Is the Red Wagon Club Mystery Shopper Fee a recurring fee?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Mystery Shopper Fees | Not currently assessed | If assessed, as incurred | We do not currently charge this fee but may do so if we conduct a quality assurance mystery shopper program. We estimate that this fee would be up to $500 per month if we elect to impose it. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, the Mystery Shopper Fee is not currently assessed. However, Red Wagon Club may implement this fee in the future if they decide to conduct a quality assurance mystery shopper program. If assessed, the fee is estimated to be up to $500 per month and would be due as incurred.
This means that as a Red Wagon Club franchisee, you may not have to pay this fee initially. However, Red Wagon Club retains the right to introduce it later. If implemented, this fee would cover the costs associated with a mystery shopper program designed to evaluate the quality of service at your location.
Franchisees should be aware that while the fee is estimated at up to $500 per month, the actual amount and frequency could vary depending on the specifics of the mystery shopper program implemented by Red Wagon Club. It is important to factor in this potential expense when considering the overall cost of operating a Red Wagon Club franchise. Franchisees should inquire about the specific criteria that would trigger the implementation of this fee and how the mystery shopper program would be conducted.