What do the terms 'we' or 'us' refer to in the Red Wagon Club franchise disclosure document?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
To simplify the language in this franchise disclosure document (this "Disclosure Document"), we use the terms "we" or "us" to refer to the franchisor, Red Wagon Club Franchise, LLC. When we refer to our affiliates, we will refer to them using the names outlined below. "You" means the person who buys a franchise from us. You may sign a franchise agreement and operate your franchise as a corporation, limited liability company, or general or limited partnership; provided, that you may not use the entity under which you operate any other business. Your owners will have to guarantee your obligations and be bound by the provisions of your Franchise Agreement and other agreements as described in this Disclosure Document. Each owner's spouse will also be required to sign the guaranty to consent to such owner's execution of the guaranty.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 10–11)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, the terms "we" or "us" are used to refer to the franchisor, Red Wagon Club Franchise, LLC. The document clarifies this early on to ensure there is no confusion about who is making the statements and setting the terms within the FDD. This is a standard practice in franchise disclosure documents to clearly identify the franchisor entity.
For a prospective Red Wagon Club franchisee, this means that any statement using "we" or "us" is a direct statement, obligation, or representation made by Red Wagon Club Franchise, LLC. It is important to note that when the document refers to Red Wagon Club's affiliates, it will use the specific names of those affiliates, such as Red Wagon Club Community, LLC, or Franchise Law Firm Exploratory & Development, LLC (in the process of changing its name to Red Wagon Club IP, LLC). This distinction is important because the franchisee's relationship and obligations may differ with the franchisor versus its affiliates.
Furthermore, the FDD specifies that "you" refers to the person buying the franchise. This includes the understanding that the franchisee may operate as a corporation, LLC, or partnership, but cannot use an entity that operates any other business. The owners of the franchisee entity must also guarantee the obligations under the Franchise Agreement, and their spouses must consent to the guaranty. This level of detail ensures that all parties understand their roles and responsibilities within the franchise relationship.