Where in the Red Wagon Club FDD can I find information about non-disparagement?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
8.B. NON-DISPARAGEMENT.
Franchisee agrees not to (and to use Franchisee's best efforts to cause Franchisee's current and former owners, officers, directors, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors, and assigns not to) (i) disparage or otherwise speak or write negatively, directly or indirectly, of Franchisor, its affiliates, any of Franchisor's or its affiliates' directors, officers, employees, representatives or affiliates, the "Red Wagon Club" brand, the System, any Business, any business using the Marks, or (ii) take any other action which would, directly or indirectly, subject the "Red Wagon Club" brand to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact the goodwill of Franchisor or the "Red Wagon Club" brand.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club FDD, information regarding non-disparagement can be found in Item 22, which pertains to contracts. Specifically, section 8.B of Item 22 outlines the non-disparagement agreement that a franchisee must adhere to.
This clause mandates that the franchisee, along with their current and former owners, officers, directors, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors, and assigns, must not directly or indirectly disparage Red Wagon Club, its affiliates, directors, officers, employees, representatives, or the brand itself. This extends to any negative comments or actions that could subject the brand to ridicule, scandal, or negatively impact its goodwill.
This type of clause is common in franchise agreements to protect the brand's reputation and maintain uniformity across the franchise system. Prospective Red Wagon Club franchisees should understand the breadth of this clause, as it extends beyond just the franchisee to include a wide range of affiliated parties. Violating this clause could potentially lead to legal repercussions or termination of the franchise agreement.