What constitutes a 'transfer' by a Cornwell Quality Tools franchisee?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| you, the appointment of a receiver, assignment for benefit of creditors or a felony conviction. Cornwell may agree to waive any default on such terms as Cornwell determines. | ||
| i. Your obligations on termination/nonrenewal | Section 15 | Obligation includes payment of amount due, discontinuance of use of marks, and shipment merchandise to be purchased by Cornwell within 30 days of termination date. |
| j. Assignment of contract | Section 11 | No restriction on Cornwell's right to assign |
| by Cornwell | ||
| k. "Transfer" by you – | Section 11 | Includes transfer of franchise or assets |
| definition |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, a 'transfer' by a franchisee includes the transfer of the franchise itself or the assets of the franchise. Specifically, this encompasses selling or transferring the franchise, all or substantially all of the assets of the franchise business, or a controlling or non-controlling interest in the business to another person.
For a prospective Cornwell Quality Tools franchisee, this means that any attempt to sell the business, its assets, or a stake in the business is considered a transfer under the Franchise Agreement. This is a common provision in franchise agreements, allowing the franchisor to maintain control over who operates under their brand and ensuring that any new operators meet their standards.
Cornwell Quality Tools retains the right to approve any such transfer, and approval will not be unreasonably withheld as long as the buyer, transferee, or assignor meets the standards for new franchisees and complies with the transfer conditions specified in the Franchise Agreement. This protects Cornwell Quality Tools's interests by ensuring that any new franchisee is qualified and capable of maintaining the brand's standards. The FDD also notes that Cornwell has the right to assign the contract with no restrictions.