Cornwell Quality Tools Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$79,525 - $323,825
Min Cash Required
$15,000
Total US Locations
793
Business Summary
Cornwell Quality Tools Company operates mobile tool dealerships that specialize in selling professional-quality mechanics' hand tools and related equipment. Franchisees run their business from a "rolling tool store" truck or van, purchasing products from Cornwell Quality Tools Company and reselling them directly to individual mechanics and various businesses. Their primary customers include auto and truck dealerships, independent repair shops, and construction contractors within an assigned geographic territory.
Corporate History
Cornwell Quality Tools Company was incorporated in Ohio in 1919, starting as a predecessor in Cuyahoga Falls and later moving operations to Mogadore. The company was purchased by a group of investors in 1957, with the Moeller family gaining full ownership by 1965. Cornwell Quality Tools Company has been selling products to independent dealerships for about 60 years and formalized its program into a franchise model for dealers joining after December 31, 1996. By December 31, 2003, Cornwell Quality Tools Company operated exclusively with franchised dealerships. In 2016, Cornwell Quality Tools Company acquired Kennedy Manufacturing, which began producing toolboxes and accessories for Cornwell Quality Tools Company dealers in 2017.
Financial Overview
Investment Range
$79,525 - $323,825
Minimum Cash Required
$15,000
Equipment Costs (Low)
$78,500
Equipment Costs (High)
$193,500
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Cornwell Quality Tools Company appears to be in a strong financial position with substantial working capital. Its consolidated balance sheet as of December 31, 2024, shows current assets of over $118 million against current liabilities of approximately $20.9 million, indicating robust liquidity. The company reported a net income of over $24.6 million for the year 2024, and cash and cash equivalents stood at over $37.8 million. While Cornwell Quality Tools Company recently settled a class action lawsuit for $5.5 million, this amount was accrued in 2023 and paid in 2024. Additionally, two pending data breach lawsuits are expected to be covered by the company's insurance carriers. The auditors have expressed an unqualified opinion on the financial statements, with no substantial doubt raised about Cornwell Quality Tools Company's ability to continue as a going concern.
Financing Details
Cornwell Quality Tools Company offers extensive financing options for its franchisees. For the initial inventory purchase, Cornwell Quality Tools Company provides loans up to $80,000 for qualified applicants, with a 14.24% annual interest rate over a maximum of 72 months, requiring a personal guarantee and a security interest in inventory and accounts receivable. Military veterans can qualify for an interest-free initial inventory loan under specific conditions. Additionally, Cornwell Quality Tools Company offers specialized programs like the Franchise Developer and Special Representative programs, which provide interest-free inventory financing (up to $60,000 or $65,000 respectively, with additional reserves possible) through loan forgiveness, tied to maintaining high purchase levels or recruiting new dealers. These programs also offer immediate qualification for Tech-Credit and volume discounts, along with open account credits for additional inventory based on performance. Beyond franchisee-level financing, Cornwell Quality Tools Company offers the Tech-Credit program to enable franchisees to provide customer financing for high-value merchandise, where customer promissory notes are assigned to Cornwell. Other programs include Deferred Billing for inventory purchases and Cornwell Extended Box (CBX) Financing for toolboxes, both with interest-free short-term payment plans and varying credit limits.
Performance Metrics
Total US Locations
793
Franchised Units
793
Corporate Units
0
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
33
Litigation Summary
Cornwell Quality Tools Company has a history of regulatory actions, including consent decrees in Maryland (2010) and Minnesota (2014) related to expired registration. In a class action lawsuit filed in California in 2019 (Randy Salinas case), former dealers claimed to be employees and were denied various protections and benefits. A class was certified in October 2022, and Cornwell Quality Tools Company settled the case for $5.5 million, which was approved in September 2024 and distributed in December 2024. Cornwell Quality Tools Company is currently involved in two pending class action lawsuits (James Felger and William Hudson cases, both filed in September 2023) in Ohio regarding a data breach that occurred in September 2022. A settlement in principle was reached in January 2025, to be covered by insurance. A counterclaim was filed against Cornwell Quality Tools Company in Michigan in October 2023 (Daniel Karrip case) by former dealers alleging damages; Cornwell's motion to dismiss this counterclaim was granted in January 2024, but an appeal is pending. Additionally, Cornwell Quality Tools Company initiated 29 collection suits against former franchisees in the last fiscal year (2024) for unpaid tool purchases, many of which are ongoing or recently filed.
Bankruptcy History
Cornwell Quality Tools Company has no bankruptcy history to disclose.
Agreement Terms
Training & Support Program
Franchisor Assistance
Cornwell Quality Tools Company provides comprehensive support to its franchisees both before and after opening. For pre-opening assistance, Cornwell Quality Tools Company surveys the territory, approves and sells initial inventory, approves the franchisee's truck or van, authorizes trademark use, and helps with financing. Franchisees undergo at least 40 hours of mandatory classroom training covering essential business procedures, computer systems, and customer relations. After opening, Cornwell Quality Tools Company offers two weeks of free on-site training with a district manager who provides advice on merchandising, sales, collections, and record-keeping, among other areas. District managers also provide continuous supervision and assistance. Franchisees receive an "Operations Guide" and can attend optional conferences. For technology, Cornwell Quality Tools Company sells required computer hardware at cost, offering a $1,500 credit and a three-year limited warranty. Franchisees must license the "Ironman Business Network (IBN)" software for a setup and monthly fee, which helps monitor their business. Cornwell Quality Tools Company also extends product warranties to customers, including a limited lifetime warranty on its own manufactured tools. Marketing support includes promotional literature and catalogs.
Initial Training Hours
120
Training Location
Corporate offices in Wadsworth, Ohio, and on the franchisee's route
Ongoing Support
After opening, Cornwell Quality Tools Company franchisees receive continuous supervision, assistance, and services from a district manager who provides advice, support, and coordinates meetings with other dealers and vendors. Franchisees also have access to optional conferences and seminars that offer business and product information. Additionally, Cornwell Quality Tools Company provides 24/7 on-call technical support for the Ironman Business Network (IBN) software and hardware, with targeted response times for error reporting.
Franchise Requirements
Ideal Candidate Profile
Cornwell Quality Tools Company seeks individuals who are dedicated, hardworking, and committed to full-time effort (often exceeding 60 hours per week initially) in operating their mobile tool dealership. Ideal candidates possess a strong understanding of professional mechanics' needs, detailed product knowledge of tools, and excellent interpersonal skills to build customer loyalty and drive sales. The operator must be the owner, actively involved in the direct sales of Cornwell Quality Tools Company products within their assigned territory.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Cornwell Quality Tools Company territories are assigned a specific geographic area with a minimum of 350 potential customers.
Staffing Notes
Cornwell Quality Tools Company requires that the individual owner who is primarily responsible for the dealership (the Operator) personally engage full-time in selling Cornwell products. Franchisees are not permitted to hire employees or independent contractors to fulfill this primary operating obligation, even if they own a second franchise.