Red Robin

Red Robin, a Red Robin International franchise, has been franchising since 1978 — 9 years after the concept was founded in 1969 , currently with 510 total locations (185 franchised, 325 company-owned — a 36% franchise-to-corporate ratio that signals the operator's reliance on independent owners) in the food & beverage sector, headquartered in CO. According to the 2024 FDD, the total initial investment ranges from $2.4M to $5.9M — a 146% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $35K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 4.0% of gross sales with an additional 0.5% national advertising fund contribution, bringing the combined ongoing cost to 4.5% of every dollar in sales. Notably, Red Robin does not disclose financial performance (Item 19) in its FDD. That is common (Item 19 is optional under the FTC Franchise Rule) but it puts the burden on prospective buyers to survey existing franchisees (Item 20 contact list), model unit economics from public comparables, and demand validated profit-and-loss data before signing.

Network momentum is currently negative: Red Robin contracted by 2.0% year-over-year with 20 closures on the record. Contraction warrants careful investigation — it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.