Does the Red Wagon Club Sublicense Agreement specify post-termination obligations?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement or related Agreement(s) | Item in Disclosure Document |
|---|---|---|
| v. Post-termination obligations | Franchise Agreement Sec. 18 Sublicense Agreement Secs. 6.(b), 8, 10.(c) | 17 |
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, the Sublicense Agreement does address post-termination obligations. Item 11 includes a table outlining various obligations and their corresponding sections within the Franchise Agreement or related agreements.
Specifically, the table indicates that post-termination obligations are addressed in Section 18 of the Franchise Agreement and Sections 6.(b), 8, and 10.(c) of the Sublicense Agreement. This is further referenced in Item 17 of the Disclosure Document.
For a prospective Red Wagon Club franchisee, this means that the Sublicense Agreement outlines certain responsibilities and restrictions that continue even after the agreement is terminated. These could include clauses related to non-competition, confidentiality, or the return of proprietary materials. It is important for a potential franchisee to carefully review these sections to understand the full scope of their obligations upon termination of the Sublicense Agreement.