Snap-on Tools
snap-on TURNS THE TAP ON

Finance is still one of the biggest obstacles facing many small businesses. That applies to new franchisees even with such well-established brands as Snap-on Tools, the world’s largest independent tool manufacturer and one of the oldest franchise systems in the world. That’s why, in a first for New Zealand, the company has launched the Snap-on Finance Programme, an initiative that provides financial support to prospective franchisees who are experiencing difficulty in raising business loans elsewhere.

‘Despite Snap-on Tools having accreditation under many major banks’ franchise-specific loan programmes, potential franchisees have found the loan process increasingly difficult, lengthy and sometimes impossible,’ says Nick Hudson, the company’s franchise manager. ‘It’s frustrating for us to see good people unable to get into the franchise, so we’ve created the Snap-on Finance Programme. This provides a complete finance package for a new franchisee with a minimum down-payment of $37,000, making Snap-on one of the most affordable franchises for anyone contemplating their own small business.’

Five new franchisees have already started under the programme in Australia. Steve Marsh, the first person to use the programme, says, ‘Trying to get a loan from a bank to start my business turned out to be an absolute “spider’s web”. Using the Snap-on Finance Programme meant I could get a stress-free loan quickly from someone who really understands my business.’

The programme, also available in New Zealand, enabled Steve to cover essential business start-up costs including a new custom built Snap-on mobile store and product inventory, both of which can be provided to a new franchisee through a number of different business loans and payment plans which are all specifically designed to integrate with the Snap-on business plan and cash-flow model. The security for the loans is limited to the assets of the franchise, rather than, say, the franchisee’s house. ‘This demonstrates the level of confidence we have in those who meet our stringent franchisee selection criteria,’ says Nick.

Invest Small, Grow Big 

Snap-on Tools franchisees are able to build substantial businesses from this low-investment start point. Their customers are typically professionals in the repair industries for cars, trucks, boats, light aircraft and motorcycles who need the best tools for every job. ‘Our range of 19,000 products includes everything from high quality hand tools to diagnostic equipment, information and management systems, and under-car equipment like hydraulic lifts and tyre changers,’ Nick explains. ‘By taking their mobile tool showroom to customers on a weekly basis, franchisees build up long-term relationships – and they’re always around when something new is needed. The result is an opportunity that has seen good franchisees become very successful indeed, with some even owning multiple mobile showrooms.’

Paul Woosnam has had a taste of that success already. He joined Snap-on Tools just two years ago, after he and his wife set out on their big OE rather later in life than most. ‘I was introduced to Snap-on Tools just before we left the UK and we liked the concept – and New Zealand – so much, we decided to buy a franchise in Christchurch and settle here.’

Having had a career in retail for 18 years, Paul admits he had no mechanical knowledge. ‘My clients know far more about tools than I do, but that doesn’t matter – I’m just honest and tell them that and it has helped me build a fantastic rapport. It’s all about service and treating others the way you’d like to be treated yourself.’ As proof of his approach, in just two years Paul has become the top dealer in the country and was named Snap-on Tools franchisee of the year for last year in both New Zealand and Australia – making him one of the top performers among the 4,000 Snap-on franchisees worldwide. ‘I’ll certainly be looking for a second truck one day soon,’ he says happily.

Grabbing The Opportunity

Another Paul, Paul Mahar, agrees that the business is all about building relationships. The Wellington/Otaki franchisee joined Snap-on two years ago after becoming disenchanted with corporate life. ‘I spent about 12 months looking round for a business that would fulfil my criteria and it was my wife, Karen, who spotted Snap-on Tools.

‘We wanted a business that allowed family involvement and could be operated during a normal working day. Most of my friends thought I was completely mad because I don’t know anything about tools, but that has really not been a problem. The training programme was very well-structured and taught me all I needed, and it’s just gone on getting better. Financially, we are certainly where we wanted to be after only two years and we can see there is more to come.’

For anyone interested in the Snap-on Tools franchise, Nick Hudson invites them to have a look at the Snap-on website and watch some of the videos showing what life is like as a franchisee. ‘It’s a great business, with a great brand, in a great market,’ he says. ‘And now it’s more affordable than ever. We need more people in New Zealand right now so don’t delay – call me and see if you qualify for our Finance Programme. Snap to it!’ 

This advertorial is taken from Franchise New Zealand magazine Volume 20 Issue 4 

Contact details for Snap-on Tools

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