What does the Red Wagon Club Franchise Agreement state about the modification of the System?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
other party, except that it will always be deemed acceptable to send notice to Franchisee at the address of Franchisee's RWC Business:
| Notices to Franchisor: | Red Wagon Club Franchise, LLC |
|---|---|
| 2801 Florida Avenue Suite C Coconut Grove, Florida 33133 | |
| Notices | |
| to | |
| Franchisee: | |
| ATTN: Facsimile No.: Email Address: | |
22. BUSINESS JUDGMENT.
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. Whenever Franchisor has reserved the right in this Agreement to take or refrain from taking any action, or to prohibit Franchisee from taking or refraining from any action, Franchisor may, except as otherwise specifically provided in this Agreement, make Franchisor's decision or exercise its rights based on the information then readily available to Franchisor and on its judgment of what is in its best interests, the best interests of its
affiliates and/or the best interests of Businesses as a whole at the time the decision is made, regardless of whether Franchisor could have made other reasonable, or even arguably preferable, alternative decisions and regardless of whether its decision or action promotes its interests, those of its affiliates or any other person or entity.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the dates noted below, to be effective as of the Effective Date.
RED WAGON CLUB FRANCHISE, LLC, a [Name], a [state/type] Florida limited liability company Date*: (*This is the Effective Date)
ATTACHMENT A TO FRANCHISE AGREEMENT
| Name: Attention: Address: Email Address: 2. Form of Owner (check and complete one. Individual Corporation Limited Liability Company Partnership State Formed: Date: 3. Owners. The following identifies the owner that Franchisee has designated as, and that Franchisor approves to be, the Operating Principal and lists the full name of each person who is one of Franchisee's owners (as defined in the Franchise Agreement), or an owner of one of Franchisee's owners, and fully describes the nature of each owner's interest (attach additional pages if necessary).
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, Red Wagon Club retains the right to modify the System and the products and services offered by Businesses in any manner that is not specifically prohibited in the Franchise Agreement. This means Red Wagon Club has broad discretion to evolve its business model.
Red Wagon Club also reserves the right to vary System Standards for any franchise owner based on conditions it considers important to that franchise owner's successful operation. These modifications may require a franchisee to invest additional capital and/or incur higher operating costs. Franchisees must implement any changes in System Standards within the time period Red Wagon Club requires, whether they involve refurbishing or remodeling the Office, buying new Operating Assets, adding new products and services, adding personnel, or otherwise modifying the nature of Franchisee's operations.
Any unapproved variations from the System Standards may result in termination of the Franchise Agreement, unless such variations have been previously communicated to and approved by Red Wagon Club in writing. To maintain quality and system development, franchisees must operate in strict conformity with the Franchise Agreement and the methods, standards, specifications, and sources of supply designated in the Operations Manual. All products and services sold to Members by Franchisee in connection with Franchisee's RWC Business and other franchisees will be provided by Franchisor and its affiliates.
These stipulations mean that a Red Wagon Club franchisee must be prepared to adapt their business to changes implemented by the franchisor, potentially incurring additional costs. It is important for prospective franchisees to understand the scope of these potential changes and their financial implications.