What are the requirements for modifying the Cornwell Quality Tools franchise agreement?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 7 - The Franchise Agreement may only be modified in writing by both parties. However, Cornwell reserves the right to establish the prices and terms at which it will sell to dealers and repurchase inventory from them, in its sole discretion.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–63)
What This Means (2025 FDD)
According to the 2025 Cornwell Quality Tools Franchise Disclosure Document, the franchise agreement can only be modified in writing, and the modification must be signed by both Cornwell Quality Tools and the franchisee. This requirement ensures that any changes to the original agreement are formally documented and agreed upon by both parties, protecting the interests of both the franchisor and the franchisee.
However, Cornwell Quality Tools retains the right to unilaterally establish the prices and terms at which it will sell to dealers and repurchase inventory from them. This means that while other aspects of the agreement require mutual written consent to modify, Cornwell Quality Tools has sole discretion over pricing and inventory repurchase terms.
The table in Item 17 of the FDD also summarizes the modification of the agreement, stating that modifications can only be made in writing and must be signed by both Cornwell Quality Tools and the franchisee. This reiterates the formal requirement for any changes to the franchise agreement, ensuring clarity and mutual consent.