Snap-on Tools Franchise FDD, Profits & Costs (2025)
Snap-on Tools, founded in 1920, is a well-established franchise known for its high-quality repair and diagnostic tools and equipment.
Headquartered in Kenosha, Wisconsin, Snap-on Tools began offering franchise opportunities in 1991, providing entrepreneurs the chance to operate a mobile store that sells a wide range of tools directly to professionals at their places of work.
This mobile business model is one of the key features that distinguish Snap-on from traditional retail tool outlets.
The franchise model emphasizes flexibility and convenience, allowing franchisees to bring their store directly to customers, eliminating the need for clients to visit physical stores.
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Initial Investment
How much does it cost to start a Snap-on Tools franchise? It costs on average between $222,000 – $500,000 to start a Snap-on Tools franchised store.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Real Estate | $0 |
| Initial License Fee | $8,000-$16,000 |
| Initial Inventory | $139,000-$149,000 |
| Electronic Signature Pad | $0–$270 |
| Supplies | $0-$600 |
| Van | $65,000-$195,000 |
| Van Insurance (3 months) | $827-$4,953 |
| Van Delivery Charge | $200-$4,800 |
| License | $200-$2,400 |
| Acquisition / Development of Revolving Accounts | $0-$85,000 |
| Other Equipment, Fixtures and Expenses | $150-$170 |
| Software License Fee | $3,200 |
| Documentation Fee with Snap-on Franchise Finance Loan | $100-$250 |
| Minimum Down Payment with Franchise Finance Program | Typically $25,000 |
| Additional Funds – 3 Months | $5,174-$38,705 |
| Estimated Total Initial Franchise Expense | $221,751-$500,098 |
Average Revenue (AUV)
How much revenue can you make with a Snap-on Tools franchise? A Snap-on Tools franchised facility makes on average $797,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,273,000 yearly revenue for similar hardware franchises. Below are 10 Snap-on Tools competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Snap-on Tools Franchise Disclosure Document
Frequently Asked Questions
How many Snap-on Tools locations are there?
As of the latest data, Snap-on Tools operates a total of 3,344 locations. This includes 3,201 franchised units and 143 company-owned units.
What is the total investment required to open a Snap-on Tools franchise?
The total investment required to open a Snap-on Tools franchise ranges from $222,000 to $500,000.
What are the ongoing fees for a Snap-on Tools franchise?
Snap-on Tools franchisees pay an 8% royalty fee on gross sales to support brand operations and product enhancements. Additionally, a 1% marketing fee is collected to fund advertising and brand campaigns, promoting visibility across franchise locations.
What are the financial requirements to become a Snap-on Tools franchisee?
To qualify as a Snap-on Tools franchisee, candidates generally need a minimum net worth of $250,000 and liquid capital of around $50,000. These financial requirements ensure franchisees have the necessary resources to cover startup costs, maintain operations, and meet ongoing expenses while they establish their business.
How much can a Snap-on Tools franchise owner expect to earn?
The average gross sales for a Snap-on Tools franchise are approximately $0.80 million per location. Assuming a 15% operating profit margin, $0.80 million yearly revenue can result in $120,000 EBITDA annually.
Who owns Snap-on Tools?
Snap-on Tools is owned by Snap-on Incorporated, a publicly traded company listed on the New York Stock Exchange under the ticker symbol SNA. The company is headquartered in Kenosha, Wisconsin, and is led by Nicholas T. Pinchuk, who has served as President and Chief Executive Officer since 2007 and as Chairman of the Board since 2009.
Disclaimer
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