FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Red Robin Restaurants.
Based on 2025 FDD · 2 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Red Robin Restaurants franchise shows an estimated initial investment of $2.7M – $5.8M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $35K franchise fee · 9% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Red Robin Restaurants requires a total initial investment of $2.7M to $5.8M (midpoint approximately $4.2M), with an initial franchise fee of $35K. The ongoing fee burden is 9% (5% royalty plus 4% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
Red Robin Restaurants does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Red Robin Restaurants operates approximately 92 franchised units. However, the brand has been contracting with a 9.3% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Common questions buyers ask about Red Robin Restaurants, answered from FDD and SBA data.
The total initial investment for a Red Robin Restaurants franchise ranges from $2.7M to $5.8M, according to their Franchise Disclosure Document.
Red Robin Restaurants charges a 5% royalty fee on gross sales.
The initial franchise fee for Red Robin Restaurants is $35,000.
There are approximately 92 Red Robin Restaurants franchise locations as of 2023.
Profit data for Red Robin Restaurants is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
SBA loan default rate data for Red Robin Restaurants is not currently available in the SBA database.
Whether a Red Robin Restaurants franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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