Who is responsible for the connectivity of the Red Wagon Club Technology System?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Notwithstanding the fact that Franchisee agrees to buy, license, use, and maintain the Technology | |
|---|---|
| System according to Franchisor standards and specifications, Franchisee will have sole and complete | |
| responsibility for acquiring, operating, maintaining and upgrading: (1) the Technology System; (2) the | |
| connectivity of Franchisee Technology System; and (3) third-party interfaces between the Technology | |
| System and Franchisor and any third party’s computer system. Franchisee will have sole and complete | |
| responsibility for any and all consequences if the Technology System is not properly operated, maintained, | |
| and upgraded, including as required under Section 9.F. |
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, the franchisee is solely responsible for the connectivity of the Technology System. While Red Wagon Club specifies the Technology System that franchisees must use, the franchisee bears the responsibility for acquiring, operating, maintaining, and upgrading it. This includes ensuring the connectivity of the system.
This means the franchisee is responsible for any consequences arising from the Technology System's improper operation, maintenance, or upgrades. The franchisee is also responsible for how their Technology System interfaces with Red Wagon Club's and any third party's computer systems, including maintaining specified connection speeds.
Red Wagon Club may charge franchisees initial and recurring Technology Fees for proprietary software, maintenance, support, and technology development services. The Technology Fee may increase, but not by more than $500 in any calendar month. Red Wagon Club can also require franchisees to pay for software and technology received from third-party providers. Prospective franchisees should consider these costs and responsibilities when evaluating the Red Wagon Club franchise opportunity.