Who pays for the annual audit of the Red Wagon Club Brand Fund?

According to the 2024 Red Wagon Club Franchise Disclosure Document, if Red Wagon Club chooses to have the Brand Fund audited annually, the expense of this audit is paid for by the Brand Fund itself. The Brand Fund is used for marketing and advertising activities to promote the Red Wagon Club brand. While Red Wagon Club is not required to have the Brand Fund audited, they may choose to do so.

This means that franchisees' contributions to the Brand Fund would cover the cost of the audit, rather than Red Wagon Club directly paying for it. This is a common practice in franchising, where advertising funds are used to cover their own administrative and operational costs, as well as marketing expenses.

Prospective franchisees should be aware that while Red Wagon Club will provide an annual, unaudited statement of Brand Fund collections and expenses upon written request, the Brand Fund may be audited annually at the Brand Fund's expense by an independent certified public accountant.