How many company-owned Red Wagon Club outlets were operating at the start 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 start of 2022, there were zero company-owned outlets. By the end of 2022, this number increased to two company-owned outlets. In 2023, the number of company-owned Red Wagon Club outlets remained at two.
This information is crucial for potential franchisees as it provides insight into the company's operational structure and growth patterns. The fact that Red Wagon Club had no company-owned stores at the beginning of 2022, but ended the year with two, indicates a recent shift towards corporate-owned locations.
It's important to note that two of Red Wagon Club's directors operate RWC Businesses, and these are included as company-owned locations. This could mean that the company-owned stores are not necessarily run in the same way as a franchised location, and a prospective franchisee should inquire about the operational differences between franchised and company-owned stores.