Who bears the costs of obtaining and maintaining the Technology System for a Red Wagon Club franchise?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| System according to Franchisor standards and specifications, Franchisee will have sole and complete | |
|---|---|
| responsibility for acquiring, operating, maintaining and upgrading: (1) the Technology System; (2) the | |
| connectivity of Franchisee Technology System; and (3) third-party interfaces between the Technology | |
| System and Franchisor and any third party’s computer system. Franchisee will have sole and complete | |
| responsibility for any and all consequences if the Technology System is not properly operated, maintained, | |
| and upgraded, including as required under Section 9.F. | |
| Franchisee may be required to license, and sign a software license agreement regarding, certain | |
| --- | --- |
| proprietary software as part of our requirements for the Technology System. Franchisor and its affiliates | |
| may charge Franchisee an initial and recurring fee for any proprietary software or technology that | |
| Franchisor or its affiliates license to Franchisee and for other maintenance, support, and technology | |
| development services that Franchisor or its affiliates provide (a “Technology Fee”). Franchisor reserves | |
| the right to increase the Technology Fee to reflect changes in the costs and availability of technology, | |
| provided that the Technology Fee may not be increased by more than $500 in any calendar month of the | |
| Term. Franchisor may also require that Franchisee pay Franchisor for software and other technology that | |
| Franchisee receives through Franchisor from third-party providers. Franchisee will have sole and complete | |
| responsibility for the manner in which Franchisee’s Technology System interfaces at Franchisor’s specified | |
| levels of connection speed with Franchisor’s and any third party’s computer system and any and all | |
| consequences if the Technology System is not properly operated, maintained, and upgraded. | |
| The Technology System may give Franchisor and its affiliates access to all information generated | |
| --- | --- |
| by the Technology System, including price maintenance and information relating to customers for | |
| Franchisee’s RWC Business. At Franchisor’s request, Franchisee agrees to sign a release with any vendor | |
| of Franchisee’s Technology System providing Franchisor with unlimited access to Franchisee data. |
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, the franchisee is responsible for all costs associated with the Technology System. The franchisee must acquire, operate, maintain, and upgrade the Technology System according to Red Wagon Club's standards and specifications. This includes the connectivity of the Technology System and any third-party interfaces between the Technology System, Red Wagon Club, and any third party's computer system.
The franchisee bears sole responsibility for any consequences resulting from the Technology System not being properly operated, maintained, and upgraded. Red Wagon Club may require the franchisee to license proprietary software as part of the Technology System, potentially incurring initial and recurring Technology Fees. Red Wagon Club retains the right to increase the Technology Fee, but not by more than $500 in any calendar month of the Term, to reflect changes in technology costs and availability.
Furthermore, the franchisee is responsible for ensuring the Technology System interfaces with Red Wagon Club's and any third party's computer system at specified connection speeds. The Technology System may provide Red Wagon Club and its affiliates access to all information generated, including price maintenance and customer data. The franchisee agrees to sign a release with any vendor of the Technology System, granting Red Wagon Club unlimited access to franchisee data upon request.