How can a Red Wagon Club franchisee request the annual Brand Fund statement?

According to the 2024 Red Wagon Club Franchise Disclosure Document, if a Brand Fund is established, Red Wagon Club will prepare an annual, unaudited statement of Brand Fund collections and expenses. Once this statement is prepared for the most recently completed fiscal year, a franchisee can obtain it by submitting a written request to Red Wagon Club.

Red Wagon Club does not have a fiduciary obligation to franchisees regarding the Brand Fund. The Brand Fund's contributions are not considered assets of Red Wagon Club, but Red Wagon Club will hold all Brand Fund contributions for the benefit of the contributors. Red Wagon Club can spend more or less than the total contributions in any fiscal year and may borrow funds to cover deficits or invest any surplus.

It is important to note that Red Wagon Club is not required to have a Brand Fund. If a Brand Fund is created, Red Wagon Club has the right to alter the contribution amount with notice, but the increase cannot exceed 10% in any calendar year after the fund's establishment. The initial Brand Fund contribution is anticipated to be $500 per month, should Red Wagon Club establish the fund.