factual

In the Cornwell Quality Tools agreement, who is considered the 'Dealer'?

Cornwell_Quality_Tools Franchise · 2025 FDD

Answer from 2025 FDD Document

The undersigned, individually and/or collectively, having a franchised dealership of Cornwell Quality Tools products and (if applicable) the individual owner or owners of such dealership if it is an entity, as active partners in the operation of the business (individually and/or collectively referred to as "Dealer"), hereby orders and agrees to purchase from CORNWELL QUALITY TOOLS COMPANY, an Ohio Corporation ("Cornwell"), the inventory and other property to be delivered to Dealer by Cornwell and described on documentation to be sent to Dealer at the times of shipment (the "Inventory"). This order will become binding and effective when accepted in writing by Cornwell in Ohio.

Source: Item 23 — RECEIPT (FDD pages 101–373)

What This Means (2025 FDD)

According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the "Dealer" refers to the undersigned who has a franchised dealership of Cornwell Quality Tools products. This includes, if applicable, the individual owner or owners of the dealership if the dealership is an entity. The owners must be active partners in the operation of the business. The Dealer orders and agrees to purchase inventory and other property from Cornwell Quality Tools Company, which will be delivered to the Dealer. The order becomes binding when accepted in writing by Cornwell in Ohio.

This definition is important because it clarifies who is responsible for fulfilling the obligations outlined in the franchise agreement and related documents. The "Dealer" is the party directly contracting with Cornwell Quality Tools and is therefore accountable for payments, maintaining insurance, and adhering to the operational standards set forth by the franchisor.

For a prospective franchisee, understanding this definition is crucial. If the franchise is owned by a corporation or other entity, the individual owners who are active partners are also considered part of the "Dealer" and are thus responsible for the dealership's performance. This ensures that Cornwell Quality Tools has recourse to both the business entity and the individuals actively managing the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.