FranchiseVerdict
The Red Bird logo
FV-02696·CAUTIONExcellent81

The Red Bird

Food & Beverage - Full ServiceFranchising since 2025Website
Investment
$290K – $1.2M
34th pct Full Service
Avg revenue
57th pct Full Service
Royalty
7.0%
87th pct Full Service
Units
3
16th pct Full Service
SBA default

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.
  • Rated CAUTION with a risk score of 75/100.
  • 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
Delaware
HQ
8 The Green, Suite A, Dover, Delaware 19901
Auditor
Hussein Sbeitan, CPA
Audited financials

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one The Red Bird unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $290K–$1.2M
Working capital
$
FDD reports $50K–$150K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$824K
Payback
94 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$290K – $1.2M
All-in to open one unit
Liquid capital
$50K – $150K
Cash you must have on hand
Franchise fee
$65K
Royalty
7.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
14.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0+2
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

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.

Score breakdown · what drove the 75 / 100 rating

  1. 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
  2. 02MEDOnly 3 units in system suggests minimal scale, limited support infrastructure, and unproven model
  3. 03MINORZero financial disclosure (revenue, net income, Item 19) prevents ROI validation and suggests poor performance
  4. 04MEDHigh initial investment range ($289.5K–$1.16M) with no disclosed average unit economics creates severe risk-reward imbalance
  5. 05MINORUnknown unit growth trajectory indicates system is either stagnant or contracting
  6. 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

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Virginia

Item 11

Training & Operations

Classroom training
20 hrs
On-the-job training
25 hrs
POS system
Fast Four
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

1 numbers

Locked
(213) 576-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

The Red Bird · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above