If assessed, on what day of the month is the Red Wagon Club Technology Fee due?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Not currently assessed | If assessed, monthly, the 10th of each month | We do not currently charge this fee but may do so for technology that we or our affiliates develop or license to you and for other maintenance, support, and technology development services that we or our affiliates provide. The amount of this fee is subject to increase at our discretion commensurate with the technology used in the operation of RWC Businesses; provided, that we will not increase this fee by more than $500 in any given month of the term of a Franchise Agreement. We anticipate that you would pay these amounts directly to designated third-party vendors, but we may require you to pay us the Technology Fee directly. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, if a Technology Fee is assessed, it is due on the 10th of each month. Currently, Red Wagon Club does not charge this fee, but it may do so in the future for technology that they or their affiliates develop or license to franchisees, as well as for maintenance, support, and technology development services.
The amount of the Technology Fee is subject to increase at Red Wagon Club's discretion based on the technology used in the operation of the RWC Businesses. However, the FDD stipulates that Red Wagon Club will not increase this fee by more than $500 in any given month during the term of the Franchise Agreement.
The FDD also states that Red Wagon Club anticipates franchisees would pay these amounts directly to designated third-party vendors, but they may require franchisees to pay Red Wagon Club the Technology Fee directly. This means that while the fee is not currently assessed, prospective franchisees should be prepared for the possibility of this expense in the future and factor it into their financial planning.