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To start a tool franchise, significant research must be carried out to determine the potential for customers. Once you are satisfied that you have a sufficient customer base, 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 on spending several tens of thousands of dollars to purchase tool inventory, 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 their products. Many mechanics enjoy the convenience of having tools delivered to their job site. In addition, they have the guarantee that these state-of-the-art tools offer.
When the decision to buy a tool franchise is 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 often be acquired from a previous franchisee. With most tool franchise operations, there is no free or unclaimed territory and the franchise owner is not allowed to solicit customers outside of their given territory.
The art of selling, as well as the skill of collecting, rests solely with the owner of the tool franchise. Most items in the high-end tools catalog are sold on a pay-as-you-go basis. It is the seller’s duty to also collect payments for the products sold. With prices for tools and equipment typically in the thousands of dollars, the amount of credit given to a customer is substantial. Failure to collect sales can lead the franchise holder to bankruptcy.
Competition is typically fierce among franchise tool dealers. While a reseller may have exclusive rights in a certain territory for a specific tool brand, there may be several other competing brands that also hold exclusive rights within the same territory. Competition among franchise dealers can be extreme, with some dealers cutting costs dramatically in order to lure a customer to another brand of tool.
A tool franchise can be a profitable venture. A successful tool dealer can often build long-term relationships with customers. The chance to be the boss and not be stuck in an office is attractive. The need for financial gain and production is usually the determining factor in the decision to buy a tool franchise.