So if a big city car dealership with a huge staff of techs sends the tool truck dealer "packing" for whatever reasons, the franchise sales management will simply let the business go to the competition???
What alot of people forget or don't realize is that these companies aren't strictly in the business of selling tools. (Like Snap On is a bank)
If tool companies just sold tools, then yes, your right about loosing business on tool sales.
However, the companies have a huge stake in loans and selling franchises. A franchise isn't even tangable, so it's pure profit on something almost imaginary with zero financial risk to the parent company.
(especially when there is no marketing or ads. At least with a McD's part of your fees goes towards tv slots)
So if a dealer is failing in one shop, he's probably failing on his route. Unless he can get lucky and sell the route for cash, he will default on the loan. Now the company forcloses on the route, and being intangeble, there is no effort to repo. Now they sell the route all over again and again and again. Plus since most drivers finance through the company, said tool company also takes in interest.
-If your successful and pay off your loan, you're probablly selling plenty of tools and the corporation is making money.
-If you do too well, then there's a clause where corporate can take part of that route away and sell it, making them even more money.
-If you repay half your loan then default, the corporation gets to resell your route and make money.
-It's the guys that make their payments and just sell enough to scrape by that makes the least for corporate. But there is a clause where they can cancel your contract for not meeting sales volume, and resell your route for more money.
So it's not actually about selling tools and customer service. Its like a mafia front. The real business is selling debt and imaginary brand rights under a tool and service facade.
