Can Cornwell Quality Tools waive a franchisee's default?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| f. Termination by Cornwell with cause | Section 13 | Cornwell may terminate if you default in any obligation under the Franchise Agreement. |
| g. “Cause” defined – defaults which can be cured | Section 13 | You have thirty days to cure default due to non-payment, failure to maintain inventory purchase level or other reasons not set forth in subsection h below. Cornwell may agree to waive any default. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–63)
What This Means (2025 FDD)
According to Cornwell Quality Tools's 2025 Franchise Disclosure Document, Cornwell Quality Tools may agree to waive a franchisee's default. Specifically, if a franchisee defaults due to non-payment or failure to maintain inventory purchase levels, they typically have thirty days to cure the default.
However, the FDD also states that no action or failure to act on the part of Cornwell Quality Tools will operate as a waiver of the subsequent right to terminate the franchisee, unless expressly stated in writing. This means that any waiver of a default must be explicitly documented in writing to be effective.
This provision is important for prospective franchisees because it highlights that while Cornwell Quality Tools has the discretion to waive a default, they are not obligated to do so. Furthermore, any agreement to waive a default must be in writing to be legally binding, protecting both the franchisee and Cornwell Quality Tools by ensuring clarity and preventing misunderstandings. Franchisees should ensure they understand the conditions under which a default can occur and the process for seeking a waiver, and to obtain any waiver in writing.