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According to a lawsuit filed by Marks & Klein, LLP, Stanley Black & Decker-owned Mac Tools tricks individuals into becoming Mac Tools distributors/franchisees, then forces them to perform repairs, process returns, and become repo men on a regular basis for no compensation.
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In doing so, Mac Tools violates the Fair Labor Standards Act (FLSA) and the Minnesota Fair Labor Standards Act (MFLSA), according to the lawsuit.
The complaint, filed on behalf of Dee C. Walter, a Minnesota Mac Tools distributor of 39 years, also alleges that Mac Tools fails to comply with federal and state franchise laws.
Mac Tools has maintained that its opportunity is a 'distributorship' and not a franchise.
[SeeIs MAC TOOLS Stanley Black & Decker Selling Illegal Franchises?]
[See MAC TOOLS Guilty of Franchise Fraud?]
'MAC dictates… with an iron fist.'
Mac Tools markets its mobile tool distributor/franchise opportunity with an emphasis on the freedom and autonomy Mac Tools provides.
But the lawsuit filed by franchise attorney Jerry Marks tells a different story.
'Mac captures its ‘distributors' with false promises, then dominates, controls, and exploits them,' the suit alleges.
'Mac aggressively dominates and controls the methods, details, and day-to-day business activities of the distributors to the detriment of the distributors and for the sole and exclusive purpose of inflating Mac's sales and profits….'
In sharp contrast to the freedom promised in Mac Tools franchise ads, the suit states 'Mac dictates every minute of a distributor's day with an 'iron fist.'
'…warranty repairman for no compensation'
According to the suit, Plaintiff Dee C. Walter would have never signed up with Mac Tools if they had disclosed that he'd have to do 10-15 hours of work per week without compensation:
This lawsuit arises from Defendant's willful failure to properly compensate Plaintiff, who is a former Mac Tools distributor, for certain warranty and repair work that Defendant requires all Mac Tools distributors to perform, in violation of the Fair Labor Standards Act 29 U.S.C. § 201 et. seq. ('FLSA')…
A significant requirement that the Distributor Agreement, as well as the preceding 'Disclosure Document' failed to disclose was the fact that distributors would have to perform certain repair and warranty work on broken tools purchased by Mac customers….
Mac and Stanley willfully failed to disclose any of the repair work that a distributor must perform in both the Disclosure Agreement and the Distributor Agreement. Instead of properly disclosing this additional, material and significant obligation to Plaintiff and other distributors prior to their entry into the various agreements, Mac and Stanley instead thrust these obligations on unsuspecting distributors after they have already entered into the system.
Had these burdensome obligations originally been disclosed by Defendants, plaintiff would not have entered into the various agreements and the Mac franchise system….
Mac's failure to disclose the numerous hours of warranty repair work that a distributor would have to perform each week, and Stanley failure to pay distributors a statutory mandated wage for the services performed constitutes an intentional fraud by omission and a violation of the Fair Labor Standards Act (FLSA).
The suit alleges that Mac Tools put an unfair burden on the longtime distributor:
Specifically, Mac required Plaintiff to repair or replace any broken items a customer may have had that were under warranty…
By way of example, Plaintiff was required to replace 'stripped gears' in the heads of ratchet wrenches or replace defective tool chest drawer rails. Mac failed to compensate Plaintiff for the time he spent repairing this equipment…
Overcharged For Tool By Mac Dealers
Furthermore, Mac required Plaintiff to spend countless hours throughout each week packaging and returning broken warranty tools such as air guns, electronic diagnostic equipment, and floor jacks, without compensating Plaintiff for his time.
Additionally, Plaintiff incurred significant expenses in the hundreds of dollars on shipping charges returning warranty items to Mac, without Mac ever reimbursing Plaintiff…
Mac also required Plaintiff to spend countless hours per week repossessing equipment that Mac customers purchased directly from Mac, but could no longer afford to pay for. …
Plaintiff consistently spent between ten (10) and fifteen (15) hours a week performing these unpaid job requirements for Mac.'
Overcharged For Tool By Mac Dealer Locator
For violations of the Fair Labor Standards Act (FSLA) and the Minnesota Fair Labor Standards Act (MFSLA), the Plaintiff is seeking 'unpaid wages, liquidated damages, attorneys' fees and costs of suit, prejudgement interest, and declaratory judgements that Plaintiff was acting as employees of Mac while performing any repair or warranty work entitling them to unpaid wages under the FSLA [and MFSLA].'
ARE YOU FAMILIAR WITH THE MAC TOOLS DISTRIBUTORSHIP OPPORTUNITY? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.
'MAC Tools screwed us' states MAC Tools Distributor Cory Seguin in a video that warns would-be franchise owners from owning a MAC Tools mobile tool distribution franchise.
(UnhappyFranchisee.Com) (The Seguin's video and a transcript of the text are posted below).
In the video, Cory & his wife Michelle tell how MAC Tools sold them a tool truck route (at an investment, thus far, of $130,000) without telling them that three prior distributors had failed with the same route.
The Seguins contend that more than half of MAC Tools distributors fail, in part because of a lack of corporate support, inadequate tool financing, and independent competitors who sell the same products at significantly lower prices.
The Seguins claim their MAC District Manager (DM) had no concern for their success, and was only interested in collecting a 'huge sign up bonus.'
