Is the Red Wagon Club required to assess the 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, the Technology Fee is not currently assessed. However, Red Wagon Club has the option 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 paid monthly, typically due on the 10th of each month. While the exact amount is subject to change at Red Wagon Club's discretion based on the technology used, increases are capped at $500 per month during the term of the Franchise Agreement.
Prospective franchisees should note that while the FDD anticipates payments being made directly to third-party vendors, Red Wagon Club reserves the right to collect the Technology Fee directly. It is important for potential franchisees to inquire about the specific circumstances under which this fee might be implemented and how it would impact their overall operating costs.