Is the Red Wagon Club required to assess a Technology Fee?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Not currently assessed | If assessed, monthly, the 10th of each month | We do not currently charge this fee but may do so for technology that we or our affiliates develop or license to you and for other maintenance, support, and technology development services that we or our affiliates provide. The amount of this fee is subject to increase at our discretion commensurate with the technology used in the operation of RWC Businesses; provided, that we will not increase this fee by more than $500 in any given month of the term of a Franchise Agreement. We anticipate that you would pay these amounts directly to designated third-party vendors, but we may require you to pay us the Technology Fee directly. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, a Technology Fee is not currently assessed. However, Red Wagon Club retains the right to implement this fee in the future for technology they develop or license to franchisees, as well as for maintenance, support, and technology development services. If implemented, the Technology Fee would be due monthly, on the 10th of each month.
The amount of the Technology Fee is subject to change at Red Wagon Club's discretion based on the technology used in the operation of Red Wagon Club businesses. However, the FDD stipulates that Red Wagon Club will not increase this fee by more than $500 in any given month during the term of the Franchise Agreement.
While the FDD anticipates that franchisees would pay these amounts directly to designated third-party vendors, Red Wagon Club may require franchisees to pay the Technology Fee directly to them. This flexibility allows Red Wagon Club to manage technology-related expenses and services as they deem most efficient. As the fee is not currently assessed, prospective franchisees should inquire about the likelihood and potential timing of its implementation, as well as the specific technologies and services it would cover.