Source: http://qa.muftisays.com/?12875
Question ID: #12875
 
Question: Is being a snap on franchisee in USA halal?
Assalaamualaykum Mufti Saheb,

apolgies in advance for the long question.

I am writing to seek your expert guidance and a formal fatwa regarding my livelihood. I operate a Snap-on tools franchise in Alabama, and I am increasingly concerned that the nature of my business—specifically the heavy involvement with interest (riba) and predatory sales tactics—is affecting my spiritual and personal life.

Payment Structures in My Business

I currently offer two methods for customers to purchase tools:

• 1. The "Truck Account" (Interest-Free)

This is an informal "handshake" agreement between myself and the customer. I apply a significant markup to the tools (often 60% to 100%). For example, if a customer buys a tool for $500, they pay a fixed weekly amount (e.g., $50 or $100) until the balance is cleared. There is 0% interest charged on these payments it's between me and them. Is this high-markup, deferred-payment model considered permissible?

2. Snap-on Credit (Interest-Bearing Loans)

For expensive items like toolboxes and tool, we facilitate formal loans through Snap-on Credit. This involves:

• Formal contracts spanning 1 to 5 years.

• Interest rates ranging from 9.9% to 29.9% APR.

• A business model that encourages keeping customers in perpetual debt to ensure they remain "on the truck."

Ethical and Spiritual Concerns

I feel a deep sense of guilt regarding the following:

1. Exploitation: The corporate strategy encourages us to keep customers in a cycle of debt so they remain dependent on the "tool truck" indefinitely.

2. Dishonesty: Due to high overhead costs, the finance on my own truck and a interst bearing loan I took out from snap on, I find myself exaggerating and lying to customers just to close a sale.

3. Facilitating Riba: I feel more like a bank agent than a tool salesman. I am worried that my role in processing these interest-bearing loans makes my income haram and my actions sinful.

background on how snap on finance:

Snap-on Credit LLC is a dedicated financial institution. It manages over $2.5 billion in receivables (money owed by customers).They use me (the franchisee) as the "loan officer." I do the paperwork, I assess the customer's character, and collect the "weekly installments"—but the high-interest profit goes back to the corporate entity.

they want to "keep customers in debt" is actually a core part of the business model. In the industry, this is often called "building the RA" (Revolving Account).

• Retention through Debt: If a customer owes you $2,000, they feel obligated to step onto your truck every week to pay. As long as they are on the truck, you have a chance to sell them more.

• The Trap: If they pay off their debt, they might stop coming onto the truck. This is why the corporate pressure is so high to "reload" the customer with a new purchase as soon as they have "room" on their credit line.

Personal Reflection and Seeking Hidayah

Lately, despite making significant money through the franchise, my life has taken a difficult turn since I started this business. I am facing worsening health issues and a broken relationship with my wife and children, I am constantly fighting and arguing. I fear these are the consequences of dealing in interest, dishonesty and missing salah.

The money I have earned so far is this halal or should I give this in charity and start again. I am desperate mufti sahib to find peace again. I know in my heart I am doing wrong, but I am fooling myself. I just need a wake up call.

I humbly request your guidance on the following:

• What are the specific warnings in the Quran and Hadith regarding those who sell or facilitate interest?

• Is the high-markup "Truck Account" model permissible if it remains 0% interest?

• If my business cannot survive without the interest-bearing loans, is it mandatory for me to leave this profession?


I am seeking hidayah and a way to earn a pure (tayyib) living . I look forward to your advice. I have been as transparent as I can be.
 
 
Answered by: Ulamaa ID 04 (London)
Date: 11/04/2026 20:58pm

بسم الله الرحمن الرحيم

الجواب حامداومصليا

There are warnings in the Quran and Hadith about dealing in Riba (interest).

“Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. Whoever refrains—after having received warning from their Lord—may keep their previous gains, and their case is left to Allah. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.”

“Allah has made interest fruitless and charity fruitful. And Allah does not like any ungrateful evildoer.”

“Indeed, those who believe, do good, establish prayer, and pay alms-tax will receive their reward from their Lord, and there will be no fear for them, nor will they grieve.”

“O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers.”

“If you do not, then beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm.”

(Surah Baqarah 2:275-279)

When doing transactions you must be honest and be fair. When giving a price it should be reasonable and not over priced.

When you are honest and fair in your dealings there will be Barakah in your earnings.

The Haram earning you have acquired you should give this in charity.

And Allah knows best.

13 Shawwal 1447/ 01 April 2026
Mufti Qamruzzaman

London, UK
 
www.MuftiSays.com