Red’s Savoy PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Red’s Savoy Pizza franchise requires a total initial investment of $78K – $508K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2022 FDD, average unit revenue was $770K[2]. SBA 7(a) loans show a 50.0% charge-off rate across 15 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $78K – $508K
- 5th pct Service Resta…
- Avg gross sales
- $770K
- 23rd pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 17
- 45th pct Service Resta…
- SBA default
- 50.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
50.0% of SBA loans charged off across 15 loans, above the 16% franchise average.
Bottom line
- Total investment $78K – $508K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $770K/year.
- Verdict D (Below Average) with a risk score of 75/100. SBA loan charge-off rate of 50.0% across 15 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- RSP Franchise, LLC
- Ultimate parent
- None
- CEO title
- Chief Executive Officer, President, and Owner
- Reed Daniels
- CEO experience
- 11 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MN
- HQ
- 574 Prairie Center Drive, Suite 135-314, Eden Prairie, Minnesota 55344
- Auditor
- GTL, LLP
- Audited financials
- Franchisor revenue
- $919K
- vs $1.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Red's Savoy Pizza franchisees operate casual pizzerias serving traditional or specialty pizza in limited-service or dine-in formats. Day-to-day operations include food preparation (dough, toppings, baking), point-of-sale management, staff supervision, inventory control, and customer service—typical for quick-service or casual dining pizza concepts.
- CEO
- Reed Daniels
- Headquarters
- MN
- Founded
- 2009
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $40K | |
| Rent and Security Depositnot refundable | $0 | $12K | |
| Leasehold Improvementsnot refundable | $0 | $169K | |
| Equipment, Furniture and Trade Fixturesnot refundable | $0 | $175K | |
| Computer Systems, Technology Fee, installation and trainingnot refundable | $17K | $25K | |
| Opening Inventory, Supplies and Smallwaresnot refundable | $5K | $12K | |
| Signagenot refundable | $5K | $15K | |
| Uniform and Branded Printnot refundable | $2K | $6K | |
| Licensesnot refundable | $0 | $3K | |
| Legal and Accounting Expensesnot refundable | $2K | $4K | |
| Grand Opening Advertisingnot refundable | $5K | $10K | |
| Travel and Living Expenses While Trainingnot refundable | $500 | $8K | |
| Insurancenot refundable | $2K | $4K | |
| Extension Feenot refundable | $0 | $500 | |
| Additional Funds - 3 monthsnot refundable | $5K | $25K | |
| Total initial investment | $78K | $508K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$108K
14.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $78K – $508K
- Better than avg vs category
- Liquid capital req'd
- $5K – $25K
- Better than avg vs category
- Franchise fee
- $35K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $685 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $770K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 14 units
- vs category median 28
- Range (low → high)
- $521K→$1.0M
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Red’s Savoy Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 2
- 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
- 2
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
- Net growth (yr3)
- +15.4%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- 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 · 13 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $5.0M
- Median loan
- $335K
- average
- Charge-off rate
- 50.0%
- 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
- 50.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Red’s Savoy Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
A 50.0% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Red's Savoy Pizza presents cautionary risk due to undisclosed financials, prior litigation, unprotected territory, and small system size—making ROI validation impossible and competitive positioning vulnerable.
Litigation (Item 3)
P & L Hagness, Inc. v. Reed Daniels and RSP Franchise, LLC (District Court, State of Minnesota, Fourth Judicial District, File No. 27-cv-20-118). Complaint filed January 16, 2020 by franchisee operator alleging tortious interference, unfair competition, trade practices violations, and unlawful restraint of trade related to compliance demands for tradenames and proprietary products. RSP filed answer with counterclaims for trademark infringement, deceptive trade practices, unjust enrichment, breach of contract, and violation of Minnesota Uniform Trade Secrets Act. Case settled March 2020 with P&L dismissing claims and exiting Red's Savoy Pizza system in exchange for agreement termination without monetary exchange. Both parties dismissed their respective claims.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GTL, 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 75 / 100 rating
- 01MINORNo Item 19 financial disclosure (average revenue and net income) prevents ROI validation and profitability assessment
- 02HIGHLitigation in 2020 involving standards compliance suggests operational/quality control issues within the system
- 03MINORUnprotected territory creates direct competition risk from other Red's Savoy franchisees in your market
- 04MEDModest unit growth (15.4% YoY) with only 17 total units indicates limited scale and brand recognition
- 05MEDHigh investment range ($78K-$508K) with no disclosed average unit economics creates uncertainty on capital recovery timeline
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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 1 |
View Item 3 litigation summary
P & L Hagness, Inc. v. Reed Daniels and RSP Franchise, LLC (District Court, State of Minnesota, Fourth Judicial District, File No. 27-cv-20-118). Complaint filed January 16, 2020 by franchisee operator alleging tortious interference, unfair competition, trade practices violations, and unlawful restraint of trade related to compliance demands for tradenames and proprietary products. RSP filed answer with counterclaims for trademark infringement, deceptive trade practices, unjust enrichment, breach of contract, and violation of Minnesota Uniform Trade Secrets Act. Case settled March 2020 with P&L dismissing claims and exiting Red's Savoy Pizza system in exchange for agreement termination without monetary exchange. Both parties dismissed their respective claims.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 104 hrs
- Training location
- On-site at franchisee's restaurant and corporate training facility
- POS system
- Speedline Solutions
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Speedline Solutions
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Red’s Savoy Pizza · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Red’s Savoy Pizza franchise?
The total investment to open a Red’s Savoy Pizza franchise ranges from $78K – $508K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Red’s Savoy Pizza franchise owners earn?
According to Item 19 of the Red’s Savoy Pizza FDD, the average gross sales per unit is $770K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Red’s Savoy Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Red’s Savoy Pizza has a charge-off rate of 50.0% across 15 loans, meaning 50.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Red’s Savoy Pizza franchise locations are there?
As of their most recent FDD filing, Red’s Savoy Pizza has 17 total units in the United States, including 15 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is Red’s Savoy Pizza a good franchise to buy?
FranchiseVerdict rates Red’s Savoy Pizza 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.