What was the 'Income (loss) before taxes' for Cornwell Quality Tools Company?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
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CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2024
FROM PRESENT
| Cornwell | ||||
|---|---|---|---|---|
| Quality Tools | CQT | |||
| Company | Kennedy, LLC | Eliminations | Consolidated | |
| SALES | $ 275,055,223 | 23,256,268 | (14,828,378) | $ 283,483,113 |
| Less: Dealer weekly volume incentives | 4,922,200 | 203,951 | (1-1,020,570) | 5,126,151 |
| Sales - Net | 270,133,023 | 23,052,317 | (14,828,378) | 278,356,962 |
| COST OF GOODS SOLD | 201,176,341 | 22,307,409 | (14,828,378) | 208,655,372 |
| Gross profit | 68,956,682 | 744,908 | 69,701,590 | |
| EXPENSES | ||||
| Shipping and warehousing | 7,464,552 | 8,506 | - | 7,473,058 |
| Selling | 24,118,591 | 721,478 | - | 24,840,069 |
| General and administrative | 15,326,832 | 1,087,207 | - | 16,414,039 |
| Employee stock ownership plan contribution | 5,000,000 | - | - | 5,000,000 |
| Goodwill amortization expense | 848,375 | 848,375 | ||
| Total expenses | 51,909,975 | 2,665,566 | _ | 54,575,541 |
| Income (loss) before financing operations | 17,046,707 | (1,920,658) | 15,126,049 | |
| FINANCING OPERATIONS | ||||
| Revenues | 25,865,411 |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the company's 'Income (loss) before financing operations' was $17,046,707, while CQT Kennedy, LLC experienced a loss of $1,920,658. This resulted in a consolidated income before financing operations of $15,126,049.
Additionally, Cornwell Quality Tools had total financing income of $27,409,695 and expenses of $11,076,187.
It is important to note that this data reflects 'Income (loss) before financing operations' rather than 'Income (loss) before taxes'. To obtain the 'Income (loss) before taxes', a prospective franchisee should request further clarification from Cornwell Quality Tools regarding their tax liabilities.