What is the initial franchise fee for a Cornwell Quality Tools dealership?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Method of Payment | When Due | To Whom Made | |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $-0- | N/A | N/A | N/A |
NOTE 1 - Initial Franchise Fee. If you are a new Dealership, you must purchase an initial inventory of at least $60,000 at regular dealer net prices when entering into the Dealer Franchise Agreement. Cornwell does not require that you pay any franchise fee or other initial payment in order to become a Dealership.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–29)
What This Means (2025 FDD)
According to Cornwell Quality Tools's 2025 Franchise Disclosure Document, the initial franchise fee is $0. Cornwell Quality Tools does not require new dealers to pay a franchise fee or any other initial payment to become a Dealership. However, new dealerships are required to purchase an initial inventory of at least $60,000 at regular dealer net prices when entering into the Dealer Franchise Agreement.
While there is no initial franchise fee, prospective franchisees should be aware of other significant initial investments. These include an initial inventory purchase ranging from $60,000 to $65,000, a vehicle costing between $75,000 and $185,000, and a reserve of $20,000 to be applied against future inventory purchases during the first 13 weeks. There are also additional costs for training expenses estimated between $0 and $5,000, insurance ranging from $250 to $2,550, and additional funds of $15,000 to $35,000 for the first three months of operation.
In addition to the above costs, Cornwell Quality Tools requires a new dealer to invest in a computer system and software. The computer system is estimated to cost $3,500, while the software requires a $275 initial investment. The software also includes a one-time $100 set up fee, plus a monthly service contract fee of $50.00. These costs, combined with security and utility deposits, business licenses, and other prepaid expenses ranging from $500 to $2,500, contribute to the total initial investment for a Cornwell Quality Tools dealership.