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RED ROBIN
Red Robin International, Inc. franchises casual dining, full-service RED ROBIN® Restaurants that specialize in a large variety of highly craveable and customizable gourmet burgers, bottomless sides, and spirits in a fun, welcoming environment for guests of all ages. The business model grants rights to operate under proprietary marks using a standardized system of designs, methods, standards, and procedures, with options for single-unit franchises or multi-unit area development agreements. It targets a broad consumer base across various income levels, competing in the highly competitive restaurant industry with emphasis on taste, quality, price-value, and dining experience.
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Franchise Costs
5% royalty + up to 4% maximum advertising obligation (NAP, RAP, LAP fees)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataRED ROBIN Franchise Analysis
Gourmet burgers draw crowds to Red Robin's fun casual dining spots, but franchising here comes with hidden tensions in a maturing system. Franchise documents reveal fluctuating unit counts and a lopsided corporate-franchisee split, alongside resolved but notable legal disputes. What do these signals say about betting millions on this brand's future?
Item 7 in the 2025 FDD pegs initial investment at $2,705,000-$5,785,000 for a full-service restaurant, well above casual dining norms where many hover under $2M—think setup costs for prime real estate, kitchen gear, and buildout in high-traffic areas. The $35,000 franchise fee is standard, but ongoing 5% royalty plus up to 4% brand/ad fund (split across NAP, RAP, LAP) adds pressure in a 91-franchisee system dwarfed by 407 corporate-owned units. No Item 19 means zero disclosed revenue or earnings data, forcing reliance on opaque profit estimates; average unit volumes aren't public, but the high capex screams need for $3M+ annual sales to break even after fees.
System health flashes yellow: locations dipped from 81 franchised in 2023 to 79 in 2024 (-2% contraction), signaling caution amid restaurant industry churn—no projected openings detailed, and transfers/terminations aren't broken out but litigation like the 2016 Lehigh Valley settlement over breach, trademarks, and non-renewal hints at friction. SBA data shows just 2 loans averaging $1,985,000, low volume implying limited franchisor support or lender wariness versus peers with dozens. For investors, this screams corporate dominance over expansion—pouring $3M+ into a shrinking franchise pool risks stranded assets if company stores encroach; crunch your own comps before leaping.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How RED ROBIN Compares
Key Insights
- Higher investment than 84% of Casual Dining franchises
- Top 10 largest franchise system in Casual Dining
- Higher than average SBA loan default rate in Casual Dining
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
RED ROBIN Current | $2.7M – $5.8M | $35K | 5.0% | 91 |
| IHOP & INTERNATIONAL HOUSE OF PANCAKES | $1.8M – $4.5M | $69K | N/A | 1,703 |
| BUFFALO WILD WINGS | $2.5M – $4.9M | $25K | 5.0% | 549 |
| GOLDEN CORRAL STEAKS, BUFFET & BAKERY | $2.1M – $8.5M | $50K | 4.0% | 352 |
| GOLDEN CORRAL | $1.5M – $6.2M | $50K | 4.0% | 344 |
| ORIGINAL PANCAKE HOUSE (THE) | $483K – $1.7M | $60K | 2.0% | 150 |
Casual Dining Average 44 franchises | $1.5M – $3.5M | $44K | 4.7% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 44 Casual Dining franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+1 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for RED ROBIN franchisees (2024 – 2024)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
2 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
57 franchisee contacts on file from official FDD filings.
57 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Disputes with franchisee Lehigh Valley Restaurant Group, Inc. involving breach of franchise agreement, trademark infringement and unfair competition after agreement expiration, and counterclaims for failure to renew franchise and area development agreements. Settled in 2016.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a RED ROBIN franchise ranges from $2,705,000 to $5,785,000. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.