Can the Reserve requirement be waived by Cornwell Quality Tools?

According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the requirement to establish a Reserve can be waived by Cornwell Quality Tools. The Reserve is an initial amount, estimated at $20,000, needed to carry customer time payment accounts, which are accounts receivable from customers. This Reserve is applied against the further purchase of inventory during the first 13 weeks of the dealership.

Unless Cornwell Quality Tools waives this requirement, a new dealership must establish this Reserve. If the franchisee meets normal credit requirements, Cornwell Quality Tools will finance up to $20,000 of the Reserve. The Reserve is applied to the franchisee's open account as a credit against further inventory purchases, with a weekly amount equal to 65% of the increase in the documented Time Payment Account balance over the previous high balance.

The Reserve is maintained by Cornwell Quality Tools until it is exhausted or the dealership agreement is terminated, whichever comes first. If the Reserve is funded with a combination of cash and notes, the cash deposited will be applied first against further inventory purchases. Any remaining funds in the Reserve will be refunded if paid in cash or credited to the franchisee's open account or as a voluntary pre-payment under the note, if the Reserve has not been fully used upon termination of the dealership agreement. When established, the Reserve is credited by Cornwell Quality Tools with a lump-sum amount.