Under what conditions does the agreement with Cornwell Quality Tools continue?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
r must meet the requirements set forth below. To the extent the requirements of this paragraph 1 conflict with other provisions of this DSA Note, the requirements of this paragraph shall prevail.
- (c) Dealer must (1) Remain a Cornwell Dealer with average purchases of not less than $7,700 per week for at least 36 months from the date that Dealer first makes sales ("Start Date") or (2) Introduce at least 3 new dealers to Cornwell within 36 months of the Start Date. Dealer must further comply with all of the requirements of this DSA Note and the Dealer Agreement, including but not limited to making the weekly payments towards the principal amount of the Note set forth below.
- (d) So long as Dealer maintains Franchise Developer Dealer status, the payment of the time-price charges equivalent to interest on the principal amount of this DSA Note is waived. Dealer must however make weekly payments as described in Section 2 below towards the principal amount of the DSA Note. Following
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the franchise agreement can continue under specific conditions, particularly for dealers participating in the Franchise Developer program. To maintain this status and benefit from a waiver of time-price charges (equivalent to interest) on their DSA Note, a dealer must meet certain requirements.
Specifically, a Cornwell Quality Tools dealer must either maintain an average weekly purchase volume of at least $7,700 for 36 months from their start date, or introduce at least three new dealers to Cornwell within the same 36-month period. Additionally, the dealer must comply with all other requirements outlined in both the DSA Note and the Dealer Agreement, including making the stipulated weekly payments toward the principal amount of the DSA Note.
If the Cornwell Quality Tools dealer meets these conditions for each 52-week period after payments have commenced, they can continue to have the time-price charges waived, provided they remain compliant with all aspects of the Dealer Agreement and the DSA Note. This creates an incentive for dealers to achieve high sales volumes or actively recruit new franchisees to the Cornwell Quality Tools system.