factual

What information must Attachment A to the Red Wagon Club Franchise Agreement contain?

Red_Wagon_Club Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (3) Attachment A to this Agreement completely and accurately describes all of Franchisee's owners and their interests in Franchisee as of the Effective Date. Subject to

Franchisor's rights and Franchisee's obligations under this Agreement, Franchisee and its owners agree to sign and deliver to Franchisor a revised Attachment A to reflect any changes in Franchisee's ownership information;

  • (4) Any person owning an interest in Franchisee at any time during this Agreement's term will execute a guaranty in the form Franchisor prescribes, undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between Franchisee and Franchisor. Franchisor's current form of guaranty is attached hereto as Attachment B;
  • (5) Franchisee must identify one of its owners on Attachment A who is a natural person with at least a 51% ownership interest and voting power in Franchisee, with the authority to take legally binding actions on Franchisee's behalf, to act as its "Operating Principal." Franchisor reserves the right to approve the Operating Principal. In the event that Franchisee's Operating Principal ceases to own at least a 51% ownership interest and voting interest in Franchisee, Franchisee's Operating Principal resigns or otherwise indicates to Franchisor or to Franchisee that he or she wishes to cease acting as Operating Principal, or Franchisor disapproves of the Operating Principal, Franchisee must recruit a new Operating Principal within 30 days of the change in ownership or disapproval and deliver to Franchisor a revised Attachment A to accurately identify the Operating Principal for its review and approval;

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2024 FDD)

According to the 2024 Red Wagon Club Franchise Disclosure Document, Attachment A to the Franchise Agreement must reflect any changes in the franchisee's ownership information. Additionally, the franchisee must identify an Operating Principal on Attachment A. This individual must be a natural person with at least a 51% ownership interest and voting power in the franchise.

The Operating Principal must have the authority to take legally binding actions on behalf of the franchisee. Red Wagon Club reserves the right to approve the Operating Principal. If the Operating Principal ceases to own at least a 51% ownership interest and voting interest, resigns, or is disapproved by Red Wagon Club, the franchisee must recruit a new Operating Principal within 30 days and provide a revised Attachment A.

The Operating Principal is authorized to deal with Red Wagon Club on the franchisee's behalf for all matters related to the Franchise Agreement. Any decision made by the Operating Principal is final and binding on the franchisee, and Red Wagon Club is entitled to rely solely on the Operating Principal's decisions. Red Wagon Club will not be liable for actions based on the Operating Principal's decisions or actions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.