Cornwell Quality ToolsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Cornwell Quality Tools franchise requires a total initial investment of $174K – $321K. Per the 2026 FDD, average unit revenue was $625K[2]. SBA 7(a) loans show a 14.3% charge-off rate across 14 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $174K – $321K
- 21st pct Automotive
- Avg gross sales
- $625K
- 5th pct Automotive
- Royalty
- N/A
- Units
- 811
- 38th pct Automotive
- SBA default
- 14.3%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1996. Systems this mature have refined operations and brand recognition.
38 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $174K – $321K including a $0 franchise fee.
- Average unit revenue of $625K/year (median $580K).
- Verdict C (Average) with a risk score of 63/100. SBA loan charge-off rate of 14.3% across 14 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 38 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Cornwell Quality Tools Company
- Incorporated in
- OH
- HQ
- 667 Seville Road, Wadsworth, Ohio 44281
- Auditor
- Cohen & Company, Ltd.
- Audited financials
- Franchisor revenue
- $287.1M
- vs $283.5M prior year
Overview
About
Cornwell Quality Tools franchisees operate as tool dealers, selling professional-grade tools and equipment to mechanics, contractors, and industrial customers. Day-to-day operations involve managing inventory, servicing customer accounts (often at jobsites), handling tool rentals/purchases, and managing cash flow through sales commissions. The business model appears heavily dependent on franchisor-supplied inventory financed by franchisees.
- CEO
- Robert A. Studenic
- Headquarters
- OH
- Founded
- 1919
- FDD year
- 2026
- States available
- 46
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $15K | $35K |
| Equipment, build-out, other | $159K | $286K |
| Total initial investment | $174K | $321K |
Source: Cornwell Quality Tools 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$119K
19.0% margin
Unlevered ROIC
44%
EBITDA / total invested capital
Payback
28 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $174K – $321K
- Better than avg vs category
- Liquid capital req'd
- $15K – $35K
- Better than avg vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- None
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $0 |
Financial Performance
- Avg gross sales
- $625K
- Per unit, per year
- Median gross sales
- $580K
- Item 19 type
- Average Total Completed Business
- Sample size
- 699 units
- vs category median 70 · large
- Range (low → high)
- $49K→$2.1M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
vs Automotive averages
How Cornwell Quality Tools Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 811
- Opened
- 114
- Last reporting year
- Closed
- 96
- Turnover rate
- 11.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +2.3%
- Net unit change last year
- 3-yr CAGR
- +2.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 21
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $1.5M
- Median loan
- $113K
- 50th percentile
- Charge-off rate
- 14.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 60.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Cornwell Quality Tools's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk franchise with a shrinking network, significant litigation exposure, undisclosed profitability, and evidence of franchisee financial distress through aggressive collection actions.
Audited financials (Item 21)
Yes · Cohen & Company, Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 63 / 100 rating
- 01MINORShrinking franchise system with only 2.3% YoY growth and 811 units suggests mature/declining network
- 02MINOR23 collection suits by franchisor against former franchisees indicates systemic cash flow problems and potential predatory inventory practices
- 03MINORMultiple class action lawsuits regarding dealer misclassification under labor laws create legal exposure and suggest franchisor control disputes
- 04MEDNo disclosed average net income despite $625K average revenue makes ROI impossible to validate
- 05MINORZero franchise fee raises questions about franchisor's revenue model and financial sustainability
- 06MINORUnprotected territory with no mention of exclusivity creates direct competition risk from other franchisees
- 07MINORRegulatory actions in Maryland and Minnesota regarding franchise registration renewals suggest compliance violations
- 08HIGHData breach litigation indicates inadequate cybersecurity and potential customer/franchisee exposure
- 09MINORUnknown franchise term creates uncertainty around long-term investment protection
- 10MINORDeclining or stagnant unit growth combined with collection actions suggests franchisees are struggling
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Territory type | geographic |
|---|---|
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 38 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 80 hrs
- POS system
- lronman Business Network (IBN)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: lronman Business Network (IBN)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cornwell Quality Tools · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cornwell Quality Tools franchise?
The total investment to open a Cornwell Quality Tools franchise ranges from $174K – $321K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cornwell Quality Tools franchise owners earn?
According to Item 19 of the Cornwell Quality Tools FDD, the average gross sales per unit is $625K. The median is $580K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Cornwell Quality Tools's franchise failure rate?
Based on SBA 7(a) loan data, Cornwell Quality Tools has a charge-off rate of 14.3% across 14 loans, meaning 14.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cornwell Quality Tools franchise locations are there?
As of their most recent FDD filing, Cornwell Quality Tools has 811 total units in the United States, including 809 franchised units and 0 company-owned units. 114 new units were opened in the latest reporting year.
Is Cornwell Quality Tools a good franchise to buy?
FranchiseVerdict rates Cornwell Quality Tools as a C-grade franchise with a risk score of 63 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.