What is included in the Technology System for a Red Wagon Club franchise?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
or on behalf of any legal entity established to acquire the franchise rights, (a) fully understands that the purchase of a Red Wagon Club franchise is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD") in deciding to purchase the franchise.
In that regard, I represent to Franchisor and acknowledge that:
| separately, two (2) consecutive successor Franchises of five (5) years each. The acquisition of the first | Franchisee agrees to obtain and use business management services software, phone systems, and | |
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| such other computer hardware, software, and technology that Franchisor periodically specifies to be used | ||
| in connection with Franchisee’s RWC Business (the “Technology System”). Franchisor may modify | ||
| specifications for and components of the Technology System from time to time and Franchisee agrees to | ||
| implement Franchisor’s modifications within ninety (90) days after Franchisee receives notice from | ||
| Franchisor. Franchisor may periodically require Franchisee to purchase, lease, and/or license new or | ||
| modified computer hardware and/or software and to obtain service and support for the Technology System. | ||
| Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the | ||
| Technology System (and any additions and modifications) and required service or support as Franchisor | ||
| may require and modify from time to time. | [Signature Page to Follow] |
FRANCHISEE:
Sign here if you are taking the franchise as an INDIVIDUAL(S)
(Note: use these blocks if you are an individual or a partnership but the partnership is not a separate legal entity)
| Franchisee may be required to license, and sign a software license agreement regarding, certain | |
|---|---|
| proprietary software as part of our requirements for the Technology System. Franchisor and its affiliates | |
| may charge Franchisee an initial and recurring fee for any proprietary software or technology that | |
| Franchisor or its affiliates license to Franchisee and for other maintenance, support, and technology | |
| development services that Franchisor or its affiliates provide (a “Technology Fee”). Franchisor reserves | |
| the right to increase the Technology Fee to reflect changes in the costs and availability of technology, | |
| provided that the Technology Fee may not be increased by more than $500 in any calendar month of the | |
| Term. Franchisor may also require that Franchisee pay Franchisor for software and other technology that | |
| Franchisee receives through Franchisor from third-party providers. Franchisee will have sole and complete | |
| responsibility for the manner in which Franchisee’s Technology System interfaces at Franchisor’s specified | |
| levels of connection speed with Franchisor’s and any third party’s computer system and any and all | |
| consequences if the Technology System is not properly operated, maintained, and upgraded. |
Sign here if you are taking the franchise as a CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP
| The Technology System may give Franchisor and its affiliates access to all information generated | |
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| by the Technology System, including price maintenance and information relating to customers for | |
| Franchisee’s RWC Business. At Franchisor’s request, Franchisee agrees to sign a release with any vendor | |
| of Franchisee’s Technology System providing Franchisor with unlimited access to Franchisee data. |
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club FDD, the Technology System includes business management services software, phone systems, and other computer hardware, software, and technology that Red Wagon Club specifies for use in connection with the Franchisee’s RWC Business. Red Wagon Club may modify the specifications and components of the Technology System, and the franchisee must implement these modifications within 90 days of receiving notice.
Red Wagon Club may periodically require franchisees to purchase, lease, or license new or modified computer hardware and/or software and to obtain service and support for the Technology System. The franchisee is responsible for the costs of obtaining the computer hardware and software, including any additions and modifications, as well as the required service or support. Franchisees may also be required to license proprietary software and sign a software license agreement as part of the Technology System requirements.
Franchisees may be charged initial and recurring fees for any proprietary software or technology licensed to them by Red Wagon Club or its affiliates, as well as for other maintenance, support, and technology development services. Red Wagon Club reserves the right to increase the Technology Fee to reflect changes in the costs and availability of technology, but the increase cannot exceed $500 in any calendar month. Additionally, franchisees may be required to pay Red Wagon Club for software and other technology received through them from third-party providers.
Although franchisees agree to maintain the Technology System according to Red Wagon Club's standards, they are solely responsible for acquiring, operating, maintaining, and upgrading the system, including its connectivity and third-party interfaces. Franchisees bear the responsibility for any consequences resulting from the improper operation, maintenance, or upgrading of the Technology System. Red Wagon Club and its affiliates may have access to all information generated by the Technology System, including price maintenance and customer information, and franchisees may be required to sign a release providing Red Wagon Club with unlimited access to their data.