Where in the Red Wagon Club Sublicense Agreement can I find information about non-competition covenants?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
d in other items of this Disclosure Document.**
| Obligation | Section in Franchise Agreement or related Agreement(s) | Item in Disclosure Document |
|---|---|---|
| a. Site selection and acquisition/lease | Franchise Agreement Sec. |
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, details regarding non-competition covenants can be found in Section 8 of the Sublicense Agreement. Item 11 of the FDD provides a table that cross-references various obligations with their corresponding sections in the Franchise Agreement or related agreements, as well as the relevant Item in the Disclosure Document.
Specifically, the table indicates that information on non-competition covenants is located in Section 8.A and 18.E of the Franchise Agreement and Section 8 of the Sublicense Agreement. Additionally, the table notes that Item 15 and 17 of the Disclosure Document also contain information pertaining to non-competition covenants.
For a prospective Red Wagon Club franchisee, this means that understanding the non-competition obligations requires careful review of these specific sections in both the Franchise Agreement and the Sublicense Agreement, as well as Items 15 and 17 of the FDD. These sections will outline the restrictions placed on the franchisee regarding competitive activities during and after the term of the franchise agreement. It is important to understand the scope and duration of these covenants before entering into the franchise agreement.