Cornwell Quality Tools
Date of Incorporation: 1919
Franchising Since: 1996
Address: California
Description: Cornwell Quality Tools has manufactured and sold professional-quality mechanics hand tools and related equipment since 1919. Cornwell Quality Tools distributes its products primarily by selling to dealer, who will sell directly from a "rolling tool store" van, primarily to mechanics, service managers and owners of auto and truck dealerships, motorcycle dealerships, fleet operations, construction and equipment contractors, independent repair shops, service stations, and body shops in a non-exclusive territory for which the franchisee is primarily responsible.
Franchise Offer: Cornwell Quality Tools requires a new dealer to purchase an initial inventory of at least $35,000 at regular dealer net prices when entering into a Dealer Franchise Agreement. Cornwell Quality Tools must approve the initial inventory. New dealers who have been in the tool business previously and already have a suitable inventory and an approved vehicle will only be required to purchase an initial inventory of $10,000 from Cornwell Quality Tools. The franchisee must also establish a Reserve with Cornwell Quality Tools in the amount of $12,000, to be applied against the further purchase of inventory during the first 26 weeks of the dealership.
Financial Assistance: The franchisor offers some financing. For more information, refer to the FDD/ UFOC for Cornwell Quality Tools.
| Item Financed (Source) |
Amount Financed |
Down Payment |
Term (Yrs) |
APR % |
Weekly Payment |
Security Required |
Liability Upon Default |
|---|---|---|---|---|---|---|---|
| Initial Inventory Purchase |
Up to $42,000 |
$5,000 Minimum |
208 weeks |
9.99 |
Up to $245.14 By ACH automatic payment deduction |
Inventory, Accounts Receivables, Personal Guarantee |
Loss of Franchise, Attorney's Fees and Costs, Cost of Collection, Cost of Repossession |
| Cornwell Tech-Credit Customer Financing |
Up to $11,500 per Customer |
None |
Up to 4 yrs |
19.99 | $10 per week minimum |
Products being financed |
Attorneys Fee's and Costs, Cost of Collection, Cost of Repossession; Dealer suspended from Tech-Credit program |
| Deferred Billing |
Up to $8,000 |
None |
10 Weeks |
None |
1/10 of Initial Balance of Deferred Invoices |
None |
Loss of Franchise, Attorney's Fees and Costs, Cost of Collection |
| Cornwell Box Extended (CBX) |
Up to $5,000 |
None |
20 Weeks |
None | 1/20 Initial Balance of CBX Invoices |
None | Loss of Franchise, Attorney's Fees and Costs, Cost of Collection |
Training and Assistance: The franchisor will provide at least 31 hours of mandatory initial classroom training. The new Dealer Training Program will include classroom instruction on basic business procedures, computer setup, MM1 setup, customer relations, product warranty/repair, Cornwell CDL and Dealer Business System.
During the operation of the franchise business, Cornwell will provide two weeks free on-site training to the franchisee through a district manager who will work directly with the franchisee, giving advice, support and recommendations
Territory: The franchisee will be assigned a specific geographic territory by Cornwell Quality Tools that is designed to allow for sales growth. The franchisee does not receive an exclusive territory. The franchisee may therefore face competition from other franchisees or from other channels of distribution or competitive brands that Cornwell Quality Tools control. However, Cornwell Quality Tools has a policy of entering into an agreement with only one dealer for any territory.
Term of Agreement and Renewal: There is no set term for the franchise agreement and therefore no renewal term or renewal fee. To terminate, the franchisee must give 30 days notice.
Obligations and Restrictions: If the franchisee meets the merchandise purchase requirements, Cornwell Quality Tools does not restrict the type of goods or services that the franchisee may offer. The franchisee must participate personally in the direct operation of the franchise business.
Total Number of Units: Total number of franchised units for 2007: 584
Investment Table:
Ongoing Fees: Cornwell Quality Tools does not require that the franchisee pay any other recurring or isolated fees or payments, including royalties, service fees, training fees, lease payments or advertising fees or charges.
Initial Investment:
| Name of Fee |
Low |
High |
|---|---|---|
| Initial Franchise Fee |
$10,000 |
$35,000 |
| Training Expenses |
$0 |
$1,000 |
| Real Estate |
$0 |
$0 |
| Initial Inventory |
$10,000 |
$50,000 |
| Vehicle |
$25,000 |
$75,000 |
| Insurance |
$250 |
$250 |
| Additional Funds -Three Months |
$10,000 |
$30,000 |
| Equipment/ Fixtures /Other Fixed Assets |
$0 |
$5,000 |
| Reserve |
$12,000 |
$20,000 |
| Computer System |
$600 |
$2,500 |
| Computer Software |
$845 |
$1,500 |
| Security & Utility Deposits/ Business Licenses/Other Prepaid Expenses |
$100 |
$7,500 |
| Total for Convertees: |
$58,795 |
$192,750 |
| Total for new dealers: |
$83,795 |
$192,750 |
The above information has been taken from the UFOC/FDD of Cornwell Quality Tools.
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