factual

Can Red Wagon Club sell materials funded by Brand Fund contributions to franchisees?

Red_Wagon_Club Franchise · 2024 FDD

Answer from 2024 FDD Document

In our discretion, we may sell you, at reasonable prices, copies of certain materials funded by contributions to the Brand Fund.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)

What This Means (2024 FDD)

According to Red Wagon Club's 2024 Franchise Disclosure Document, if a Brand Fund is established, Red Wagon Club has the discretion to sell copies of certain materials funded by contributions to the Brand Fund to franchisees at reasonable prices.

The Brand Fund is used to promote brand awareness and RWC Businesses. If established, franchisee contributions will be in amounts specified periodically by Red Wagon Club, payable in the same manner as the Program Fee. Red Wagon Club retains the right to change the contribution amount with notice, but cannot increase it by more than 10% in any calendar year after the fund's establishment. The FDD anticipates an initial Brand Fund contribution of $500 per month if the fund is created.

Red Wagon Club, its affiliates, or designees have sole control over the Brand Fund's programs, including creative concepts, materials, endorsements, and their placement. The Brand Fund can be used for various marketing activities, such as online advertising, website and app maintenance, regional marketing, loyalty programs, public relations, market research, product development, and creating marketing materials. While the Brand Fund is not primarily for selling franchises, references to franchise availability may appear in marketing materials.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.