What was the total number of Red Wagon Club outlets at the end of 2023?
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 the 2024 Red Wagon Club Franchise Disclosure Document, the total number of Red Wagon Club outlets at the end of 2023 was 2. These were all company-owned outlets, with no franchised locations in operation at that time.
Specifically, the FDD provides a table summarizing the systemwide outlet count. This table shows that at the beginning of 2023, there were 2 company-owned outlets. Throughout 2023, there were no new openings, closures, or other changes in ownership, leaving a total of 2 company-owned outlets at the end of the year. There were zero franchised outlets at the end of 2023.
It's important to note that the numbers in this table are as of May 31, as indicated in the footnotes. Additionally, the FDD clarifies that two of Red Wagon Club's directors operate RWC Businesses, and these are included as company-owned locations. This context helps explain why, despite the franchise system being relatively new, there were already a couple of company-owned locations in operation.
Prospective franchisees should pay close attention to the distinction between franchised and company-owned outlets, as this can impact the support and competition they might experience. Understanding the growth strategy and the role of company-owned stores in Red Wagon Club's overall plan is crucial for making an informed investment decision.