When is the vehicle payment due for a Cornwell Quality Tools dealership?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Method of Payment | When Due | To Whom Made | |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $-0- | N/A | N/A | N/A |
| Training Expenses (2) | $0- | As | Prior to | Third-Parties |
| $5,000 | Incurred | start | ||
| Real Estate (3) | $-0- | N/A | N/A | N/A |
| Initial Inventory (4) | $60,000 - $65,000 | Lump Sum/ Note | When invoiced | Cornwell Tools |
| Vehicle (5) | $75,000 - $185,000 | Lump Sum/ Down Payment | Upon delivery | Owner/Leasing Company |
| Insurance (6) | $250 - $2,550 | Lump Sum | As premium payments become due | Insurance Company |
| Additional Funds – Three | $15,000 - | Lump | Prior to | Dealer’s Business |
| Months (7) | $35,000 | Sum | start | Account |
| Equipment/Clothing/ Fixtures/Other Fixed Assets (8) | $0 - $5,000 | As Incurred | As ordered | Supplier |
| Reserve (9) | $20,000 | Lump Sum | Prior to start | Cornwell Tools |
| Computer System (10) | $3,500 | Lump Sum | Prior to start | Cornwell Tools and Vendor printer and wireless card |
| Computer Software (11) | $275 | Lump Sum | Prior to start | $100 to Cornwell Tools for start-up costs and $175 for credit card servicing vendor software |
| Security & Utility Deposits/Business Licenses/Other Prepaid Expenses (12) | $500- $2,500 | As Incurred | Prior to start | Third-Parties |
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 vehicle payment is due upon delivery of the vehicle, whether the franchisee chooses to purchase or lease. The estimated cost for the vehicle ranges from $75,000 to $185,000. Cornwell Quality Tools has a Truck Leasing Program with Trans Lease, Inc., where participating dealerships authorize Trans Lease to make direct weekly deductions from their checking account via Automatic Clearing House (ACH).
For franchisees participating in the Truck Leasing Program, payments are made weekly via ACH deduction. Failure to maintain sufficient funds or withdrawing ACH authority constitutes a default under the lease. Cornwell Quality Tools recommends vehicle sellers or lessors but does not mandate a specific source. The franchisee is responsible for vehicle expenditures, which are typically non-refundable, and Cornwell Quality Tools has no control over refunds.
Prospective Cornwell Quality Tools franchisees should consider the significant investment required for a vehicle and the ongoing payment obligations. Those opting for the leasing program must ensure they maintain sufficient funds for weekly ACH deductions to avoid defaulting on the lease. It is also important to note that vehicle expenditures are generally non-refundable, so careful consideration should be given to the choice of vehicle and financing options.