How many Red Wagon Club outlets were sold to franchisees in 2021?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired From Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| Michigan | 2021 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 1 | 0 | 0 | 0 | 1 | |
| 2023 | 1 | 0 | 0 | 0 | 0 | 1 | |
| Pennsylvania | 2021 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 1 | 0 | 0 | 0 | 1 | |
| 2023 | 1 | 0 | 0 | 0 | 0 | 1 | |
| Total1 | 2021 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 2 | 0 | 0 | 0 | 2 | |
| 2023 | 2 | 0 | 0 | 0 | 0 | 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, no outlets were sold to franchisees in 2021. The provided table breaks down outlet activity by state and year, showing zero outlets sold to franchisees in Michigan and Pennsylvania, which are the only states listed. The 'Total' row for 2021 also indicates zero outlets sold to franchisees.
This information is crucial for potential franchisees as it provides insight into the brand's growth strategy and franchisee relationships. The absence of outlet sales to franchisees in 2021 could indicate a focus on company-owned stores or a different approach to market expansion during that period.
It is important to note that the data is current as of May 31, 2024, as indicated in the footnotes. A prospective franchisee should consider this information in conjunction with other factors, such as the number of new franchise agreements signed and the projected openings for the coming year, to gain a comprehensive understanding of Red Wagon Club's growth trajectory.