Does Red Wagon Club control participation in market research and testing?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
As examples, and without limitation, System Standards may regulate any one or more of the following, in addition to the items described in Sections 9.B through 9.I below:
- (9) product and service development programs, including participation in market research and testing;
Franchisor retains the right to operate, develop and change the System and the products and services offered by Businesses in any manner that is not specifically prohibited in this Agreement.
Franchisee agrees at all times to operate and maintain Franchisee's RWC Business according to all of Franchisor's System Standards, as Franchisor periodically modifies and supplements them, even if Franchisee believes that a System Standard is not in the System's or Franchisee's best interests.
Additionally, Franchisor may contract with third parties to conduct Member survey or other market research testing, and "mystery shopper" and other quality assurance inspections at Franchisee's RWC Business, and Franchisor reserves the right to require Franchisee to reimburse Franchisor the costs and expenses associated with such inspection services. Franchisee agrees to cooperate with Franchisor fully during the course of these inspections and tests.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, System Standards may regulate product and service development programs, including participation in market research and testing. This means Red Wagon Club has the authority to set standards around how new products and services are developed and tested, and can require franchisees to participate in this process.
Red Wagon Club also retains the right to operate, develop, and change the System and the products and services offered by Businesses in any manner that is not specifically prohibited in the Franchise Agreement. This allows Red Wagon Club broad discretion in evolving its business model and offerings. Franchisees must operate and maintain their RWC Business according to all of Red Wagon Club's System Standards, even if a franchisee believes that a System Standard is not in the System's or franchisee's best interests.
Red Wagon Club may contract with third parties to conduct Member surveys or other market research testing. Red Wagon Club reserves the right to require franchisees to reimburse Red Wagon Club the costs and expenses associated with such inspection services. Franchisees agree to cooperate with Red Wagon Club fully during the course of these inspections and tests.