How many company-owned Red Wagon Club outlets were operating at the end of 2022?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company-Owned2 | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 2 | 2 | |
| 2023 | 2 | 2 | 2 | |
| Total Outlets | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 2 | 2 | |
| 2023 | 2 | 2 | 2 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 45–47)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, at the end of 2022, there were 2 company-owned outlets. The FDD also notes that two of Red Wagon Club's directors operate RWC Businesses, and these are included as company-owned locations.
Specifically, the table provided in Item 20 outlines the number of company-owned Red Wagon Club outlets at the start and end of each year from 2021 to 2023, as well as the net change. For 2022, the table shows that Red Wagon Club started the year with 0 company-owned outlets and ended the year with 2, representing a net increase of 2 outlets. In 2023, the number of company-owned outlets remained constant at 2.
This information is valuable for prospective franchisees as it provides insight into the operational structure of Red Wagon Club. The fact that the company operates its own outlets, even if only a few, can be seen as a positive sign. It demonstrates that the franchisor has experience running the business model themselves, which can be beneficial for franchisees who may need support or guidance. However, it is important to note that the numbers in this table are as of May 31.