Is the Red Wagon Club currently assessing Mystery Shopper Fees?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | 75% of then-current Initial Franchise Fee | At time of transfer | Applies to a transfer of your RWC Business' ownership, possession, or control, or substantially all of its assets. This fee covers our assessment of transferee's qualifications, training, and early support. See Item 17. If shares are being transferred between existing owners, or if a new shareholder is being added that does not change the majority ownership of you, the transfer fee is $1,500. For transfers to existing franchisees, the transfer fee is 33% of the then-current Initial Franchise Fee. |
| Successor Franchise Fee | $2,500 | At time of election of Successor Franchise | This fee covers the administrative costs of granting you a Successor Franchise to govern the operation of your RWC Business for an additional term. See Item 17. |
| Technology Fee | Not currently assessed | If assessed, monthly, the 10th of each month | We do not currently charge this fee but may do so for technology that we or our affiliates develop or license to you and for other maintenance, support, and technology development services that we or our affiliates provide. The amount of this fee is subject to increase at our discretion commensurate with the technology used in the operation of RWC Businesses; provided, that we will not increase this fee by more than $500 in any given month of the term of a Franchise Agreement. We anticipate that you would pay these amounts directly to designated third-party vendors, but we may require you to pay us the Technology Fee directly. |
| Mystery Shopper Fees | Not currently assessed | If assessed, as incurred | We do not currently charge this fee but may do so if we conduct a quality assurance mystery shopper program. We estimate that this fee would be up to $500 per mo |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, Mystery Shopper Fees are not currently assessed. However, Red Wagon Club retains the right to implement this fee in the future should they decide to conduct a quality assurance mystery shopper program.
If implemented, the FDD states that the Mystery Shopper Fees could reach up to $500 per month. This type of fee would be in addition to other fees such as the Program Fee, Brand Fund Contribution, and Technology Fee, which are also subject to change or implementation by Red Wagon Club.
Prospective franchisees should be aware that while this fee is not currently being charged, it could be implemented during the term of their Franchise Agreement. It would be prudent to inquire with Red Wagon Club about the specific circumstances under which this fee might be assessed and how it would be used to improve the quality of the Red Wagon Club business.