What constitutes a 'Competitive Business' that a Red Wagon Club licensee is prohibited from being involved with?

According to the 2024 Red Wagon Club Franchise Disclosure Document, a 'Competitive Business' is defined as any membership-based business affiliated with a law firm that offers non-legal services to clients or members. These non-legal services include training, social events, and seminars. This definition directly relates to the core services provided by a Red Wagon Club franchise, which focuses on offering non-legal social events, estate planning seminars, and membership benefits to clients.

Furthermore, the definition of 'Competitive Business' extends to any business that grants franchises or licenses to others to operate businesses similar to those described above. This means that a Red Wagon Club licensee is restricted from not only directly operating a competing business but also from being involved in franchising or licensing a similar concept to others.

This non-compete clause is in effect during the term of the License Agreement and for 24 months after its expiration or termination. During this period, the licensee, their affiliates, and immediate family members are prohibited from having any ownership interest in, performing services for, or diverting business to any 'Competitive Business.' This restriction is designed to protect Red Wagon Club's market position and proprietary business model.