Does Red Wagon Club provide any representations about a franchisee's future financial performance?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting our Chief Executive Officer & Director, Tim Sechler at 2801 Florida Avenue, Suite C, Coconut Grove, Florida 33133, (724) 750-6185, the Federal Trade Commission; and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 44)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, Red Wagon Club does not make any representations about a franchisee's future financial performance. This means that Red Wagon Club does not provide any guarantees or projections regarding the potential revenue, expenses, or profits a franchisee can expect to achieve.
Red Wagon Club also states that it does not authorize its employees or representatives to make any financial performance representations, either orally or in writing. If a prospective franchisee receives any financial performance information or projections from someone other than the official FDD, Red Wagon Club advises them to report it to the franchisor's management, the Federal Trade Commission, and the appropriate state regulatory agencies. Tim Sechler, Red Wagon Club's Chief Executive Officer & Director, can be contacted at 2801 Florida Avenue, Suite C, Coconut Grove, Florida 33133, (724) 750-6185.
However, if a prospective franchisee is purchasing an existing Red Wagon Club outlet, the franchisor may provide the actual records of that specific outlet. This allows the potential franchisee to review the financial history of the business they are considering buying.
It is common practice in the franchise industry for franchisors to either provide financial performance representations in Item 19 of the FDD or to explicitly state that they do not provide them. The lack of financial performance representations means that prospective franchisees must conduct their own independent research and analysis to determine the potential financial viability of a Red Wagon Club franchise.