2026 FDD Issued Apr 29, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
Red Robin Franchise Cost (2026)
A Red Robin franchise costs an estimated $2,705,000 – $5,785,000 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $35,000 initial franchise fee (Item 5) and covers this format: Freestanding Prototype Building. Item 6 lists royalty fee: 5% of Gross Sales, subject to the conditions below.
- Total investment
- $2.71M – $5.79MItem 7 source and qualifications
- Franchise fee
- $35KItem 5 source and terms
- Royalty
- 5% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- See Item 6Item 6 conditions and fee bases apply
- Units (2025)
- 464Item 20 source and scope
- Franchise exit rate
- 2.8% / yrCalculated 3-year average; definition and source
What stands out about Red Robin
Franchising is a small, static corner of this system. Item 20 counts 79 franchised restaurants out of 464 in total at the end of 2025, with no franchised openings after 2023 and no signed agreements waiting to open. Most of the movement is on the company side, where closures reduced the company-owned count every year.
The building is the cost. Item 7 assumes a freestanding prototype, and building construction is the largest line, ahead of furniture, fixtures and equipment, in an estimate of $2,705,000 – $5,785,000. That total leaves out both the real estate and the liquor license, and the notes say a license bought from an existing holder in a quota state can cost far more than a license issued directly.
The franchise agreement runs 20 years with no right to renew, and ending it through default or abandonment triggers liquidated damages tied to the average monthly royalty. Alongside a royalty of 5% of Gross Sales, the franchisor sets the advertising fees itself up to a combined cap, and Item 11 does not state the rate a new franchisee would pay.
There is no Item 19, so the FDD gives no sales or profit figures for franchised or company-owned restaurants. A buyer would need to ask current franchisees, listed in Exhibit E, for operating results and for the advertising rate they pay today.
What are the initial franchise fees and financial requirements for Red Robin?
Item 5 lists an initial franchise fee of $35,000 for Red Robin. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF page 12): $35,000 per restaurant, due within 10 days after the Franchise Agreement's effective date and non-refundable, except that the franchisor may terminate and refund it if you cannot secure the required liquor license by opening. If you sign an Area Development Agreement, a development fee of $12,500 per restaurant in the development schedule is paid in one lump sum at signing and is non-refundable. No company-owned restaurants were sold in fiscal 2025.
Source: Red Robin 2026 FDD, Item 5, PDF p. 12.
This record lists no minimum net worth or liquid-capital requirement for Red Robin, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Red Robin franchise? (Item 7)
Source: Red Robin 2026 FDD, Item 7, PDF p. 18.
Item 7 of Red Robin’s 2026 Franchise Disclosure Document estimates the total cost to open one freestanding prototype building at $2,705,000 – $5,785,000. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Real Estate | Variable | Variable |
| Small Wares & Supplies | $40,000 | $50,000 |
| Initial Inventory | $40,000 | $50,000 |
| Pre-Opening Expenses | $200,000 | $300,000 |
| Annual Insurance Premium for First Year's Coverage | $50,000 | $80,000 |
| Liquor License | Variable | Variable |
| Site Work | $75,000 | $500,000 |
| Pre-construction, Due Diligence, Design Costs, Permits | $125,000 | $400,000 |
| Building Construction Costs | $1,200,000 | $2,800,000 |
| Furniture, Fixtures, Decor Items and Equipment | $750,000 | $1,250,000 |
| Exterior Signage | $90,000 | $120,000 |
| Additional Funds - 3 Months | $100,000 | $200,000 |
| Total | $2,705,000 | $5,785,000 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 18-21) prints $2,705,000 to $5,785,000 for a freestanding prototype building, excluding real estate and the liquor license; its 11 priced lines add to that total. Sites range from about 10,000 to 87,000 square feet. Note 6 says liquor licenses for the franchisor's own restaurants have cost from $3,500 to $750,000 or more, with the highest prices in quota-based states where a license must be bought from an existing holder.
What ongoing royalties and fees does Red Robin charge? (Item 6)
Source: Red Robin 2026 FDD, Item 6, PDF p. 13.
