Cornwell Quality Tools Franchise Cost, Revenue & Review 2026
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. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 14.3% charge-off rate across 14 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $80K – $324K
- 10th pct Automotive
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 793
- 50th pct Automotive
- SBA charge-off
- 14.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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.
- RETURNSItem 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).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better). SBA loan charge-off rate of 14.3% across 14 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL30 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
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 78% 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
- Top 40% of category vs category
- 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% of gross sales |
| Technology fee | $50 |
| Training fee | $5K |
| Transfer fee | $0 |
| Inventory (initial) | $60K – $65K |
| Total fee load | 0.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Cornwell Quality Tools did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Cornwell Quality Tools unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
63%
Above the 30–60% band. Verify revenue is per-unit average
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
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).
- Item 19 type
- gross revenue terciles plus weekly sales
- Sample size
- 669
- vs category median 70 · large
- Range (low → high)
- $61K→$2.0M
- 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.
Fee burden
Total ongoing fee load of 0.0% — below the Automotive average of 9.3%.
Disclosure
Item 19 reports gross revenue terciles plus weekly sales rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Cornwell Quality Tools Compares
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
- 99
- 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
3-year detail · Item 20
- Opened (3yr)
- 127
- Closed (3yr)
- 99
- Terminated (3yr)
- 30
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 25
- Reacquired (3yr)
- 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.
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)
- 85.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 2
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 29.8%
- brand beats franchise avg ↓
- 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.
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.
What could kill this investment?
SBA loans charge off at 14.3% — 11% below the 16.0% national norm, i.e. lower lender-observed risk.
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)
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)
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 58 / 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
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 | none |
|---|---|
| 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 | 30 |
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
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 $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?
Cornwell Quality Tools does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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?
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 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 58 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.