Bottom line
- Total investment $7.1M – $41.8M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 84/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- No 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Radisson RED unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Franchisees operate upscale, design-focused hotel properties under the Radisson RED brand, managing daily operations including guest services, housekeeping, food & beverage, and revenue management. They pay 5% of total room revenue in royalties plus undisclosed marketing fees to support brand marketing, reservations systems, and corporate services across a 20-year term.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 84 / 100 rating
- 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
- 03HIGHGoing Concern = False explicitly states the franchisor may not survive as ongoing business
- 04MEDNo disclosed average revenue or net income prevents ROI validation on $7-41M investment range
- 05MED5% royalty on room revenue with undisclosed destination marketing fees creates hidden cost structure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Radisson RED · FDD (2022) PDF