When is the initial franchise fee for Red Wagon Club due?

According to Red Wagon Club's 2024 Franchise Disclosure Document, the initial franchise fee of $50,000 is due when the Franchise Agreement is signed. This fee is considered fully earned by Red Wagon Club upon signing and is payable in a lump sum.

This means that a prospective franchisee must be prepared to pay the entire $50,000 upfront at the time of signing the agreement to officially become a Red Wagon Club franchisee. This is a non-recurring fee, meaning it is a one-time payment for the initial grant of the franchise.

It is important to note that the initial franchise fee is non-refundable under any circumstances. Therefore, a potential franchisee should carefully consider all aspects of the franchise opportunity and conduct thorough due diligence before signing the Franchise Agreement and paying the fee. This non-refundable policy is relatively standard in the franchise industry, as it compensates the franchisor for the initial costs and efforts in evaluating and onboarding a new franchisee.