Does the Red Wagon Club transfer fee cover training of the transferee?

According to Red Wagon Club's 2024 Franchise Disclosure Document, the transfer fee does cover the training of the transferee. The standard transfer fee is 75% of the then-current initial franchise fee. This fee is charged when a franchisee transfers ownership, possession, or control of their Red Wagon Club business, or substantially all of its assets, to a new owner.

The FDD specifies that this transfer fee covers Red Wagon Club's costs for assessing the transferee's qualifications, providing training, and offering early support to the new owner. This suggests that the transferee will receive some level of training and assistance from Red Wagon Club to help them successfully operate the franchise.

However, the transfer fee structure varies depending on the situation. If shares are being transferred between existing owners, or if a new shareholder is being added without changing the majority ownership, the transfer fee is $1,500. For transfers to existing franchisees, the transfer fee is 33% of the then-current initial franchise fee. It is not explicitly stated whether the training is included in these alternative transfer fee arrangements.