Cornwell Quality Tools Franchise Cost, Revenue & Review 2026
- Investment
- $80K – $324K
- Disclosed sales
- $614K
- gross sales, not profit
- SBA charge-off
- Limited · 14 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cornwell Quality Tools is a mobile franchise selling professional-grade tools and equipment directly to mechanics, contractors, and industrial customers. Franchisees run a tool truck servicing accounts at shops and job sites, managing inventory and recurring sales.
FranchiseVerdict summary · 2026
A Cornwell Quality Tools franchise requires a total initial investment of $80K – $324K. Per the 2026 FDD, average unit revenue was $614K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $80K – $324K
- 10th pct Automotive
- Avg gross sales
- $614K
- 4th pct Automotive
- Royalty
- Not extracted
- Units
- 793
- 50th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $80K – $324K.
- RETURNSAverage unit revenue of $614K/year.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (127 opened, 129 closed) (Item 20).
- LEGAL38 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 15 name the franchisor itself. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cornwell Quality Tools Company
- CEO title
- President and Chief Executive Officer
- Robert A. Studenic
- 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
- CEO
- Robert A. Studenic
- Headquarters
- OH
- Founded
- 1919
- FDD year
- 2026
- States available
- 46
Can you afford it, and what does the money buy?
Entry cost runs 45% below the typical automotive franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $15K | $35K |
| Equipment, build-out, other | $65K | $289K |
| Total initial investment | $80K | $324K |
Source: Cornwell Quality Tools 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $80K – $324K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $35K
- Top 40% of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- No royalty fee
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 0.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% |
| Technology fee | $50 |
| Training fee | $5K |
| Transfer fee | $0 |
| Inventory (initial) | $60K – $65K |
| Total fee load | 0.0% of rev |
A 0.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 40% below the automotive norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Cornwell Quality Tools until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$227K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Cornwell Quality Tools unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $614K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue terciles plus weekly sales
- Sample size
- 669 franchisees
- vs category median 70 · large
- Range (low → high)
- $61K→$2.0MCited, not corroborated — printed on page 64 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $381K→$882K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $614K/year in gross sales. Revenue-to-investment ratio: 3.0x.
Fee burden
Total ongoing fee load of 0.0% — below the Automotive median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -2.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Cornwell Quality Tools Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 793
- Opened
- 127
- Last reporting year
- Closed
- 129
- Terminated
- 30
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -2.0%
- Net unit change over 3 years
- 3-yr CAGR
- -2.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 30
- Not renewed
- 0
- Transferred
- 25
- Reacquired
- 0
- Franchisor bought back
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.
Where the owners are · Item 20 owner list
100 current owners across 12 states.
- CA 35
- CO 35
- AZ 13
- AL 5
- CT 3
- AR 2
- FL 2
- DE 1
- NY 1
- OR 1
- SC 1
- TN 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 14 loans
- Limited SBA coverage: 14 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 14 loans
- 5-yr charge-off
- Limited · 14 loans
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 2
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 29.8%
- n=429 loans
- Jobs supported
- 15
- 1.0 per loan
- Lender concentration
- 29%
- top lender's share
Borrower mix: 21% went to startups / new businesses, 79% to established operators
Franchise vs independent — in other direct selling establishments, franchised businesses charge off at 29.8% vs 15.9% for independents — franchising is associated with 87% higher SBA default risk in this category.
Top lenders financing Cornwell Quality Tools franchisees
Showing 3 of 10 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Cornwell Quality Tools from SBA 7(a) FOIA data.
- Principal loss rate
- 14.7%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 8.09%
- Avg chargeoff amount
- $108K
- Lender concentration
- 28.6%
- Job velocity
- 1.0 per $100K
- NAICS benchmark
- 32.9%
- NAICS 454390
- Jobs supported
- 15
Top SBA lendersTop lender holds 29% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Northeast Bank | 4 | $550K | 100.0% |
| 2 | BayFirst National Bank | 2 | $300K | N/A |
| 3 | WesBanco Bank, Inc. | 1 | $75K | N/A |
| 4 | Comerica Bank | 1 | $85K | N/A |
| 5 | Cadence Bank | 1 | $100K | N/A |
| 6 | North Brookfield Savings Bank | 1 | $30K | 0.0% |
| 7 | The Huntington National Bank | 1 | $40K | 0.0% |
| 8 | Manufacturers and Traders Trust Company | 1 | $50K | N/A |
| 9 | First Pryority Bank | 1 | $90K | 0.0% |
| 10 | CenTrust Bank, A Division of SmartBiz Bank National Associat | 1 | $150K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| ILIllinois | 2 | 0 | -- |
| MIMichigan | 2 | 0 | 0.0% |
| MOMissouri | 2 | 2 | 100.0% |
| NMNew Mexico | 2 | 0 | -- |
| PAPennsylvania | 2 | 0 | -- |
| INIndiana | 1 | 0 | -- |
| MAMassachusetts | 1 | 0 | 0.0% |
| OKOklahoma | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-risk franchise with a shrinking network, significant litigation exposure, undisclosed profitability, and evidence of franchisee financial distress through aggressive collection actions.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two regulatory consent orders (Maryland 2010, Minnesota 2014) for franchising with expired registrations. Salinas class action settled $5.5M (California employee misclassification, concluded 2024). Felger and Hudson data breach cases pending (settlement in principle January 2025). Karrip counterclaim dismissed. Cornwell filed approximately 24 collection suit matters against former franchisees for unpaid inventory.
