What is the Franchisee granted the right to do under the Franchise Agreement with Red Wagon Club?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached as Exhibit I are two copies of a Receipt confirming your receipt of this Disclosure Document. Please sign and date both Receipt pages, keep one for your records, and return the other to us.
EXHIBIT B
SUBLICENSE AGREEMENT
SUBLICENSE AGREEMENT
| 6. | FEES. | ...........................................................................................................................9 | |---|---|---| WHEREAS, Franchisee and Red Wagon Club Franchise LLC ("Franchisor") are parties to that certain Franchise Agreement dated concurrently herewith (the "Franchise Agreement"), pursuant to which Franchisor granted Franchisee the right, and Franchisee undertook the obligation, to develop, own and operate a franchised business ("Franchisee's RWC Business") identified by, and whose products and services are identified by, the trademark Red Wagon ClubTM (together with other trademarks and service marks Franchisor designates from time to time, the "Marks"), that offer a variety of non-legal social events, estate planning seminars, and membership benefits to clients ("Members");
WHEREAS, Licensee owns and operates a law firm business which provides estate planning services to clients and is located at ______________________________________ ("Licensee's Law Firm Business"), and in connection with the operation of Licensee's Law Firm Business, Licensee wishes to acquire from Franchisee a sublicense to use the Marks and certain of Franchisor's proprietary materials (the "Licensed Materials") associated with the Red Wagon ClubTM brand (the "Brand"); and
WHEREAS, it is a condition of Franchisor's grant of the Franchise Agreement to Franchisee and Franchisee's continued operation of Franchisee's RWC Business that the Parties enter into this Agreement and deliver a fully executed copy to Franchisor.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
- Term.
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, the Franchise Agreement grants the franchisee the right and obligation to develop, own, and operate a franchised business. This business, referred to as "Franchisee's RWC Business," is identified by the trademark Red Wagon ClubTM, along with other trademarks and service marks designated by the franchisor. The franchisee's business will offer a variety of non-legal social events, estate planning seminars, and membership benefits to clients, who are referred to as "Members."
This agreement is contingent upon the franchisee entering into an agreement to deliver a fully executed copy to the franchisor. The franchisee is granted a license to use the Marks and Licensed Materials during the Term strictly in connection with the operation of Licensee's Law Firm Business pursuant to the terms and conditions of this Agreement and for no other purpose. The franchisee must provide the Licensee digital copies or access to the Licensed Materials and Licensee must use the Licensed Materials without modification unless otherwise consented to in writing by Franchisor.
In practical terms, this means a Red Wagon Club franchisee is authorized to establish and run a business under the Red Wagon Club brand, offering specific services and products. However, this right is coupled with the obligation to adhere to the franchisor's standards and utilize their trademarks and service marks. The franchisee must also ensure compliance with the terms of the agreement, including any modifications to the Marks and Licensed Materials that the Franchisor makes.