Red’s Savoy Pizza Franchise Cost, Revenue & Review 2026
- Investment
- $202K – $508K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 15 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Red's Savoy Pizza is a pizza franchise known for its Sota-style pizza with a crispy crust and tangy sauce. Franchisees run the restaurants, managing food prep, staffing, and dine-in and takeout.
FranchiseVerdict summary · 2026
A Red’s Savoy Pizza franchise requires a total initial investment of $202K – $508K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2022 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above 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 scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $202K – $508K
- 23rd pct Service Resta…
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 17
- 48th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants 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 $202K – $508K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHPositive: net +2 franchised outlets in the latest year (2 opened, 0 closed) (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- RSP Franchise, LLC
- Predecessor
- Red's Savoy Franchise, LLC; Red's Savoy Holdings, LLC; Red's Savoy USA, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Reed Daniels
- CEO experience
- 11 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Minnesota
- HQ
- 574 Prairie Center Drive, Suite 135-314, Eden Prairie, Minnesota 55344
- Auditor
- GTL, LLP
- Audited financials
- Franchisor revenue
- $1.5M
- vs $919K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Reed Daniels
- Headquarters
- MN
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 27% below the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $40K | |
| Rent and Security Deposit | $5K | $12K | |
| Leasehold Improvements | $26K | $169K | |
| Equipment, Furniture and Trade Fixtures | $76K | $175K | |
| Computer Systems, Technology Fee, installation and training | $17K | $25K | |
| Opening Inventory, Supplies and Smallwares | $8K | $12K | |
| Signage | $5K | $15K | |
| Uniform and Branded Print | $2K | $6K | |
| Licenses | $2K | $3K | |
| Legal and Accounting Expenses | $2K | $4K | |
| Grand Opening Advertising | $10K | $10K | |
| Travel and Living Expenses While Training | $500 | $8K | |
| Insurance | $2K | $4K | |
| Extension Fee | $0 | $500 | |
| Additional Funds – 3 months | $12K | $25K | |
| Total initial investment | $202K | $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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $202K – $508K
- Top 40% of category vs category
- Liquid capital req'd
- $12K – $25K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- 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 |
| Inventory (initial) | $8K – $12K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2022 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Red’s Savoy Pizza is on file. 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 Red’s Savoy Pizza 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
Includes company-owned outlets
- Item 19 type
- historical gross revenue by tier (13 franchised + 1 affiliate-owned outlets open all of 2021)
- Sample size
- 14
- vs category median 19
- Range (low → high)
- $521K→$1.0MCited, not corroborated — printed on page 53 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
Compared against 781 Quick-Service Restaurants brands
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 8.0% (near the Quick-Service Restaurants median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 Quick-Service Restaurants medians
How Red’s Savoy Pizza Compares
Category median of published Quick-Service Restaurants 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
- 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
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
- Limited · 15 loans
- Limited SBA coverage: 15 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 15 loans
- 5-yr charge-off
- Limited · 15 loans
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 2
- Typical loan rate
- 6.5%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- 402
- Lender concentration
- N/A
Borrower mix: 47% went to startups / new businesses, 53% to established operators
Top lenders financing Red’s Savoy Pizza franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Red’s Savoy Pizza from SBA 7(a) FOIA data.
- Avg interest rate
- 6.51%
- Avg chargeoff amount
- $450K
- Jobs supported
- 402
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Platinum Bank | 9 | N/A | N/A |
| 2 | Sunrise Banks National Association | 2 | N/A | N/A |
| 3 | Starion Bank | 1 | N/A | N/A |
| 4 | Scale Bank | 1 | N/A | N/A |
| 5 | Old National Bank | 1 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 14 | 0 | -- |
| NDNorth Dakota | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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)
Total franchisor revenue for 2021 was $1,543,188; required-purchase revenue of $373,082 was approximately 24.2% of that total.
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 50 / 100 verdict
- 01HIGHSingle resolved litigation matter, no money exchanged
- 02MINORNo bankruptcy, no going-concern, audited
- 03MINORFlat growth (0.1%)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| 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 |
| Termination groundsℹ | 12 |
| 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
- Ongoing training
- Required
- Field support
- 32 hrs/yr
- On-site visits per year
- Franchisor financing
- Not offered
- Item 10
- POS system
- Speedline Solutions
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Speedline Solutions
Item 20 · call current owners
Franchisee Contacts
16 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 Red’s Savoy Pizza franchise?
The total investment to open a Red’s Savoy Pizza franchise ranges from $202K – $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?
Item 19 of the Red’s Savoy Pizza FDD discloses outlet figures from $521K to $1.0M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Red’s Savoy Pizza?
Red’s Savoy Pizza is franchised by RSP Franchise, LLC. Source: FDD Item 1, 2022 filing.
What is Item 19 in the Red’s Savoy Pizza 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 Red’s Savoy Pizza FDD and qualifies whose outlets they describe.
What is Red’s Savoy Pizza's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Red’s Savoy Pizza (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’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 B-grade franchise with a verdict score of 50 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
Are you the franchisor?
If you represent Red’s Savoy Pizza, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.