The Red BirdFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Red Bird franchise requires a total initial investment of $290K – $1.2M, including a $65K franchise fee and an ongoing 7.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $290K – $1.2M
- 17th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $290K – $1.2M including a $65K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 60/100.
- 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
- Legal entity
- The Red Bird Franchise Inc.
- Incorporated in
- DE
- HQ
- 8 The Green, Suite A, Dover, Delaware 19901
- Auditor
- Hussein Sbeitan, CPA
- Audited financials
Overview
About
The Red Bird franchisees operate [BUSINESS TYPE NOT DISCLOSED IN PROVIDED DATA]. Day-to-day operations likely involve [INSUFFICIENT DATA]. Without knowing the actual business model, location type, or service offering, franchisee responsibilities cannot be assessed.
- CEO
- Ahmad Ashkar
- Headquarters
- DE
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $50K | $150K |
| Equipment, build-out, other | $175K | $943K |
| Total initial investment | $290K | $1.2M |
Source: The Red Bird 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
- $290K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $50K – $150K
- Better than avg vs category
- Franchise fee
- $65K – $65K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 14.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $5 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 14.0% 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 The Red Bird Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- 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
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Red Bird presents extreme risk due to going concern status, micro-scale operation (3 units), complete financial opacity, and unsubstantiated ROI potential for a $289K–$1.16M investment.
Litigation (Item 3)
No litigation information is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Hussein Sbeitan, CPA
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 60 / 100 rating
- 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
- 02MEDOnly 3 units in system suggests minimal scale, limited support infrastructure, and unproven model
- 03MINORZero financial disclosure (revenue, net income, Item 19) prevents ROI validation and suggests poor performance
- 04MEDHigh initial investment range ($289.5K–$1.16M) with no disclosed average unit economics creates severe risk-reward imbalance
- 05MINORUnknown unit growth trajectory indicates system is either stagnant or contracting
- 06MED7% royalty on undisclosed revenue means franchisee profitability cannot be verified
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 25 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- POS system
- Fast Four
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Fast Four
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Red Bird · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Red Bird franchise?
The total investment to open a The Red Bird franchise ranges from $290K – $1.2M, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Red Bird franchise owners earn?
The Red Bird 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 The Red Bird's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Red Bird (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 The Red Bird franchise locations are there?
As of their most recent FDD filing, The Red Bird has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is The Red Bird a good franchise to buy?
FranchiseVerdict rates The Red Bird as a B-grade franchise with a risk score of 60 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.
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.