Are you a MAC Tools distributor or former distributor? Please share your opinions and experiences with a comment below. If you are willing to take a short survey, see the link below.
MAC Screwed Us Cory & Michelle Seguin Speak Out
By way of example, Plaintiff was required to replace 'stripped gears' in the heads of ratchet wrenches or replace defective tool chest drawer rails. Mac failed to compensate Plaintiff for the time he spent repairing this equipment…
Overcharged For Tool By Mac Dealers
Furthermore, Mac required Plaintiff to spend countless hours throughout each week packaging and returning broken warranty tools such as air guns, electronic diagnostic equipment, and floor jacks, without compensating Plaintiff for his time.
Additionally, Plaintiff incurred significant expenses in the hundreds of dollars on shipping charges returning warranty items to Mac, without Mac ever reimbursing Plaintiff…
Mac also required Plaintiff to spend countless hours per week repossessing equipment that Mac customers purchased directly from Mac, but could no longer afford to pay for. …
Plaintiff consistently spent between ten (10) and fifteen (15) hours a week performing these unpaid job requirements for Mac.'
Overcharged For Tool By Mac Dealer Locator
For violations of the Fair Labor Standards Act (FSLA) and the Minnesota Fair Labor Standards Act (MFSLA), the Plaintiff is seeking 'unpaid wages, liquidated damages, attorneys' fees and costs of suit, prejudgement interest, and declaratory judgements that Plaintiff was acting as employees of Mac while performing any repair or warranty work entitling them to unpaid wages under the FSLA [and MFSLA].'
ARE YOU FAMILIAR WITH THE MAC TOOLS DISTRIBUTORSHIP OPPORTUNITY? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
To contact the author or site admin, email UnhappyFranchisee[at]gmail.com.
'MAC Tools screwed us' states MAC Tools Distributor Cory Seguin in a video that warns would-be franchise owners from owning a MAC Tools mobile tool distribution franchise.
(UnhappyFranchisee.Com) (The Seguin's video and a transcript of the text are posted below).
In the video, Cory & his wife Michelle tell how MAC Tools sold them a tool truck route (at an investment, thus far, of $130,000) without telling them that three prior distributors had failed with the same route.
The Seguins contend that more than half of MAC Tools distributors fail, in part because of a lack of corporate support, inadequate tool financing, and independent competitors who sell the same products at significantly lower prices.
The Seguins claim their MAC District Manager (DM) had no concern for their success, and was only interested in collecting a 'huge sign up bonus.'
Are you a MAC Tools distributor or former distributor? Please share your opinions and experiences with a comment below. If you are willing to take a short survey, see the link below.
MAC Screwed Us Cory & Michelle Seguin Speak Out
'MAC Tools Screwed Us' Video Transcript
Cory: My name is Cory and this is my wife Michelle. I am a Mac tools distributor and this is how MAC tools screwed us.
Michelle: They started off by painting a beautiful picture of how life would be like as a distributor; being your own boss, running your own business, having more time to spend with your family and having a much a larger wallet. We invested over $130,000 and Cory is yet to draw a paycheck after 14 months. We are struggling. The DMs paint a great picture because they are thinking of the huge sign up bonus that they will get.
Cory- Mac did not tell me that there were 3 prior failed distributors on my route or that 6/10 distributors fail with in the first year.
They claimed that there was tons of support; I received no support from MAC Tools, my RM or My DM when I needed them!
MAC took away the MAC card 8 months in, which means no financing for customers. Especially on tool boxes so I could not even compete with the competitors.
Michelle: They put me in a route knowing that there was an independent dealer selling the exact same products for much lesser prices and again I couldn't compete.
There was even a light that Cory sold to all his customers that was advertised as a MAC exclusive product. A month later it was out in the Canadian Tire flyer. He sold it for $133.00 and CT for $20.99. We paid $95.19 as distributors for those. Customers were furious and his DM did nothing to help him. Cory lost a lot of money and people's trust
MAC expects you to put each customer on a Time payment plan so the tool is paid off in 5 weeks. But MAC you wants you pay them within 30 days, if not you will be put on hold and that means no tool orders shipped. Most trade's people cannot afford to pay a large tool off in 5 weeks. But we have to pay MAC. There were even orders placed on our behalf that we didn't order. It is not humanly possible for a distributor to do this alone ….that is why they want the wives to be involved.
Cory: we were really taken advantage of and now we could lose everything. Don't make the same mistake that I did and get screwed by MAC Tools.
Cory & Michelle Seguin would like to hear from other MAC Tools distributors. If you are willing to share your experience through a short survey, please click here:MAC Tools Distributor Survey.
If you would like to contact Cory & Michelle Seguin, please send a request to UnhappyFranchisee[at]gmail.com
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ARE YOU FAMILIAR WITH THE MAC TOOLS FRANCHISE DISTRIBUTOR OPPORTUNITY? PLEASE SHARE YOUR OPINION BELOW.
TAGS: MAC Tools, MAC Tools franchise, MAC Tools video, MAC Tools distributor, MAC Tools pricing, MAC Tools franchise opportunity, MAC Tools distributor opportunity, MAC Tools dealer, tool truck franchise, mobile tool franchise, Stanley Black & Decker, franchise complaints, franchise lawsuits, Cory Michelle Seguin, Cory Seguin Mac Tools, Michelle Seguin Mac Tools
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