Is a Brand Fund Contribution currently assessed for Red Wagon Club franchisees?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Fund Contribution | Not currently assessed | If assessed, monthly, the 10th of each month | We may, but are not obligated to, establish an advertising fund to be used to promote the awareness of the Red Wagon Club brand and RWC Businesses generally (the "Brand Fund"). If we establish the Brand Fund, upon notice to you, you agree to contribute to the Marketing Fund. We anticipate that the Brand Fund contribution would be $500 per month. If we impose this fee, we may further increase the Brand Fund Contribution by up to 10% annually during the term of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, a Brand Fund Contribution is not currently assessed. However, Red Wagon Club retains the option to establish an advertising fund to promote the brand and its businesses.
If Red Wagon Club establishes a Brand Fund, franchisees will be required to contribute to it upon notice. The FDD anticipates that the Brand Fund contribution would be $500 per month. This contribution, if implemented, would be due monthly on the 10th of each month, aligning with other fees like the Program Fee.
Furthermore, Red Wagon Club reserves the right to increase the Brand Fund Contribution by up to 10% annually during the term of the Franchise Agreement, should the fee be imposed. This potential increase should be considered by prospective franchisees as a possible additional cost during the franchise term.