Does Cornwell Quality Tools charge an initial franchise fee?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
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Cornwell charges no initial franchise fee or royalty fee. As a new dealership, you must purchase an initial inventory of Cornwell products of at least $60,000 at regular dealer net prices.
Unless waived by Cornwell, you must also establish a Reserve with Cornwell in the amount of $20,000, to be applied against the further purchase of inventory during the first 13 weeks of the dealership. Unless waived, you must also verify at the outset of the dealership that there is $15,000 on deposit in a business account that will only be used for business purposes on or after the first day of training on your route. The estimated initial investment ranges from $79,525 to $323,825 for convertees and from $174,525 to $318,825 for new dealers. Refer to Items 5 through 7 and 10 inclusive of this Disclosure Document for further explanation regarding the total investmen
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the company does not charge an initial franchise fee. However, new dealers are required to purchase an initial inventory of Cornwell products, which must be at least $60,000 at the regular dealer net prices. This initial inventory investment is a significant upfront cost for new franchisees.
In addition to the initial inventory purchase, unless waived by Cornwell Quality Tools, franchisees must establish a Reserve with Cornwell in the amount of $20,000. This reserve is to be applied against further purchases of inventory during the first 13 weeks of the dealership. Franchisees must also verify that they have $15,000 on deposit in a business account that will only be used for business purposes on or after the first day of training on their route, unless waived.
The estimated initial investment for a Cornwell Quality Tools dealership ranges from $174,525 to $318,825 for new dealers. While there is no franchise fee, the initial financial commitment is substantial due to the inventory, reserve, and other required investments. Prospective franchisees should carefully consider these costs and ensure they have sufficient capital before investing in a Cornwell Quality Tools franchise.