Key Numbers
5
Total units open
1
Units opened last year
1
Units closed last year
0
Net unit growth
The Red Collection Franchise
Hospitality & Travel FDD 2026 Founded 2017 · 9+ yrs Item 19 disclosed
Data extracted from The Red Collection's 2026 Franchise Disclosure Document, filed under FTC Rule 16 CFR 436. How we analyze FDDs →
Initial investment
$223K - $1.6M
Franchise fee
$30K
System size
5 (+1)
Royalty
4.5%
The Verdict
Quick Verdict · who it fits
The Red Collection fits first-time franchise buyers looking for an emerging hospitality concept.
✓ Strengths
- ✓Discloses Item 19 financial performance
Key FDD Facts
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$223K - $1.6M
Franchise fee (Item 5)
$30K
Royalty (Item 6)
4.5% + 3% ad
System size (Item 20)
5 +1
Years in business
9+ yrs
Model The Red Collection's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
What you'd pay the franchisor
Drag to your projected annual sales. Royalty 4.5% + ad fund 3% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (4.5%)
—
Ad fund (3%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
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What's inside
Franchise Overview
Costs & Fees Breakdown
Your Obligations
Franchisor Obligations
Financial Statements
Contracts Summary
Unit Economics
Network Health
Litigation Risk
Earnings Analysis
Financial Fit Analysis
Buyer Verdict
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Research, not legal advice. Use this report alongside professional legal and financial review before signing any franchise agreement.
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Competitive intelligence for franchisors →Executive Summary
Free AI summary — the first read on the filing.
AI Due Diligence Findings PREMIUM
What our analysis flagged across the 2026 filing.
4
Risks to review
3
Strengths identified
5
Questions to ask
Industry Benchmarks
How The Red Collection ranks against 81 Hospitality & Travel peers we've analyzed.
Initial investment
22nd pct · of 81 peers
Franchise fee
32nd pct · of 81 peers
System size
23rd pct · of 81 peers
Hospitality & Travel industry averages
Avg investment
$7.6M - $24.5M
Avg franchise fee
$42K
Avg system size
241
Franchises analyzed
81
How The Red Collection stacks up
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| The Red Collection | Disclosed | $30K | $223K - $1.6M | 4.5% | 5 |
| Avis Rent a Car System Similar price | None | $45K | $626K - $1.6M | 7.5% | 189 |
| Cp Biggest system | Disclosed | $11K | $2K - $21K | 1.5–3% | 3,124 |
| Ta Top-rated in category | None | $140K | $1.5M - $14.1M | 2–4.5% | 33 |
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Frequently asked questions
How much does a The Red Collection franchise cost?
The Red Collection requires a $30,000 initial franchise fee and a total initial investment range of $222,875–$1,611,250, per the most recent FDD on file.
Who owns The Red Collection?
The Red Collection franchises are sold by The Red Collection, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
Does The Red Collection disclose financial performance (Item 19)?
Yes. The Red Collection discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
What ongoing fees does The Red Collection charge?
Franchisees pay a royalty of 4.5% and an advertising fund contribution of 3% on gross sales as defined in Item 6 of the FDD.
How many The Red Collection locations are there?
As of their 2026 FDD, The Red Collection has 5 total locations, with 1 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Franchise research guides
Free explainers to go deeper before you sign.
Industry
Browse all Hospitality & Travel franchises
FDD basics
What is a Franchise Disclosure Document?
Costs
Understanding Item 7: Estimated Initial Investment
Earnings
Item 19: Financial Performance Representations
Due diligence
Franchise Red Flags to Watch For
Validation
How to Validate a Franchise Opportunity
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