Largest disclosed settlement: $5,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cohen & Company, Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 references audited financial statements of Cornwell Quality Tools Company (Ohio corp) for FYs ended Dec 31, 2022, 2023, 2024 attached as Exhibit A, but the actual statements/figures and the CPA firm name are not contained in this disclosure text. Item 8 notes Cornwell derived $252,127,512.00 of its total revenue of $278,450,440.66 from required dealership purchases (product-sales revenue, not audited franchisor totals).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 64 / 100 verdict
- 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
Litigation case detail38 matters · Item 3
Litigation cases
The franchisor
Pending (3)
Cornwell Quality Tools Company v. Daniel Karrip, Mary Karrip, and DK Tool Sales, Inc.
pendingBrought by a franchisee · filed 2023-10-31 · Circuit Court for the County of Kent, Michigan · 23-08728-CZ
“Cornwell Quality Tools Company v. Daniel Karrip, Mary Karrip, and DK Tool Sales, Inc., Case No. 23-08728-CZ in the Circuit Court for the County of Kent, Michigan, was filed on October 31, 2023, by the Defendants as a Counterclaim to a Complaint brought by Cornwell on September 6, 2023, to confirm an arbitration award made in Cornwell’s favor against the Defendants on August 11, 2023.”Page 16 of the 2026 FDD, Item 3
Outcome:“The defendants filed an appeal from all of the Court’s rulings on January 23, 2024, which remains pending.”
James Felger v. The Cornwell Quality Tools Company
pendingThird-party plaintiff · filed 2023-09-13 · United States District Court for the Northern District of Ohio · 1:23-cv-01786
“James Felger v. The Cornwell Quality Tools Company, Case No. 1:23-cv-01786 in the United States District Court for the Northern District of Ohio, was filed on September 13, 2023.”Page 16 of the 2026 FDD, Item 3
Outcome:“The matters remain pending. However, a settlement in principle was reached as to both matters on January 28, 2025, to be paid entirely by Cornwell’s insurance carriers. The completion of the settlement remains pending.”
William Hudson v. The Cornwell Quality Tools Company
pendingThird-party plaintiff · filed 2023-09-28 · United States District Court for the Northern District of Ohio · 1:23-cv-01887
“William Hudson v. The Cornwell Quality Tools Company, Case No. 1:23-cv-01887 in the United States District Court for the Northern District of Ohio, was filed on September 28, 2023. The Complaints in both cases were brought by individuals for themselves and as the claimed representatives of putative defined classes of persons.”Page 16 of the 2026 FDD, Item 3
Outcome:“The matters remain pending. However, a settlement in principle was reached as to both matters on January 28, 2025, to be paid entirely by Cornwell’s insurance carriers. The completion of the settlement remains pending.”
Concluded (6)
Randy Salinas v. The Cornwell Quality Tools Company
settledBrought by a franchisee · filed 2019-10-10 · Superior Court for the County of Riverside, California; removed to the United States District Court for the Central District of California · RIC 1905144; 5:19-cv-02275-JGB
“Randy Salinas v. The Cornwell Quality Tools Company, Case No. RIC 1905144 in the Superior Court for the County of Riverside, California, was filed on October 10, 2019. Cornwell removed the case to the United States District Court for the Central District of California on November 27, 2019, where it was assigned Case No. 5:19-cv- 02275-JGB.”Page 15 of the 2026 FDD, Item 3
Outcome:“Cornwell denies all of the allegations of the Complaint but nevertheless recognized that it had some potential exposure and so entered into a settlement agreement, involving payments to the Class members and their counsel of $5.5 million, as a matter of prudent business judgment.” (page 16)
Eric Lange, et al. v. The Cornwell Quality Tools Company
dismissedBrought by a franchisee · filed 2015-05-01 · United States District Court for the Northern District of Ohio · 5:15-cv-00859-JRA
“Eric Lange, et al. v. The Cornwell Quality Tools Company, Case No. 5:15-cv-00859-JRA in the United States District Court for the Northern District of Ohio, was filed on May 1, 2015. The lawsuit was brought by the same nine former Cornwell dealers as individuals and as claimed representatives of the putative class of all former Cornwell dealers”Page 15 of the 2026 FDD, Item 3
Outcome:“Cornwell moved to dismiss the lawsuit on grounds of collateral estoppel on May 21, 2015. The motion was granted on December 31, 2015, and the lawsuit was dismissed.”
