Franchise Facts Report → brands → Red Straw
Red Straw franchise — is it worth it?
Risk level — in the report
Red Straw Franchise, Inc.
Unlock what the free page above only hints at:
- Risk & red-flag breakdown — what the missing earnings, fees and churn imply.
- How it compares — every number ranked against food & beverage peers (median & quartile).
- Litigation detail — each case, franchisee vs. corporate, with summaries.
- Outlet churn & the questions to ask — behind the net change above: closures, terminations, transfers, and what to put to the franchisor.
Figures above are as disclosed in Red Straw's most recent FDD (registered 2024). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-31268. The risk level, the Item 19 figures, how it compares to peers, and the litigation & churn detail are in the full report.
Red Straw franchise profit — what the FDD discloses
Plainly: Red Straw does not disclose franchise profit or revenue. Its most recent FDD makes no Item 19 financial performance representation, so there is no franchisor-backed earnings figure for Red Straw — any number quoted elsewhere is an estimate, not a disclosure. The absence is itself worth weighing (many food & beverage franchisors do disclose), and the full report reads the risk signals Red Straw's FDD does contain — fees, litigation, and outlet churn — against peers. For brands that put earnings on paper, see Food & beverage franchises with disclosed Item 19 earnings.
Red Straw lawsuits & legal history (FDD Item 3)
Red Straw's most recently filed Franchise Disclosure Document (2024) discloses no litigation in Item 3. That is a real signal rather than a gap: the FTC Franchise Rule requires a franchisor to disclose material litigation involving itself, its predecessors, parents, affiliates and management, so an empty Item 3 in a current filing means there was nothing it was required to report. It is worth reading alongside the churn numbers — a system can have a clean Item 3 and still be losing franchisees, which is what Item 20 shows.
Red Straw closures & failure rate
Before you sign, Red Straw will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Red Straw's most recent filing shows, and whether it's normal for a food & beverage of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Red Straw's latest tables show a growing franchised network. The actual closure and termination counts, and how Red Straw's churn ranks against food & beverage peers, are in the full report.
The risk & red-flag breakdown, every figure ranked against food & beverage peers, litigation and churn detail — emailed as a PDF.
Who owns Red Straw?
Red Straw's franchise is offered by Red Straw Franchise, Inc. — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2024), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Food & beverage franchises at a similar investment level
Anyone weighing Red Straw is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Red Straw franchise — frequently asked
Who owns Red Straw — who is the franchisor?
Red Straw's most recently filed FDD (2024) names Red Straw Franchise, Inc. as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Red Straw franchise cost?
Red Straw's most recently filed FDD (Item 7) puts the total estimated initial investment at $277,000 – $493,000, with an initial franchise fee of $45,000 and a 5% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. The full report breaks down every fee line and benchmarks it against food & beverage peers.
How much profit does a Red Straw franchise make?
Red Straw makes no Item 19 financial performance representation, so there is no franchisor-disclosed revenue or profit figure for Red Straw at all — and profit would never be disclosed even where earnings are, because it depends on your rent, labour and how you operate. Any profit figure quoted elsewhere is an estimate, not a disclosure.
Does Red Straw disclose financial performance (Item 19)?
No — Red Straw's most recent FDD makes no Item 19 financial performance representation. Its absence is worth weighing; the report focuses on the verifiable risk signals instead.
Are there lawsuits against Red Straw?
No — Red Straw's most recently filed FDD (2024) discloses no litigation in Item 3. Franchisors must disclose material litigation involving themselves, their predecessors, parents, affiliates and management, so an empty Item 3 is a genuine signal rather than an omission.
Is Red Straw a good franchise to buy?
That comes down to how Red Straw's investment, earnings, litigation and franchisee churn stack up against food & beverage peers — which is exactly what the full report answers. For $99 you get the risk level and what's driving it, the actual Item 19 earnings (absent from this FDD), where every figure ranks against peers, and the specific questions to ask the franchisor before you sign.
Everything the sections above point to, in one place: Red Straw's risk level and what's driving it, what the missing Item 19 earnings imply, every figure ranked against food & beverage peers, and the litigation & churn detail — with the questions to put to the franchisor before you sign.
Get a free email when something changes on Red Straw or food & beverage: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same registries every report is built on.