What is the range for the estimated initial investment for a new Cornwell Quality Tools dealership?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
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Total: $79,525 to $323,825 for convertees; $174,525 to $318,825 for new dealerships.
These figures are based on Cornwell's over 60-year experience in offering dealerships in the mobile tool industry and may vary based upon your experience in the mobile tool industry, and your personal financial situation.
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 be
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–29)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the estimated initial investment for a new dealership ranges from $174,525 to $318,825. This total includes several key components, such as the initial inventory purchase, which Cornwell requires to be at least $60,000, and the cost of a vehicle, estimated between $75,000 and $185,000.
Prospective franchisees should note that this investment also includes a mandatory reserve of $20,000 to be used for further inventory purchases within the first 13 weeks. Additionally, there are costs associated with training expenses, computer systems, software, insurance, and additional funds needed to cover personal and business expenditures during the initial three months of operation. These figures are estimates based on Cornwell's experience and can vary depending on individual circumstances and financial situations.
It is important for potential Cornwell Quality Tools dealers to carefully consider all these factors and ensure they have sufficient capital to cover not only the initial investment but also ongoing operational costs. The FDD advises that the figures may vary based upon the franchisee's experience in the mobile tool industry and their personal financial situation. Reviewing each element of the investment and planning accordingly is crucial for a successful launch.
Furthermore, the document emphasizes that certain expenditures, such as those for equipment, fixtures, and computer systems, are typically non-refundable, highlighting the importance of making informed decisions about these investments. The cost of a suitable truck or van accounts for a significant portion of the initial investment, and the range depends on whether the vehicle is new or used, as well as its condition and features.