How can the agreement between the dealer and Cornwell Quality Tools be modified?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
Cornwell may agree to waive any default, in its sole discretion, upon such terms as Cornwell determines. Without limiting the foregoing, Cornwell may require Dealer to agree to a modification of the Territory as a condition of waiving Dealer's failure to use best full-time efforts to serve the Territory fully. No action or failure to act on the part of Cornwell shall operate as a waiver or otherwise of the subsequent right to terminate Dealer, unless expressly so stated in writing.
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, Cornwell Quality Tools may require a dealer to agree to a modification of their territory as a condition of waiving a default. This is done at Cornwell Quality Tools' sole discretion and upon terms they determine.
This means that if a Cornwell Quality Tools dealer fails to meet certain obligations, such as using their best efforts to fully serve their territory, Cornwell Quality Tools has the right to demand a change to the territory as a condition for waiving the dealer's default. The dealer may need to accept a smaller or altered territory to remain in good standing with Cornwell Quality Tools.
This clause protects Cornwell Quality Tools by allowing them to address performance issues and ensure territories are adequately served, while also presenting a risk to the dealer, who could see their territory reduced if they fail to meet expectations and Cornwell Quality Tools chooses to enforce this provision. This is not uncommon in franchising, as franchisors often retain the right to modify agreements to maintain brand standards and operational efficiency.