Is the Initial Training Program for Red Wagon Club mandatory for the Operating Principal?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
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Training Programs
We will provide your Operating Principal and your Designated Manager, if applicable, with an initial training program for the operation of an RWC Business (the "Initial Training Program"). Currently, the Initial Training Program is a combined format of digital and in-person training. The digital training portion will consist of a minimum of 10 weeks of virtual training. The virtual training will include a weekly pre-recorded video, accompanied by a weekly group coaching call. These virtual trainings will be accompanied by a franchisee homework assignment. During the group coaching call, Franchisee will attend the call with other franchisees from various locations. Additionally, Franchisor will provide an individual firm coaching call a minimum of twice per month. The in-person training will occur at our office in Pittsburgh, PA and is estimated to last approximately 3 to 5 days, though we may conduct the in-person sessions virtually or at another location we specify. We may vary the Initial Training Program based on the experience and skill level of the individual(s) attending.
The Initial Training Program will be run in "cohorts" with other franchisees. We will provide the Initial Training Program to your Operating Principal and your Designated Manager, if applicable, at no charge, as such training is covered by your Initial Franchise Fee. If we provide any portion of the Initial Training Program on-site at our headquarters or at any other location determined by us, you are responsible for all expenses associated with attending the Initial Training Program, including wages, travel, lodging, and other accommodations. Should any portion of the Initial Training Program take place at your RWC
Business, we may charge you for all travel and living expenses for the trainer(s) we send to your RWC Business.
Your Operating Principal and your Designated Manager, if applicable, must complete the Initial Training Program to our satisfaction prior to opening your RWC Business for operations, and in any event within 180 days of signing the Franchise Agreement. If your Operating Principal and your Designated Manager, if applicable and any other required trainees (detailed below) fail to complete the Initial Training Program to our satisfaction, we may require you to attend additional training. If you or we determine that additional training is necessary after completion of the Initial Training Program, we may provide up to 3 additional days of training to you at our then-current fee for additional training
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, the Initial Training Program is mandatory for the Operating Principal. The document states that the Operating Principal must complete the Initial Training Program to the franchisor's satisfaction before opening their Red Wagon Club business. This training must be completed within 180 days of signing the Franchise Agreement.
The Initial Training Program is provided at no charge, as it is covered by the Initial Franchise Fee. However, the franchisee is responsible for all expenses associated with attending the training, including wages, travel, lodging, and other accommodations. If any portion of the training takes place at the franchisee's Red Wagon Club Business, the franchisee may be charged for all travel and living expenses for the trainers.
If the Operating Principal fails to complete the Initial Training Program to Red Wagon Club's satisfaction, the franchisee may be required to attend additional training. If additional training is necessary after completion of the Initial Training Program, Red Wagon Club may provide up to 3 additional days of training at the then-current fee of $1,000 per trainer, per day, plus costs and expenses. Failure to complete the required training to the franchisor's satisfaction may result in termination of the Franchise Agreement.
Red Wagon Club also provides ongoing training events that the Operating Principal may be required to attend for up to 10 days during a calendar year. The franchisee is responsible for all costs associated with attending these ongoing training activities, and Red Wagon Club may charge a fee for these types of ongoing training activities.