What were the write-offs for Cornwell Quality Tools in 2024?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
gate, based upon the December 31, 2023, valuation from the Appraiser. The fair value as of December 31, 2024, is subject to change upon the final valuation from the Appraiser.
ESOP contribution expense was $5,000,000 in 2024 and $5,700,000 in 2023.
13. LITIGATION
The Company was the defendant in a class action lawsuit, in the state of California, related to employment labor laws. During 2023, a settlement agreement was reached, and the Company agreed to pay $5,500,000. The settlement was paid out in December 2024. The Company accrued the settlement amount which is included in other income (expense) within the consolidated statement of operations at December 31, 2023. In addition, the Company is involved in other legal proceedings which arise in the ordinary course of business. Management, after consultation with the Company's legal counsel, believes that these matters will not have a material impact on the financial condition, results of operations, or cash flows of the Company.
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, information regarding specific write-offs for Cornwell Quality Tools in 2024 is not explicitly detailed. However, the document does provide some financial context. For example, the income tax effect increased the provision for income taxes by $540,500 in 2023 and $685,000 in 2022. Additionally, in 2023, Cornwell Quality Tools reached a settlement agreement in a class action lawsuit and agreed to pay $5,500,000, which was paid out in December 2024. The company accrued the settlement amount which is included in other income (expense) within the consolidated statement of operations at December 31, 2023. The ESOP contribution expense was $5,000,000 in 2024 and $5,700,000 in 2023. Purchases from the Company's two largest suppliers accounted for approximately 31% and 30% of purchases during 2024 and 2023, respectively.
To gain a comprehensive understanding of Cornwell Quality Tools' financial performance, prospective franchisees should consult the consolidated financial statements and accompanying notes within the FDD. These statements provide a detailed overview of the company's assets, liabilities, equity, revenue, and expenses. Understanding these statements can help potential franchisees assess the financial health and stability of Cornwell Quality Tools.
To obtain specific details on write-offs, it is recommended that prospective franchisees directly ask Cornwell Quality Tools for clarification. This inquiry should include a request for a breakdown of all write-offs recorded in 2024, along with an explanation of the nature and reasons for these write-offs. Understanding these figures is crucial for making an informed investment decision.