Your business goals - Think about what direction you want to take your business in? Break it down into short (within a year), medium (1 - 5 years) and long term goals.

The physical act of writing down a goal makes it real and tangible and reminds you every day of what it is you intend to do.

 

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