What power does Cornwell Quality Tools have to send notices?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
The Dealer hereby irrevocably appoints Cornwell as its true and lawful attorney-in-fact, coupled with an interest, with full power to send the notices described above, to take possession of and endorse in the name of Dealer any instruments or documents received in payment of all or part of the Accounts, to collect, sue for and give a quittances for monies due on the Accounts, and to withdraw any claims, suits or proceedings pertinent thereto, or arising out of the assignment of the Accounts.
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, Cornwell Quality Tools has the power to send notices related to the franchisee's accounts. Specifically, the Dealer appoints Cornwell as their attorney-in-fact, granting Cornwell the authority to send notices concerning the accounts.
This appointment allows Cornwell Quality Tools to notify individuals liable for payments to the Dealer's accounts about Cornwell's security interest in those accounts. Cornwell can direct these individuals to make payments directly to Cornwell. Additionally, Cornwell is authorized to take possession of and endorse any instruments or documents received as payment, collect monies due, and handle any related claims or legal proceedings.
This arrangement provides Cornwell Quality Tools with significant control over the accounts receivable, ensuring that Cornwell can protect its financial interests. For a potential franchisee, this means that Cornwell has the legal right to manage and collect payments directly from the franchisee's customers under certain circumstances, which could impact the franchisee's day-to-day operations and cash flow.