David Bachrach, et al. v. The Cornwell Quality Tools Company
dismissedBrought by a franchisee · filed 2011-10-21 · American Arbitration Association · 11 114 Y 01759 11
“David Bachrach, et al. v. The Cornwell Quality Tools Company, Case No. 11 114 Y 01759 11 in the American Arbitration Association, was filed on October 21, 2011. The Demand was brought by nine former Cornwell dealers as individuals and as claimed representatives of the putative class of all former Cornwell dealers”Page 15 of the 2026 FDD, Item 3
Outcome:“The arbitration was voluntarily dismissed by the claimants on May 18, 2015, without any payment or other consideration from Cornwell.”
David Bachrach, et al. v. The Cornwell Quality Tools Company
dismissedBrought by a franchisee · filed 2010-01-27 · Court of Common Pleas of Summit County, Ohio · 2010 01 0543
“David Bachrach, et al. v. The Cornwell Quality Tools Company, Case No. 2010 01 0543 in the Court of Common Pleas of Summit County, Ohio, was filed on January 27, 2010. The Complaint was brought by eight former Cornwell dealers as individuals and as claimed representatives of the putative class of all former Cornwell dealers terminated within four years of the filing of the Complaint.”Page 14 of the 2026 FDD, Item 3
Outcome:“The matter was voluntarily dismissed by the plaintiffs on May 6, 2015, without any payment or other consideration from Cornwell.” (page 15)
In the Matter of Cornwell Quality Tools Company
concludedGovernment or regulatory action · Securities Commissioner of Maryland · 2010-0375
“In the Matter of Cornwell Quality Tools Company (Maryland Case No. 2010-0375) On November 3, 2010, Cornwell entered into a Consent Decree with the Securities Commissioner of Maryland to resolve issues arising from entering into franchise agreements in Maryland even though the renewal of Cornwell's registration in 2008 had not been approved and thus had expired.”Page 14 of the 2026 FDD, Item 3
Outcome:“Cornwell paid a civil penalty of $10,000.00, offered the rescission of franchises entered into after the registration expiration and has implemented procedures to reduce the risk of future violations.”
In the Matter of The Cornwell Quality Tools Company
concludedGovernment or regulatory action · Minnesota Department of Commerce (Commissioner of Commerce of Minnesota) · FR1400020
“In the Matter of The Cornwell Quality Tools Company (Minnesota Department of Commerce Case No. FR1400020) On August 19, 2014, a Consent Order was issued against Cornwell by the Commissioner of Commerce of Minnesota. The Order resolved issues arising from Cornwell’s offering and entering into franchise agreements in Minnesota even though the renewal of Cornwell's registration in 2012”Page 14 of the 2026 FDD, Item 3
Outcome:“Cornwell paid a civil penalty of $2,000.00, offered the rescission of franchises entered into after the registration expiration and implemented procedures to reduce the risk of future violations.”
