Red Robin Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Red Robin is a casual-dining franchise known for gourmet burgers, bottomless steak fries, and a family-friendly atmosphere. Franchisees operate full-service restaurants managing a large kitchen and service staff across busy lunch and dinner service.
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). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $2.7M – $5.8M
- 52nd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 498
- 49th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants 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
- 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 A (Strongest tier), verdict score 61/100 (higher is better).
- 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
Corporate structure & franchisor financials
- Legal entity
- Red Robin International, Inc.
- Parent company
- Red Robin Gourmet Burgers, Inc.
- CEO title
- President and Chief Executive Officer
- David A. Pace
- Incorporated in
- Nevada
- 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
- CEO
- David A. Pace
- Headquarters
- CO
- Founded
- 1969
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 351% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $100K – $200K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category 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.
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 9.0% — above the Full-Service Restaurants average of 7.6%.
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 Full-Service Restaurants averages
How Red Robin Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
3-year detail · Item 20
- Transfers (3yr)
- 0
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
- N/A
- limited sample (1 loan) — 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
- 1
- 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
Established (1979) system of 498 units with only 2 related litigation matters, both settled in 2016. No bankruptcy, no going-concern, audited financials. No Item 19 disclosed is a minor gap but overall a clean, mature franchisor; financials mostly company-owned (407) operations.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 61 / 100 verdict
- 01HIGHOnly 2 old settled litigation matters (2016)
- 02MINORNo bankruptcy/going-concern; audited financials
- 03MINORMature 498-unit system since 1979
- 04MINORMinor: no Item 19 disclosure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 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.
Is Red Robin a good franchise to buy?
FranchiseVerdict rates Red Robin as a A-grade franchise with a verdict score of 61 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?
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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.