Item 6 of Red Robin’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 5% of Gross Sales | Every period | 5% of Gross Sales, due by the 15th day of each 28-day Accounting Period for the prior period (13 periods a year). (Item 6, PDF p. 13) |
| NAP Fee, RAP Fee, LAP Fee and Maximum Advertising Obligation | Varies | When it applies | The combined National, Regional and Local Advertising Program fees cannot exceed 4% of Gross Sales, due each Accounting Period. The franchisor currently runs a national advertising fund and a cooperative advertising program and may require you to join those or the NAP, RAP and LAP (note 6). (Item 6, PDF p. 13) |
| National Advertising Program Fee (NAP Fee) | Varies | When it applies | Set by the franchisor up to the Maximum Advertising Obligation if it requires you to participate; may be raised on 10 days' notice. (Item 6, PDF p. 13) |
| Regional Advertising Program Fee (RAP Fee) | Varies | When it applies | Subject to the Maximum Advertising Obligation if the franchisor requires you to participate. (Item 6, PDF p. 13) |
| Local Advertising Program Fee (LAP Fee) | Varies | When it applies | Subject to the Maximum Advertising Obligation if the franchisor requires you to participate. (Item 6, PDF p. 13) |
| Late Charge | $500 | When it applies | $500 for each delinquent fee payment. (Item 6, PDF p. 14) |
| Opening Crew | Varies | When it applies | Reimbursement of travel, lodging, meals and wages if the franchisor requires its opening crew for up to 20 days around opening. (Item 6, PDF p. 14) |
| Correction of Deficiencies at Restaurant | Varies | When it applies | A reasonable fee and expenses if the franchisor corrects deficiencies you fail to fix after inspection. (Item 6, PDF p. 14) |
| Approval of Alternate Supplier | Varies | When it applies | Not more than the reasonable cost of research, inspection and testing of a proposed supplier. (Item 6, PDF p. 14) |
| Audit | Varies | When it applies | Any underpayment plus interest; audit cost too if you understate by more than 2% of Gross Sales or fail to report. (Item 6, PDF p. 14) |
| Information Security Audit | Varies | When it applies | Actual cost of a data security and privacy audit of the restaurant and your computer system. (Item 6, PDF p. 14) |
| Transfer | $10,000 | When it applies | $10,000 before any transfer of the restaurant, the agreement or an ownership interest. (Item 6, PDF p. 15) |
| Cost and Attorneys' Fees | Varies | When it applies | Due to the prevailing party in any dispute resolution proceeding. (Item 6, PDF p. 15) |
| Indemnification | Varies | When it applies | Reimbursement if the franchisor is held liable for claims arising from your operation of the restaurant. (Item 6, PDF p. 15) |
| Interest | Varies | When it applies | The lesser of 18% per year or the maximum legal rate on overdue amounts. (Item 6, PDF p. 15) |
| Insurance | Varies | When it applies | Cost of insurance the franchisor obtains if you fail to, plus a reasonable service fee and expenses (note 3). (Item 6, PDF p. 15) |
| Management Fee | Varies | When it applies | 10% of Gross Sales plus costs if the franchisor manages the restaurant after abandonment, default, expiration or termination while it considers buying it. (Item 6, PDF p. 15) |
| Additional and On-Site Training | Varies | When it applies | The then-current training fee per additional attendee, or for on-site training, plus trainers' travel and living expenses. (Item 6, PDF p. 16) |
| Mystery Shopper / Customer Survey Fee | Varies | When it applies | Reimbursement of third-party mystery shopper, survey and quality inspection costs if the franchisor requires it. (Item 6, PDF p. 16) |
| Liquidated Damages | Varies | When it applies | The average monthly Royalty Fee for the prior 12 months times the lesser of 24 or the months left in the term, if the franchisor terminates for your default or you abandon the restaurant or terminate without cause (note 4). (Item 6, PDF p. 17) |
| Fee to Delay Termination of Area Development Agreement | Varies | When it applies | $10,000 per month for up to one year if you miss the Development Schedule and the franchisor agrees to delay terminating (note 5). (Item 6, PDF p. 17) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Red Robin startup investment and modeled fees over 10 years
Item 6 lets the franchisor set the advertising fees (NAP, RAP and LAP) at any amount up to 4% of Gross Sales combined, and Item 11 does not state the current rate a new franchisee would pay. Without a stated current rate, this record does not produce an annual fee estimate or payback preset. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Red Robin franchised outlet history
Source: Red Robin 2026 FDD, Item 20, PDF p. 70.
Item 20 Table 3 reports 79 franchised outlets at the end of 2025. The company-owned table reports a further 385 outlets. Our calculated average annual franchised exit rate is 2.8% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 85 | 1 | 5 | 81 | 5.9% |
| 2024 | 81 | 0 | 1 | 80 | 1.2% |
| 2025 | 80 | 0 | 1 | 79 | 1.3% |
Franchised units went from 85 to 79 over 3 years (-6).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Red Robin’s exit rate with other brands.
4 units changed owners in 2025.
Item 20 Table 3 totals (PDF page 70) match Table 1 (PDF page 68) and the company-owned Table 4 (PDF page 73); the 5 restaurants reacquired in 2023 appear in both. The only transfers were 4 in Texas in 2025. Table 5 lists no signed but unopened franchise agreements and no projected openings for the next fiscal year. Fiscal 2025 ended December 28, 2025.
How much do Red Robin franchise owners make? (Item 19)
Source: Red Robin 2026 FDD, Item 19, PDF p. 67.
Red Robin’s 2026 FDD has no Item 19 financial performance representation, so it gives no official sales, profit or owner-pay figures. Treat any earnings claim you hear from a salesperson with caution, and ask current owners (their contacts are listed in Item 20).
Item 19 (PDF page 67) states that the franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the Red Robin franchise agreement term?
Source: Red Robin 2026 FDD, Item 17, PDF p. 54.
The standard Red Robin franchise agreement runs 20 years.
Item 17 (PDF page 54): the Franchise Agreement expires on the last day of the last calendar month of the 20th anniversary of its effective date, with no right to renew. An Area Development Agreement ends when the development schedule is completed or the last required restaurant opens, also with no renewal right.
How long does it take to open a Red Robin franchise? (Item 11)
Source: Red Robin 2026 FDD, Item 11, PDF p. 32.
Item 11 of the 2026 FDD states the time from the Effective Date of the Franchise Agreement to opening: typically within 180 days.
Franchises with a similar investment range
These published records are selected by proximity to Red Robin’s $2,705,000 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
Compare other restaurants & food franchises
Sources
Red Robin International, Inc. Franchise Disclosure Document, issued April 29, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 12
- Item 6: cited PDF p. 13
- Item 7: cited PDF p. 18
- Item 19: cited PDF p. 67
- Item 20: cited PDF p. 70
- Agreement term (Item 17): cited PDF p. 54
Page references for Red Robin use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued April 29, 2026).
- November 2, 2026: Independently checked against the April 29, 2026 Minnesota FDD: cover, Items 1, 5, 6, 7, 11, 17, 19 and 20. Item 6 now lists all 21 rows (the draft had 4), and the advertising fees, which the franchisor sets up to a combined cap, are recorded in a model note instead of a flat brand-fund rate. Added the unpriced real estate and liquor license lines, the opening time, the no-renewal term and source notes. Cleared the source-review hold. Rewrote the analysis.