Red RobinFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Red Robin franchise requires a total initial investment of $2.7M – $5.8M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $2.7M – $5.8M
- 48th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 498
- 47th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1979. Systems this mature have refined operations and brand recognition.
Franchised units fell from 97 to 91 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $2.7M – $5.8M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- System contracting at -6.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Red Robin International, Inc.
- Parent company
- Red Robin Gourmet Burgers, Inc.
- Incorporated in
- NV
- HQ
- 10000 East Geddes Avenue, Suite 500, Englewood, Colorado 80112
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.3M prior year
Overview
About
Franchisees operate casual dining burger restaurants serving made-to-order gourmet burgers, appetizers, and beverages in full-service environments. Day-to-day operations include managing 40-80+ staff across kitchen and front-of-house, maintaining food quality and brand consistency, inventory management, local marketing, and driving customer traffic during high-pressure lunch and dinner service periods.
- CEO
- David A. Pace
- Headquarters
- CO
- Founded
- 1969
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $100K | $200K |
| Equipment, build-out, other | $2.6M | $5.5M |
| Total initial investment | $2.7M | $5.8M |
Source: Red Robin 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.7M – $5.8M
- Near category avg vs category
- Liquid capital req'd
- $100K – $200K
- Near category avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Red Robin Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 498
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.2%
- Company-owned
- 407
- Corporate units in the system
- % franchised
- 18%
- vs corporate-owned
- Net growth (yr3)
- -1.1%
- Net unit change last year
- 3-yr CAGR
- -6.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $518K
- Median loan
- $518K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
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
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Red Robin's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Red Robin presents CAUTION-level risk: a contracting franchise system with non-disclosed unit economics, high capital requirements, and historical legal disputes that obscure true franchisee profitability potential.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 75 / 100 rating
- 01MINORDeclining unit count (-1.1% YoY) indicates system contraction and potential market saturation or performance issues
- 02MINORNo Item 19 financial performance disclosure (Avg Revenue and Net Income not provided) prevents informed ROI analysis on $2.7M-$5.8M investment
- 03MINORHigh initial investment range ($2.7M-$5.8M) combined with 5% royalty creates significant financial burden without transparent profitability benchmarks
- 04HIGHPrior litigation (2016 trademark/franchise agreement disputes with LVRG) suggests franchise agreement enforcement challenges and franchisor-franchisee relationship risks
- 05MINORCasual dining segment experiencing structural headwinds; declining unit count may reflect category-wide weakness rather than brand-specific strength
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 594 hrs
- POS system
- Aloha/NCR Voyix
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha/NCR Voyix
Item 20 · call current owners
Franchisee Contacts
76 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Red Robin · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Red Robin franchise?
The total investment to open a Red Robin franchise ranges from $2.7M – $5.8M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Red Robin franchise owners earn?
Red Robin 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 Red Robin's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Red Robin (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 Red Robin franchise locations are there?
As of their most recent FDD filing, Red Robin has 498 total units in the United States, including 97 franchised units and 407 company-owned units.
Is Red Robin a good franchise to buy?
FranchiseVerdict rates Red Robin as a D-grade franchise with a risk score of 75 out of 100, 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.
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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.