Where can I find the audited opening balance sheet for Red Wagon Club?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 21: FINANCIAL STATEMENTS]
We were formed on June 27, 2024, and therefore, we are unable to provide three years of financial statements. Attached to this Disclosure Document as Exhibit D is our audited opening balance sheet as of July 16, 2024. Our fiscal year end is May 31.
EXHIBIT D
FINANCIAL STATEMENTS
Red Wagon Club Franchise LLC
Balance Sheet As of July 16, 2024
| TOTAL | |
|---|---|
| ASSETS | |
| Current Assets | |
| Bank Accounts | |
| City National Bank | 90,000.00 |
| Total Bank Accounts | $90,000.00 |
| Total Current Assets | $90,000.00 |
| TOTAL ASSETS | $90,000.00 |
| LIABILITIES AND EQUITY | |
| Total Liabilities | |
| Equity | |
| Capital Contribution | |
| David Carrier | 45,000.00 |
| RJon Robins | 45,000.00 |
| Total Capital Contribution | 90,000.00 |
| Retained Earnings | |
| Net Income | |
| Total Equity | $90,000.00 |
| TOTAL LIABILITIES AND EQUITY | $90,000.00 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, the audited opening balance sheet as of July 16, 2024, is attached to the Disclosure Document as Exhibit D. Because Red Wagon Club was formed on June 27, 2024, the FDD does not include three years of financial statements. The balance sheet shows the assets, liabilities, and equity of the company as of that date.
Specifically, the balance sheet details the company's assets, which consist entirely of current assets held in a City National Bank account, totaling $90,000. The liabilities section reflects that the company has no liabilities at the time of the balance sheet. The equity section shows capital contributions from David Carrier and RJon Robins, each contributing $45,000, for a total capital contribution of $90,000.
Prospective franchisees can review this balance sheet to understand the initial financial position of Red Wagon Club. It's important to note that the financial statements included in the FDD are audited, providing an additional level of assurance regarding their accuracy. Franchisees should analyze this information carefully to assess the financial health and stability of the franchisor.