Start a Radisson Red Franchise in 2025

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $7.1M - $32.8M

Units as of 2021: 10 66.7% over 3 years

When traveling for business or pleasure, guests are always seeking thrilling and unforgettable experiences. Radisson Red attempts to transform the hotel experience into a brand with stand-out service at every destination.

Founded in 2014 by Carlson Rezidor, Radisson Red set off to put a playful twist to the hotel guest's experience. As a hotel brand, Radisson Red aims to become the buzzing heart of every destination, promising 'Instagrammable' adventures with every visit.

Radisson Red is looking to add franchisees in both the United States and abroad. Canada, Central, America, Mexico, and South America may be solid places with which to open a Radisson Red franchise.

At Radisson Red, 'Yes I Can!' is not just a motto they follow with judicial efficiency, but a target that challenges them to deliver the most exemplary service to every guest.

Why You May Want To Start a Radisson Red Franchise

If you are looking to spread your wings in the hospitality services industry, opening a Radisson Red franchise could be an excellent opportunity for you. Franchisees at Radisson Red should have a spirit of adventure, entrepreneurship, and a keen eye for new opportunities.

Radisson Red follows the "Red Way," a philosophy that emphasizes that the 'ordinary' should always pave the way for the 'different.' To match up with changing market needs, Radisson Red seeks franchisees with excellent customer service skills who can effectively connect with customers.

What Might Make a Radisson Red Franchise a Good Choice?

Radisson Red may be famous for its unique appeal as a place where the atmosphere is positive, upbeat, and relaxed. At Radisson Red, everything from the traditional hotel setup may have been uprooted and redesigned. Radisson Red franchisees may be responsible for creating pleasant and casual spaces with styles that reflect the local cultures of guest destinations.

Opening a Radisson Red may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry. The Radisson Red brand is ready to prepare franchisees with strategies to succeed in a crowded and competitive industry.

How To Open a Radisson Red Franchise

To be part of the Radisson Red team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees.

Before making any financial commitment or signing an agreement with Radisson Red, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Radisson Red franchising team questions.

If awarded a franchise, franchisees receive a great deal of support from the Radisson Red brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, research, and construction. They also receive hands-on training and continued support after their facilities have opened.

Company Overview

About Radisson Red

Industry	Lodging
Related Categories	Hotels & Motels
Founded	2014
Parent Company	Radisson Hotel Group, Americas
Leadership	Jim Alderman, CEO
Corporate Address	701 Carlson Pkwy., #300, MS 4001 Minnetonka, MN 55305
Social	Facebook, Twitter, LinkedIn, Instagram

Business Overview

Franchising Since	2014 (11 years)
# of employees at HQ	700
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Central America, Canada, South America, Mexico
# of Units	10 (as of 2021)

Information for Franchisees

Here's what you need to know if you're interested in opening a Radisson Red franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$75,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$7,061,890 - $32,804,335
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	20 years
Is franchise term renewable?	No

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	50 hours
Classroom Training	50 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No