What defaults by a Cornwell Quality Tools franchisee cannot be cured?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| f. Termination by Cornwell with cause | Section 13 | Cornwell may terminate if you default in any obligation under the Franchise Agreement. |
| g. "Cause" defined – | Section 13 | You have thirty days to cure default due to non-payment, failure to maintain inventory purchase level or other reasons not set forth in subsection h below. Cornwell may agree to waive any default. |
| defaults which can be | ||
| cured | ||
| h. "Cause" defined — defaults which cannot be cured | Section 13 | You have no right to cure default caused by bankruptcy or similar proceedings against 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. |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, there are specific defaults that a franchisee cannot cure. These include defaults caused by bankruptcy or similar proceedings initiated against the franchisee, the appointment of a receiver, an assignment for the benefit of creditors, or a felony conviction. However, Cornwell Quality Tools retains the discretion to waive any default, even those that are typically non-curable, under terms they deem appropriate.
This aspect of the franchise agreement is important for potential franchisees to understand. Unlike some defaults, such as non-payment or failure to maintain inventory levels, which offer a 30-day cure period, these particular defaults provide no such opportunity. The franchisee's business can be terminated immediately if any of these events occur.
While Cornwell Quality Tools may choose to waive these defaults, this is not guaranteed and is entirely at their discretion. This could have significant implications for the franchisee's investment and business operations. Prospective franchisees should carefully consider these terms and perhaps seek legal counsel to fully understand the potential risks associated with these non-curable defaults.