Under what conditions can a Red Wagon Club franchisee acquire successor franchises?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| separately, two (2) consecutive successor Franchises of five (5) years each. The acquisition of the first | Franchisee agrees to obtain and use business management services software, phone systems, and |
|---|---|
| such other computer hardware, software, and technology that Franchisor periodically specifies to be used | |
| in connection with Franchisee’s RWC Business (the “Technology System”). Franchisor may modify | |
| specifications for and components of the Technology System from time to time and Franchisee agrees to | |
| implement Franchisor’s modifications within ninety (90) days after Franchisee receives notice from | |
| Franchisor. Franchisor may periodically require Franchisee to purchase, lease, and/or license new or | |
| modified computer hardware and/or software and to obtain service and support for the Technology System. | |
| Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the | |
| Technology System (and any additions and modifications) and required service or support as Franchisor | |
| may require and modify from time to time. |
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, a franchisee may be able to acquire successor franchises under certain conditions. Specifically, if the franchisor is granting franchises at the time, a franchisee may acquire two consecutive successor franchises. Each successor franchise would have a term of five years.
This is subject to Section 3.D of an unspecified agreement. The franchisee must also agree to obtain and use specific business management services software, phone systems, and other computer hardware, software, and technology that Red Wagon Club periodically specifies for use in connection with the franchisee’s RWC Business.
Red Wagon Club may modify the specifications for and components of the Technology System from time to time, and the franchisee must implement these modifications within 90 days of receiving notice from the franchisor. The franchisee is responsible for the costs of obtaining the computer hardware and software, including any additions and modifications, as well as the required service or support as Red Wagon Club may require and modify periodically.