Can the Red Wagon Club Technology Fee be used for technology that affiliates license to franchisees?
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, though not currently assessed, may be charged in the future. This fee can be used for technology that Red Wagon Club or its affiliates develop or license to franchisees. It can also cover other maintenance, support, and technology development services provided by Red Wagon Club or its affiliates.
The amount of the Technology Fee is subject to increase at Red Wagon Club's discretion, based on the technology used in the operation of Red Wagon Club businesses. However, Red Wagon Club will not increase this fee by more than $500 in any given month of the Franchise Agreement term. While it's anticipated that franchisees would pay these amounts directly to designated third-party vendors, Red Wagon Club may require franchisees to pay the Technology Fee directly to them.
This means that as a Red Wagon Club franchisee, you may be required to pay a Technology Fee in the future to cover costs associated with technology used in your business. The fee could increase over time, but with a cap of $500 per month for any increase. It is important to note that while the FDD anticipates direct payments to third-party vendors, Red Wagon Club retains the right to collect the fee directly.