What is the dependency of the continuation of the Cornwell Quality Tools franchise?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
Immediately following the first six months after the franchise agreement is signed, you must maintain average weekly purchases from Cornwell equal to at least 90% of the national average of Cornwell franchise dealers' weekly purchases during the current calendar year. Every week, Cornwell calculates the national average franchise dealer weekly purchase amount during the current year. (Total dealer year to date purchases, divided by the number of weeks to date, then divided by the number of dealers at the end of the week prior to the current week.) Each week, you must maintain average weekly purchases (year to date purchases divided by the number of weeks to date) equal to 90% of Cornwell's national weekly average. The continuation of the franchise depends upon continuing required purchase of Cornwell Products. A franchise may be terminated or the territory decreased if the purchase requirements are not met.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–30)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the continuation of the franchise is dependent on the franchisee's consistent purchase of Cornwell products. Specifically, starting six months after the franchise agreement is signed, a franchisee must maintain average weekly purchases from Cornwell equal to at least 90% of the national average of Cornwell franchise dealers' weekly purchases during the current calendar year.
Cornwell Quality Tools calculates the national average franchise dealer weekly purchase amount during the current year by dividing the total dealer year-to-date purchases by the number of weeks to date, and then dividing by the number of dealers at the end of the week prior to the current week. Each week, a franchisee's average weekly purchases (year-to-date purchases divided by the number of weeks to date) must be equal to or greater than 90% of Cornwell's national weekly average.
Failure to meet these purchase requirements can result in termination of the franchise agreement or a decrease in the franchisee's territory. This condition underscores the importance of effective sales and territory management for Cornwell Quality Tools franchisees, as their ability to maintain the franchise is directly tied to their purchasing activity from Cornwell.