According to the 2024 Red Wagon Club Franchise Disclosure Document, Section 8.B of the franchise agreement covers non-disparagement. This clause requires the franchisee to refrain from making negative statements about Red Wagon Club, its affiliates, directors, officers, employees, representatives, the brand, the System, any Business, or any business using the Marks. This extends to the franchisee's current and former owners, officers, directors, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors, and assigns.

The non-disparagement clause aims to protect Red Wagon Club's brand reputation and goodwill. It prohibits franchisees from taking any action that could subject the brand to ridicule, scandal, reproach, scorn, or indignity, or that could negatively impact the goodwill of the franchisor or the brand. This is a fairly standard clause in franchise agreements, intended to prevent franchisees from publicly criticizing the franchise system.

For a prospective Red Wagon Club franchisee, this means they must be mindful of their public statements and actions related to the franchise. Any negative comments or actions, even indirect ones, could be a breach of the franchise agreement. Franchisees should ensure that their employees and anyone associated with their business are also aware of this restriction. This clause remains in effect even after the franchise agreement ends, meaning former franchisees must also adhere to it.