How Much Does a The Red Collection Franchise Cost?

Initial Franchise Fee

The initial franchise fee for The Red Collection is $35K. 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 The Red Collection franchise requires a total investment of $221K – $1.6M. 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 $112K to $154K.

Ongoing Costs

Beyond the initial investment, The Red Collection franchisees pay ongoing fees. The royalty fee is 4.5% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 3.0% of gross sales. There is also a technology fee of $15K.

Net Worth & Liquid Capital Requirements

The Red Collection requires working capital of $112K – $154K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.