Is the Red Wagon Club currently assessing a Technology Fee?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, a Technology Fee is not currently assessed. However, Red Wagon Club retains the right to implement this fee in the future. If implemented, the Technology Fee would be paid monthly, typically by the 10th of each month.
Red Wagon Club may introduce this fee for technology they or their affiliates develop or license to franchisees, as well as for maintenance, support, and technology development services. While the exact amount of the Technology Fee is subject to change at Red Wagon Club's discretion based on the technology used, the FDD states that increases are capped at $500 per month during the term of the Franchise Agreement.
Prospective franchisees should note that Red Wagon Club anticipates franchisees would likely pay these fees directly to designated third-party vendors. However, Red Wagon Club reserves the right to require franchisees to pay the Technology Fee directly to them instead. It is important for potential franchisees to discuss with Red Wagon Club under what circumstances this fee would be implemented and how it would impact their overall costs.