Radisson RED Franchise Cost, Revenue & Review 2026
- Investment
- $7.1M – $41.8M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (5)
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $7.1M – $41.8M
- 35th pct Lodging
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 2
- 11th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 34/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Radisson Hotels International, Inc.
- Parent company
- Radisson Hospitality, Inc.
- FDD Item 1, page 9 of the 2022 FDD
- Ultimate parent
- Shanghai State-Owned Assets Supervision and Administration Commission (via Jinjiang International Holdings Co., Ltd.)
- FDD Item 1, page 9 of the 2022 FDD
- Incorporated in
- Delaware
- HQ
- 1601 Utica Avenue South, Suite 700, St. Louis Park, Minnesota 55416
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $221.6M
- vs $198.3M prior year
Same owner · FDD Item 1, page 9
1 other brand on this site name Shanghai State-Owned Assets Supervision and Administration Commission (via Jinjiang International Holdings Co., Ltd.) as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2022 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 175% 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%
- 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% |
| 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Radisson RED unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 8.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Radisson RED Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- 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.
Where the owners are · Item 20 owner list
7 current owners across 4 states.
- CA 4
- FL 1
- MN 1
- TN 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (5)
- Insufficient SBA coverage: 5 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (5)
- 5-yr charge-off
- Under 10 loans (5)
- 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)
Subject: the franchisor is a named party (defendant).
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)
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. Item 8 states the franchisor's own total revenue as $38,226,847 (FY ending 2021-12-31); the statements above are the parent's.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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
- 03MED5% 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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Radisson RED?
Radisson RED is franchised by Radisson Hotels International, Inc.. Its parent company is Radisson Hospitality, Inc.. The ultimate parent named in the FDD is Shanghai State-Owned Assets Supervision and Administration Commission (via Jinjiang International Holdings Co., Ltd.). Source: FDD Item 1, 2022 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.