Top Three Tool Franchises - Hit the Nail On the Head!

27/08/2018 08:00 | Start a business

Tool franchises in the UK

Tool franchises are an enticing prospect for many would-be franchisees. Typically, they are affordable, flexible, and relatively easy to manage. However, to a large extent, the success of this type of franchise still depends on the amount of support provided by the franchisor. Here, we take a look at three of the most appealing franchise prospects in the tool and hardware industries.

UK tool franchise opportunities

Mac Tools

 

Mac Tools franchise
Mac Tools

Mac Tools produce tools that have been manufactured with the highest specifications to exceed national standards.

£5,000 Minimum investment
Retail & Stores
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Franchise basics
Mac Tools has a long history in both the UK and US. Originally founded in 1938 in Ohio, USA, the franchise quickly expanded across the country and made the move to the UK in 1960. The franchise now boasts 170 units and has worked hard to refine its business model to ensure that franchisees the world over can benefit from the Mac Tools brand.

Mac Tools specialises in selling high-quality tools to business and individuals around the UK. Franchisees will visit garages, dealerships, and engineering units with a mobile showroom, selling equipment to a wide array of customers in an exclusive territory.

What level of investment is required?
Mac Tools is considered one of the most affordable franchises in the hardware industry. With a franchise fee of just £5,000, there are few barriers to entry and franchisees can quickly begin turning a profit. A total investment of £50,000 is likely to be required to cover all the necessary start-up costs. This includes the cost of your van, tools, equipment, and training, among other things. As Mac Tools are a reputable franchise with a large number of existing franchisees, it is possible to borrow a significant portion of the initial investment required. Many major lenders will be comfortable lending around 70% of the investment to franchisees with a good credit history, who are in a stable and suitable financial situation.

What do franchisees receive in return for your investment?
In return for your investment, franchisees are granted the right to trade under the Mac Tools name and brand, as well as the Mac Tools van and all the stock you'll need to get you started. Every franchisee is enrolled on a two-week residential training course that encompasses product knowledge, business management, sales techniques, and getting to grips with your digital systems. Ongoing guidance and support are available from a number of sources and regular networking events are organised.

Mr Arkwrights Tool Emporium

Franchise basics
If youre looking for a tool franchise thats a little bit different, Mr Arkwrights may be the perfect business for you. Launched in 2012, the franchise benefits from a unique branding and has managed to capitalise on its distinctive look and feel by opening a number of new shops. The business specialises in DIY and household tools that cater to both amateur enthusiasts and professional builders. With a product range that includes tools, garden equipment, homeware, and furniture, it benefits from maintaining a large stock and attracting a diverse array of customers.

What level of investment is required?
In order to become a Mr Arkwrights franchisee, youll need to raise an initial investment ranging from £45,000 to £80,000. The precise amount will depend on your location and the size of your shop. This price includes the franchise fee, licence fee, and all start-up costs associated with opening a new business. In many cases, franchisees will be able to borrow a significant portion from traditional lenders.

What do franchisees receive in return for your investment?
In return for your investment, youll receive help finding a location, a full shop fitting and all the digital systems you need to run the business efficiently. Youll be enrolled on a comprehensive training scheme, where youll develop your marketing, sales, and management techniques. The central franchising team also provide ongoing support and guidance and advertise all new franchises extensively. The relatively low start-up costs, coupled with the amount of assistance franchisees receive, makes Mr Arkwrights Tool Emporium one of the most exciting franchise business opportunities out there.

Snap-On

Franchise basics
Snap-On began life as an American tool manufacturer and famously developed a unique product based around 10 snap-on' socket heads that could be used with a number of different handles. The company was founded in 1920, though it took 45 years for it to reach the UK. Established in the UK in 1965, they had managed to attract over 100 UK franchisees by the mid-70s. Today, this has grown to 430 franchisees across the UK and Ireland.

Snap-On specialises in delivering new and innovative tools and equipment to those businesses who need them. Whether it's a garage, showroom, or body workshop, Snap-On is able to supply the necessary tools to ensure the smooth running of many a business.

What level of investment is required?
If you're considering becoming a franchisee, you'll need to raise an initial investment of £74,000. This should cover all of the costs associated with opening the business. However, the franchise does have its own finance scheme. This means that suitable candidates need only put up an initial investment of £16,037. This is a six-year loan that does not need to begin being repaid until three months after the business is up and running.

What do franchisees receive in return for your investment?
All franchisees attend a training course at UK head office in Kettering. This ensures that you understand how to operate the Snap-On business model and provides you with all the skills necessary to sell your products and grow your business. Regular networking events are organised by the franchisor and there are regional sales specialists on hand to help you develop your skills.

Within the tool and hardware industry, there are a number of excellent investment opportunities for anyone looking to open their own franchise. The three weve highlighted are all relatively low cost and showcase excellent growth potential. While Snap-On and Mac Tools are both van-based franchises, Mr Arkwrights Tool Emporium is an exciting store-based franchise. All three franchisors offer extensive support and should provide you with everything you need to succeed in the industry.

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