Does Cornwell Quality Tools acquire franchises from franchisees?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
3. STATUS OF FRANCHISEE-OWNED OUTLETS. The following table gives the status of Cornwell franchises in each state in the last three years. Cornwell franchises are not subject to non-renewal, nor are Cornwell franchises ever acquired or re-acquired by the company. "Termination" for this purpose means that Cornwell terminated the franchise without providing any compensation to the franchisee (whether by payment or forgiveness or assumption of debt.)
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 69–100)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, Cornwell Quality Tools does not acquire franchises from its franchisees. The FDD states clearly that Cornwell Quality Tools franchises are never acquired or re-acquired by the company. This means that franchisees looking to exit the system cannot sell their franchise back to Cornwell Quality Tools.
Instead, the document indicates that transfers of ownership typically occur between franchisees, with Cornwell Quality Tools' approval. These transfers often involve the sale of assets like trucks, inventory, and accounts receivable, arranged directly between the outgoing and incoming dealers. Cornwell Quality Tools' involvement is primarily to approve the truck for continued use or to assist in the asset transfer process if requested by both parties.
Cornwell Quality Tools does, however, reserve the right to advise the new dealer on the terms of the transfer if they believe the terms could negatively impact the new dealer's financial situation. This oversight helps protect the incoming franchisee from potentially unfavorable deals. The FDD also specifies that ownership transfer is permitted to an active family member in the event of the franchisee's death or disability.
Prospective franchisees should be aware that they will need to find a buyer for their franchise if they wish to leave the Cornwell Quality Tools system, as the company itself will not purchase the franchise back. This is a common practice in franchising, where the responsibility of finding a buyer often falls on the franchisee. Understanding the transfer process and potential financial implications is crucial for anyone considering investing in a Cornwell Quality Tools franchise.