How Much Does a Radisson RED Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$7.1M – $41.8M
Franchise Fee
$75K
Royalty
5.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Radisson RED is $75K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Radisson RED franchise requires a total investment of $7.1M – $41.8M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $1.5M to $2.0M.
Ongoing Costs
Beyond the initial investment, Radisson RED franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (5% of Total Rooms Revenue). The advertising or brand fund contribution is 2.0% of gross sales.
Net Worth & Liquid Capital Requirements
Radisson RED requires working capital of $1.5M – $2.0M to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Radisson RED does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Radisson RED?
SBA Loans Issued
7
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Radisson RED has 7 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Radisson RED franchise owners
Get verified franchisee phone numbers for due diligence
See full Radisson RED research
Risk analysis, unit growth, contract terms, and more
Compare Radisson RED to similar franchises
Side-by-side investment, revenue, and risk comparison