Radisson RED Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Radisson RED is an upscale, design-forward lifestyle hotel franchise. Franchisees own and operate the hotels, managing guest services, food and beverage, and revenue under Radisson standards.
FranchiseVerdict summary · 2026
A Radisson RED franchise requires a total initial investment of $7.1M – $41.8M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $7.1M – $41.8M
- 36th pct Lodging
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 2
- 12th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $7.1M – $41.8M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSThe three provided page images for radisson-red are NOT audited financial statements. They are: p152 = a License Agreement "Key Contract Data" page fragment (Section 21.2 Right of First Negotiation/Notice, Exhibits); p153 = the Radisson RED License Agreement cover page (between Radisson Hotels International, Inc. and the Licensee); p154 = the License Agreement Table of Contents. No balance sheet, income statement, or Independent Auditor's Report is present, so no financial figures or auditor could be extracted.
- RISKVerdict D (Below average), verdict score 34/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Radisson Hotels International, Inc.
- Parent company
- Radisson Hospitality, Inc.
- Ultimate parent
- Shanghai State-Owned Assets Supervision and Administration Commission (via Jinjiang International Holdings Co., Ltd.)
- Incorporated in
- Delaware
- HQ
- 1601 Utica Avenue South, Suite 700, St. Louis Park, Minnesota 55416
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $198.3M
- vs $221.6M prior year
Overview
About
- CEO
- M. Thomas Buoy
- Headquarters
- MN
- Founded
- 1983
- FDD year
- 2022
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 149% above the typical lodging franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Feenot refundable | $75K | $75K | |
| Product Improvement Plannot refundable | $0 | $3K | |
| Construction Commencement Date, Renovation Commencement Date or Opening Date Extension Feenot refundable | $0 | $2K | |
| Real Estate | — | — | |
| Improvementsnot refundable | $3.5M | $30.0M | |
| Design & Engineering Costsnot refundable | $500K | $1.0M | |
| Furniture, Fixtures & Equipmentnot refundable | $675K | $6.0M | |
| Interior Design Review Feenot refundable | $0 | $3K | |
| Architectural Plan Review Feenot refundable | $0 | $3K | |
| Technical Services Feenot refundable | $0 | $2K | |
| Exterior Signagenot refundable | $50K | $200K | |
| Miscellaneous Pre-Opening Costsnot refundable | $500K | $1.0M | |
| Opening Inventorynot refundable | $200K | $1.2M | |
| ORACLE Opera Cloud PMS Initial Investmentnot refundable | $31K | $31K | |
| Training Registration Fees and Expensesnot refundable | $5K | $10K | |
| WebExtraSM Feenot refundable | $150 | $1K | |
| Start-Up Suppliesnot refundable | $10K | $12K | |
| SalesForce Community Feesnot refundable | $440 | $440 | |
| IDeaS Feesnot refundable | $4K | $4K | |
| Additional Funds 3 Monthsnot refundable | $1.5M | $2.0M | |
| Total initial investment | $7.1M | $41.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $7.1M – $41.8M
- Top 40% of category vs category
- Liquid capital req'd
- $1.5M – $2.0M
- Bottom third — review vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $5 |
| Training fee | $10K |
| Transfer fee | $75K |
| Inventory (initial) | $200K – $1.2M |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Radisson RED did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Radisson RED unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
The three provided page images for radisson-red are NOT audited financial statements. They are: p152 = a License Agreement "Key Contract Data" page fragment (Section 21.2 Right of First Negotiation/Notice, Exhibits); p153 = the Radisson RED License Agreement cover page (between Radisson Hotels International, Inc. and the Licensee); p154 = the License Agreement Table of Contents. No balance sheet, income statement, or Independent Auditor's Report is present, so no financial figures or auditor could be extracted.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Radisson RED Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 50.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $4.4M
- Median loan
- $886K
- average
- Charge-off rate
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Radisson RED presents extreme risk: a collapsing franchise system (2 units) with existential solvency concerns, active multi-front litigation, and zero financial transparency.
Litigation (Item 3)
No litigation required to be disclosed for the Radisson RED brand specifically. Disclosed cases relate to the Radisson brand: (1) Radisson v. AIL Hospitality, LLC & Ailawadi (D. Minn., breach of license/guaranty; counterclaims); (2) Norma Knuth v. Radisson et al. (Saskatchewan class action re destination marketing fees); (3) Radisson v. 205 Wolf Holdings/Inner Circle Licensees (D. Minn./Hennepin Cty., breach of license/global settlement; counterclaims; some defendants in Ch.11); plus 3 Radisson-initiated collection actions in the last fiscal year (Ronit Hospitality; Rochester Airport Hospitality; iBorrow 2945 OKC Owner).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 verdict
- 01MINOROnly 2 units in entire system with unknown growth trajectory indicates severe contraction or failed concept
- 02HIGHActive litigation across multiple categories (breach, class action, fee disputes) suggests systemic franchisor-franchisee conflict
- 03MINORGoing Concern = False explicitly states the franchisor may not survive as ongoing business
- 04MED5% royalty on room revenue with undisclosed destination marketing fees creates hidden cost structure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Hennepin County, Minnesota (litigation forum) |
| Jury trial waiver | Yes |
| Governing law | MN |
| Litigation count | 6 |
View Item 3 litigation summary
No litigation required to be disclosed for the Radisson RED brand specifically. Disclosed cases relate to the Radisson brand: (1) Radisson v. AIL Hospitality, LLC & Ailawadi (D. Minn., breach of license/guaranty; counterclaims); (2) Norma Knuth v. Radisson et al. (Saskatchewan class action re destination marketing fees); (3) Radisson v. 205 Wolf Holdings/Inner Circle Licensees (D. Minn./Hennepin Cty., breach of license/global settlement; counterclaims; some defendants in Ch.11); plus 3 Radisson-initiated collection actions in the last fiscal year (Ronit Hospitality; Rochester Airport Hospitality; iBorrow 2945 OKC Owner).
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- Minneapolis, MN; Your Hotel; Regional locations; Online
- Ongoing training
- Required
- POS system
- ORACLE Opera Cloud PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ORACLE Opera Cloud PMS
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Radisson RED · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Radisson RED franchise?
The total investment to open a Radisson RED franchise ranges from $7.1M – $41.8M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Radisson RED franchise owners earn?
Radisson RED does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Radisson RED FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Radisson RED FDD and qualifies whose outlets they describe.
What is Radisson RED's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Radisson RED (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Radisson RED franchise locations are there?
As of their most recent FDD filing, Radisson RED has 2 total units in the United States, including 1 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Radisson RED a good franchise to buy?
FranchiseVerdict rates Radisson RED as a D-grade franchise with a verdict score of 34 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Radisson RED, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.