Does Red Wagon Club provide site selection services for franchisees?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
You will operate your RWC Business from a defined location. While it is anticipated that you will operate your RWC Business from the office of the Affiliate Law Firm Business, if you operate your RWC Business from a different commercial space, you must obtain our approval of the location of such premises. We do not provide site selection services or any assistance with (a) conforming the premises to local ordinances and business codes, (b) obtaining required permits, or (c) constructing, remodeling, or decorating the premises. We also do not typically own any premises leased by franchisees from which RWC Businesses operate. We will condition our approval of a proposed location on whether the site is sufficient for operating your RWC Business, looking at factors such as demographic characteristics, character of the neighborhood, proximity of competition, and the size, appearance and other physical characteristics of the premises. If, for any reason, there is no agreement on a site from which you will operate your RWC Business, we may terminate the Franchise Agreement.
Your selection of a site for your RWC Business is based on your own independent investigation of the site's suitability for an RWC Business. If your RWC Business will be operated in a leased commercial space other than your the office of the Affiliate Law Firm Business, you will submit to us a complete report for the site you propose for your RWC Business. Your report must contain the documents and information we require, including a description of the proposed site, and a letter of intent or other evidence confirming your favorable prospects for obtaining the proposed site. Though we are not obligated under the Franchise Agreement to respond to your request for approval of a proposed site within a designated time frame, we will use reasonable efforts to accept or not accept the proposed site within 30 days after receiving your report. While there is not a timeframe by which you must obtain site approval or enter into a lease (if applicable), you must begin operating your RWC Business no later than 180 days after the effective date of the Franchise Agreement, or we have the right to terminate your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, Red Wagon Club does not provide site selection services for franchisees. While it is anticipated that franchisees will operate their Red Wagon Club business from the office of an affiliated law firm, if a franchisee chooses to operate from a different commercial space, they must obtain Red Wagon Club's approval of the location.
Red Wagon Club will assess the proposed location based on factors such as demographic characteristics, the character of the neighborhood, proximity to competition, and the size and appearance of the premises. The franchisee is responsible for their own independent investigation of the site's suitability. If the site is not approved, Red Wagon Club has the right to terminate the Franchise Agreement.
To gain approval for a site, franchisees must submit a complete report including a description of the proposed site and evidence confirming favorable prospects for obtaining the site. Red Wagon Club will use reasonable efforts to respond to the request within 30 days after receiving the report. Franchisees must begin operating their Red Wagon Club business no later than 180 days after the effective date of the Franchise Agreement.