Does Red Wagon Club designate the operating assets and technology system for franchisees?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
4.C. OPERATING ASSETS.
Before Franchisee opens Franchisee's RWC Business, it agrees to obtain and install the fixtures, furniture, equipment, components of the Technology System (as defined in Section 4.D), furnishings, and signs that Franchisor approves for Businesses as meeting Franchisor's specifications and standards for quality, design, appearance, function, and performance (collectively, "Operating Assets"). Franchisee agrees to purchase or lease the brands, types, and models of Operating Assets that Franchisor designates or approves. Franchisee agrees to purchase or lease the Operating Assets only from suppliers Franchisor designates or approves (which may include or be limited to Franchisor and/its affiliates).
4.D. TECHNOLOGY SYSTEM.
Franchisee agrees to obtain and use business management services software, phone systems, and such other computer hardware, software, and technology that Franchisor periodically specifies to be used in connection with Franchisee's RWC Business (the "Technology System"). Franchisor may modify specifications for and components of the Technology System from time to time and Franchisee agrees to implement Franchisor's modifications within ninety (90) days after Franchisee receives notice from Franchisor. Franchisor may periodically require Franchisee to purchase, lease, and/or license new or modified computer hardware and/or software and to obtain service and support for the Technology System. Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the Technology System (and any additions and modifications) and required service or support as Franchisor may require and modify from time to time.
Franchisee must obtain and install the Technology System and ensure that the Technology System is functioning properly before Franchisee's RWC Business opens.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 37–38)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club FDD, franchisees must obtain and install specific fixtures, furniture, equipment, components of the Technology System, furnishings, and signs that Red Wagon Club approves. These items must meet Red Wagon Club's standards for quality, design, appearance, function, and performance. These approved items are referred to as "Operating Assets." Franchisees must purchase or lease the brands, types, and models of Operating Assets that Red Wagon Club designates or approves, and they must acquire these assets only from suppliers that Red Wagon Club designates or approves, which may include Red Wagon Club itself or its affiliates.
Red Wagon Club also requires franchisees to obtain and use specific business management services software, phone systems, and other computer hardware, software, and technology that Red Wagon Club periodically specifies for use in connection with the franchisee's RWC Business. This collection of technology is referred to as the "Technology System." Red Wagon Club may modify the specifications for and components of the Technology System, and franchisees must implement these modifications within 90 days of receiving notice from Red Wagon Club.
Red Wagon Club may periodically require franchisees to purchase, lease, and/or license new or modified computer hardware and/or software and to obtain service and support for the Technology System. The franchisee is responsible for the costs of obtaining the computer hardware and software comprising the Technology System, including any additions and modifications, as well as the required service or support, as Red Wagon Club may require and modify from time to time. The Technology System must be fully installed and functioning before the RWC Business opens.