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Description
Investment Icon

What Are the Initial Investment Requirements for a Cornwell Quality Tools Franchise?

To start a Cornwell Quality Tools franchise, you need to be prepared for a range of initial investment costs. The franchise fee is set at $5,000, which is a relatively low entry point compared to other franchises. However, total initial investments can vary significantly, ranging from $41,236 to $2,480,663. To ensure you are financially equipped, it is recommended to have cash reserves between $50,000 and $75,000 and a net worth between $250,000 and $500,000. This financial foundation is crucial for covering startup costs and operating expenses as you begin your journey as a franchisee.

Fees Icon

What Are the Ongoing Fees and Financial Expectations for Franchisees?

Once you are established as a Cornwell Quality Tools franchisee, you will need to manage ongoing financial obligations. The royalty fee is set at 5% of your gross revenue, which is a standard practice in the franchise industry. Additionally, there is a marketing fee of 0.5% to support brand promotion and customer outreach. Understanding these fees is essential for effective budgeting and financial planning. Franchisees can expect an average annual revenue of approximately $245,683 per unit, with a breakeven time of around 12 months and an investment payback period of about 24 months.

Revenue Icon

What Financial Performance Metrics Should You Consider?

The financial performance of a Cornwell Quality Tools franchise can provide valuable insights for potential franchisees. The average annual revenue per unit stands at around $245,683, with the lowest reported revenue at $196,755 and the highest reaching an impressive $250,650,874. It's important to note that the gross profit margin is approximately 27.07%, reflecting the profitability potential of the business. Understanding these metrics can help you gauge the viability of your investment and set realistic financial goals for your franchise operation.

Breakeven Icon

How Has the Cornwell Quality Tools Franchise Grown Over the Years?

Cornwell Quality Tools has shown steady growth in its franchise units over recent years. In 2019, there were 123 franchised units, which increased to 130 by 2021. However, in 2022, the company shifted focus, operating 15 corporate units while having no franchised units recorded. This transition may indicate a strategic decision to consolidate operations or focus on corporate-owned growth. Understanding the growth trajectory and focus of the franchise can help you assess its stability and future potential as an investment opportunity.

Cornwell Quality Tools Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$250,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$5,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

0.5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$41,236 - $2,480,663
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$50,000 - $75,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$23,117
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$245,683
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$250,650,874
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$196,755
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Automotive Franchises
Category icon A more specific division within the broader industry.

i Category:

Auto Parts
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Bob Studenic
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

667 seville road wadsworth,Ohio 44281
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1985
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Cornwell Quality Tools Company

Cornwell Quality Tools Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

145
The number of locations owned by independent franchisees.

Franchised Units i

130
The number of locations owned and run by the franchisor.

Corporate Units i

15
Units 2019 2020 2021 2022
Total Units 123 128 130 15
Net Change YoY 5 2 3
Franchised Units 123 128 130
Net Change YoY 5 2
Corporate Units 10 12 15
Net Change YoY 10 2 3
Investment About

Initial Investment

The Cornwell Quality Tools franchise offers a range of initial investment options, with a low end of $41,236 and a high end reaching $2,480,663. This variance allows aspiring franchisees to choose a financial commitment that aligns with their budget and business goals. The initial franchise fee is set at $5,000, making it accessible for those looking to enter the franchise market.

Potential About

Financial Requirements

To qualify for a Cornwell Quality Tools franchise, potential franchisees need to have a cash requirement of $50,000 to $75,000 and a net worth between $250,000 and $500,000. These financial prerequisites ensure that franchisees have the necessary resources to support their business operations and sustain growth.

Metrics About

Revenue Performance

The average annual revenue per unit for Cornwell Quality Tools is approximately $245,683, with a median of $245,683 as well. This strong revenue performance highlights the brand's potential for profitability. The highest reported annual revenue per unit is an impressive $250,650,874, showcasing the success of some franchisees within the network.

Fees About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months of operation, which is a favorable timeline for new business owners. Additionally, the investment payback period is estimated at 24 months, allowing franchisees to see a return on their initial investment relatively quickly compared to many other franchise opportunities.

Breakeven About

Franchise Growth

The Cornwell Quality Tools franchise has shown consistent growth in its number of franchised units, increasing from 123 units in 2019 to 130 units in 2021. This growth trajectory indicates a stable demand for the brand and suggests a positive outlook for future expansion in the franchise network.

Units About

Corporate Structure

Cornwell Quality Tools operates both franchised and corporate units. As of 2022, there are 15 corporate-owned units, which allows the company to maintain direct control over certain locations while supporting franchisees. This dual structure helps the brand to enhance operational efficiency and provide better support to its franchise partners.

Frequently Asked Questions

The initial investment for a Cornwell Quality Tools franchise ranges from $41,236 to $2,480,663, depending on various factors including location and operational setup.