Under the Red Wagon Club agreement, does the agreement create any agency between the parties?

According to the 2024 Red Wagon Club Franchise Disclosure Document, the agreement explicitly states that the relationship between the parties is that of independent contractors. The agreement specifies that nothing within it creates any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the parties. This means that neither party has the authority to contract for or bind the other party in any manner whatsoever.

This clause is included to ensure that the franchisee is recognized as an independent business owner and operator. It clarifies that the franchisee is not an agent or employee of Red Wagon Club, and therefore, Red Wagon Club is not liable for the franchisee's actions or debts. Similarly, the franchisee cannot act on behalf of Red Wagon Club or make agreements that bind the franchisor.

For a prospective Red Wagon Club franchisee, this means they have considerable autonomy in running their business, but they also bear the full responsibility for its operations and liabilities. This arrangement is typical in franchising, where franchisees invest in and manage their own businesses under the franchisor's brand and system, while remaining legally distinct entities.