Status not stated in the filing (6)
Cornwell Quality Tools Company v. Cameron J. Balmain
Brought against a franchisee · filed 2024-06-18 · United States Bankruptcy Court, District of Massachusetts, Eastern Division · 24-11209
“Cornwell Quality Tools Company v. Cameron J. Balmain, United States Bankruptcy Court, District of Massachusetts, Eastern Division, Chapter 7 case filed 06/18/2024 (Case No. 24-11209).”Page 17 of the 2026 FDD, Item 3
Cornwell Quality Tools Company v. Jon W. Bachand and Laura B. Schultz
Brought against a franchisee · filed 2024-10-03 · American Arbitration Association · 01-04-0008-0655
“Cornwell Quality Tools Company v. Jon W. Bachand and Laura B. Schultz, American Arbitration Association case filed 10/03/2024 (Case No. 01-04-0008-0655).”Page 17 of the 2026 FDD, Item 3
Cornwell Quality Tools Company v. Raymond L. Brown, Angela D. Brown and Slappy Holdings LLC
Brought against a franchisee · filed 2024-05-03 · American Arbitration Association; 212th District Court, Galveston County, Texas · 01-24-0004-7532; 24-CV-1762
“Cornwell Quality Tools Company v. Raymond L. Brown, Angela D. Brown and Slappy Holdings LLC, American Arbitration Association case filed 05/03/2024 (Case No. 01-24- 0004-7532); 212th District Court, Galveston County, Texas, case filed 10/03/2024 (Case No. 24-CV-1762).”Page 17 of the 2026 FDD, Item 3
Cornwell Quality Tools Company v. Bruce M. Alvarado, Tiffany R. Alvarado and BT&N's Tools & Equipment, LLC
Brought against a franchisee · filed 2023-11-13 · American Arbitration Association; Court of Common Pleas, Summit County, Ohio; United States Bankruptcy Court, Northern District of Texas · 01-23-0005-1380; 2024-04-1703; 24-41711
“Cornwell Quality Tools Company v. Bruce M. Alvarado, Tiffany R. Alvarado and BT&N’s Tools & Equipment, LLC, American Arbitration Association case filed 11/13/2023 (Case No. 01-23-0005-1380); Court of Common Pleas, Summit County, Ohio, case filed 04/19/2024 (Case No. 2024-04-1703); United States Bankruptcy Court, Northern District of Texas, Chapter 13 case filed 05/14/2024 (Case No. 24-41711).”Page 17 of the 2026 FDD, Item 3
Cornwell Quality Tools Company v. Joseph A. Bribiescas
Brought against a franchisee · filed 2023-11-13 · American Arbitration Association; Court of Common Pleas, Summit County, Ohio; Superior Court of Maricopa County, Arizona · 01-23-0005-1381; 2024-03-1394; CV-2024-015471
“Cornwell Quality Tools Company v. Joseph A. Bribiescas, American Arbitration Association case filed 11/13/2023 (Case No. 01-23-0005-1381); Court of Common Pleas, Summit County, Ohio, case filed 03/28/2024 (Case No. 2024-03-1394); Superior Court of Maricopa County, Arizona, case filed 06/17/2024 (Case No. CV-2024-015471).”Page 17 of the 2026 FDD, Item 3
Cornwell Quality Tools Company v. Timothy R. Barker and Deanna Kauiohoolehua Barker
Brought against a franchisee · filed 2023-07-20 · American Arbitration Association; Court of Common Pleas, Summit County, Ohio; 116th District Court of Dallas County, Texas; Superior Court, County San Bernardino, California · 01-23-0003-2251; 2023-11-4354; DC-24-05808; CIV SB 2418172
“Cornwell Quality Tools Company v. Timothy R. Barker and Deanna Kauiohoolehua Barker, American Arbitration Association case filed 07/20/2023 (Case No. 01-23-0003- 2251); Court of Common Pleas, Summit County, Ohio, case filed 11/13/2013 (Case No. 2023-11-4354); 116th District Court of Dallas County, Texas, case filed 05/01/2024 (Case No. DC-24-05808 against Deanna Kauiohoolehua Barker);”Page 17 of the 2026 FDD, Item 3
This list shows 15 of the 38 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Territory type | No territory protection |
|---|---|
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 350 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 7 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Akron, Ohio (subject to state law) |
| Jury trial waiver | No |
| Governing law | OH |
| Litigation count | 38 |
View Item 3 litigation summary
Two regulatory consent orders (Maryland 2010, Minnesota 2014) for franchising with expired registrations. Salinas class action settled $5.5M (California employee misclassification, concluded 2024). Felger and Hudson data breach cases pending (settlement in principle January 2025). Karrip counterclaim dismissed. Cornwell filed approximately 24 collection suit matters against former franchisees for unpaid inventory.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 80 hrs
- Training location
- Cornwell corporate headquarters, Wadsworth, Ohio (or other location); OJT on-route with district manager
- Ongoing training
- Optional
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Ironman Business Network (IBN)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Ironman Business Network (IBN)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $80K – $324K. 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 $614K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Cornwell Quality Tools?
Cornwell Quality Tools is franchised by Cornwell Quality Tools Company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Cornwell Quality Tools FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cornwell Quality Tools FDD and qualifies whose outlets they describe.
What is Cornwell Quality Tools's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cornwell Quality Tools (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Cornwell Quality Tools franchise locations are there?
As of their most recent FDD filing, Cornwell Quality Tools has 793 total units in the United States, including 793 franchised units and 0 company-owned units. 127 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 B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.