If assessed, when is the Brand Fund Contribution due for a Red Wagon Club franchise?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Fund Contribution | Not currently assessed | If assessed, monthly, the 10th of each month | We may, but are not obligated to, establish an advertising fund to be used to promote the awareness of the Red Wagon Club brand and RWC Businesses generally (the "Brand Fund"). If we establish the Brand Fund, upon notice to you, you agree to contribute to the Marketing Fund. We anticipate that the Brand Fund contribution would be $500 per month. If we impose this fee, we may further increase the Brand Fund Contribution by up to 10% annually during the term of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, the Brand Fund Contribution is not currently assessed. However, if Red Wagon Club decides to establish the Brand Fund, the contribution would be due monthly, specifically on the 10th of each month.
Red Wagon Club may establish an advertising fund to promote brand awareness for Red Wagon Club businesses, but they are not obligated to do so. If the Brand Fund is established, franchisees will be notified and required to contribute. The FDD anticipates the Brand Fund contribution would be $500 per month.
It's important to note that Red Wagon Club retains the right to increase the Brand Fund Contribution by up to 10% annually during the term of the Franchise Agreement, should they decide to implement it. As a prospective franchisee, it would be prudent to inquire with Red Wagon Club about their plans for establishing the Brand Fund and the likelihood of future assessments.