Risk Score
Pending analysis
Investment Range
$99,250 - $200,500
Franchise Fee
$50,000
Total US Locations
2
Business Summary
Red Wagon Club operates a membership-based business that provides educational and social programs and non-legal services. These services are specifically designed to complement and enhance the value proposition for the owner and clients of an existing affiliated law firm. Red Wagon Club franchisees operate by building client relationships, encouraging potential clients to sign membership agreements with an affiliate, and then providing services to these members.
Corporate History
Red Wagon Club Franchise, LLC was formed in Florida on June 27, 2024, and began offering franchises as of the FDD issuance date, July 19, 2024. The business operates under the 'Red Wagon Club' trademarks, offering membership-based educational and social programs and non-legal services designed to enhance the value proposition for existing law firms and their clients. Two of the current directors already operate Red Wagon Club businesses as company-owned locations.
Financial Overview
Investment Range
$99,250 - $200,500
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Royalty %
66.67%
Equipment Costs (Low)
$17,500
Equipment Costs (High)
$68,500
Working Capital
$25,000
Audited Financials
No
Offers Financing
No
Financial Health Notes
Red Wagon Club Franchise is a newly formed company, established in June 2024. Its financial statements include an opening balance sheet as of July 16, 2024, showing $90,000 in total assets, primarily from capital contributions by David Carrier and RJon Robins. There are no liabilities, indicating a lean, new operation without significant historical financial data or complexities at this initial stage. The financial statements explicitly state they were prepared without an audit, and no independent certified public accountant has expressed an opinion on their content or form, despite Item 21 referring to them as 'audited'.
Financing Details
Red Wagon Club Franchise does not offer any direct or indirect financing options to its franchisees. Franchisees are responsible for securing their own funding, and Red Wagon Club Franchise will not guarantee any loans, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Red Wagon Club Franchise has no litigation history to disclose in this FDD.
Bankruptcy History
Red Wagon Club Franchise has no bankruptcy history to disclose in this FDD for itself or its management.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
Red Wagon Club Franchisees who wish to renew their agreement must provide written notice between 180 days and 12 months before the current term expires. They must be in full compliance with their existing Franchise Agreement and all other agreements with Red Wagon Club Franchise, and ensure their business meets all current System Standards. Franchisees will also need to sign Red Wagon Club Franchise's then-current form of franchise agreement, which may include different terms such as higher program fees. A successor franchise fee of $2,500 is required, and the franchisee and its owners must sign a general release. Renewal is also contingent on Red Wagon Club Franchise actively granting franchises in the franchisee's state at that time.
Training & Support Program
Franchisor Assistance
Red Wagon Club Franchise provides extensive assistance to its franchisees. Before opening, the franchisor helps with site approval if needed, provides lists of approved suppliers and specifications for operating assets, and conducts an initial training program for the Operating Principal and Designated Manager. Franchisees also receive access to the Operations Manual, standard Membership Agreement forms, approval for their affiliate law firm client relations program, and marketing materials. Ongoing support includes additional training as needed, continuous access to the Operations Manual, updates to operating assets and system standards, and billing and collection services for membership fees. Red Wagon Club Franchise also approves all advertising and promotional materials, maintains the system website, lists the RWC Business on major search engines and review sites, and hosts periodic conventions, meetings, and ongoing training events. They also provide the initial training program for any new Designated Managers.
Initial Training Hours
56
Training Location
Virtually, at the franchisor's office in Pittsburgh, PA, or another designated location
Ongoing Support
Red Wagon Club Franchise offers ongoing support including additional training programs when requested or required, continuous online access to the Operations Manual, and regular updates to operating assets, suppliers, and system standards. The franchisor also provides billing and collection services for membership fees, approves all advertising materials, and maintains the brand's website, listing the franchisee's business on major online platforms. Red Wagon Club Franchise hosts periodic conventions, meetings, and ongoing training events, which can be held remotely or at designated locations, and administers initial training for any new Designated Managers. They also provide and facilitate membership agreements for the franchisee's clients.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Red Wagon Club Franchise territories are defined as a protected area around the franchisee's approved office. These territories typically contain a maximum of 200,000 targeted households and may be defined using Zip Codes, streets, landmarks, county lines, or delineated on a map, with specific population data used when basing territories on population.
Staffing Notes
Red Wagon Club Franchise requires the Operating Principal (an owner with at least 51% interest) to provide direct, day-to-day, full-time supervision of the business. Alternatively, if the Operating Principal does not wish to supervise full-time, a Designated Manager can be appointed to work full-time in a supervisory role, provided they meet the franchisor's educational and business experience criteria and complete the training programs. Franchisees are solely responsible for hiring, training, and setting employment terms for their staff, including any Designated Managers.