What was the total advertising expense for Cornwell Quality Tools in 2022?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
20,451,381 | $ (773,260) | $ - | $ 19,678,121 |
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2022
| Cornwell Quality Tools Company | CQT Kennedy, LLC | Eliminations | Consolidated | |
|---|---|---|---|---|
| SALES Less: Dealer weekly volume incentives | $ 251,915,684 4,853,504 | $ 22,648,171 | $ (12,862,937) | $ 261,700,918 4,853,504 |
| Sales - Net | 247,062,180 | 22,648,171 | (12,862,937) | 256,847,414 |
| COST OF GOODS SOLD | 178,516,201 | 23,648,832 | (12,862,937) | 189,302,096 |
| Gross profit | 68,545,979 | (1,000,661) | - | 67,545,318 |
| EXPENSES | ||||
| Shipping and warehousing | 6,300,877 | 2,300 | 6,303,177 | |
| Selling | 21,791,074 | 646,761 | 22,437,835 | |
| General and administrative | 13,068,550 | 1,259,995 | - | 14,328,545 |
| Employee stock ownership plan contribution | 5,000,000 | - | - | 5,000,000 |
| Goodwill amortization expense | - | 848,375 | - | 848,375 |
| Total expenses | 46,160,501 | 2,757,431 | - | 48,917,932 |
| Income (loss) before financing operations | 22,385,478 | (3,758,092) | • | 18,627,386 |
| FINANCING OPERATIONS | ||||
| Revenues | 19,598,514 | - | - | 19,598,514 |
| Other financing income | 1,069,676 | 1,069,676 | ||
| Total financing income | 20,668,190 | - | - | 20,668,190 |
| Expenses | 7,213,203 | _ | · · | 7,213,203 |
| Income from financing operations | 13,454,987 | _ | _ | 13,454,987 |
| Income (loss) from operations | 35,840,465 | (3,758,092) | - | 32,082,373 |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | (239,390) | (8,261) | - | (247,651) |
| Interest income | 325,161 | - | 325,161 | |
| Other expense - Net | (65,670) | (200) | - | (65,870) |
| Other income (expense) - Net | 20,101 | (8,461) | _ | 11,640 |
| Income (loss) before taxes | 35,860,566 | (3,766,553) |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Cornwell Quality Tools's expenses for the year 2022 are detailed in the consolidated financial statements. These statements provide a breakdown of various expense categories, offering insight into where the company allocates its resources. Among these categories are shipping and warehousing, selling, general and administrative, employee stock ownership plan contributions, and goodwill amortization expense.
The provided table includes a breakdown of expenses for Cornwell Quality Tools and its subsidiary, CQT Kennedy, LLC, along with eliminations and consolidated totals. For the year 2022, the selling expenses, which can include advertising and marketing costs, amounted to $21,791,074 for Cornwell Quality Tools and $646,761 for CQT Kennedy, LLC, resulting in a consolidated selling expense of $22,437,835. However, the FDD does not explicitly list "advertising expense" as a separate line item.
Therefore, while the FDD details various expense categories, it does not specifically isolate advertising expenses. A prospective franchisee would need to request a more detailed breakdown of the "Selling" expenses from Cornwell Quality Tools to determine the exact amount spent on advertising in 2022. This information is crucial for understanding the company's marketing efforts and how they support their dealer network.