Yes. The concept of 'Wrinkles the Clown' being based on a true story is real. There was an actual person who donned the 'Wrinkles' persona. This clown's actions of scaring children, which were often arranged by parents, caught the public's attention and led to the creation of the story we see in the movie. It's an interesting example of how real - life oddities can be turned into a horror - themed story.
The real story of Wrinkles the Clown is that he was created as a creepy character. He was known for showing up in kids' bedrooms at night in a really spooky way, which was part of a marketing ploy to make him seem very mysterious. Some say it was all just a way to scare kids for fun and create a local legend.