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The Red Collection franchise — is it worth it?

Travel & hospitality · FDD-based assessment · registered 2026

Medium risk Significant turnover

The Red Collection is a travel and hospitality brand with a relatively small current footprint of five outlets.

Everything below is free, read straight off The Red Collection's registered filing, with where the numbers land against travel & hospitality peers. Weighing The Red Collection against other options? Get a free shortlist of franchises that fit your budget.

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Total initial investment
$222,875 – $1,611,250
Below the travel & hospitality median · median $3,332,700
Initial franchise fee
—
FDD Item 5
Royalty
4.5%
FDD Item 6
Item 19 earnings
Not disclosed
no franchisor earnings
Litigation (Item 3)
Disclosed
in Item 3
Closure rate
20%
travel & hospitality median 4.1%
Outlet network
5 units
flat last year

Figures above are as disclosed in The Red Collection's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 640920 — check it yourself. See every other Wisconsin-registered franchise.

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The Red Collection franchise profit — what the FDD discloses

Plainly: The Red Collection 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 The Red Collection — any number quoted elsewhere is an estimate, not a disclosure. The absence is itself worth weighing (50% of travel & hospitality franchisors in our corpus do disclose); the fees, litigation and outlet churn The Red Collection's FDD does contain are on this page. For brands that put earnings on paper, see Hotel, travel & hospitality franchises with disclosed Item 19 earnings.

The Red Collection lawsuits & legal history (FDD Item 3)

The Red Collection's most recently filed Franchise Disclosure Document (2026) does disclose legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against The Red Collection itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. Item 3 of the source FDD describes each case.

The Red Collection closures & failure rate

Before you sign, The Red Collection 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 The Red Collection's most recent filing shows, and whether it's normal for a travel & hospitality 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. The Red Collection's latest tables show significant franchisee turnover. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 20%, against a travel & hospitality median of 4.1% — worse than the category. Net franchised outlets moved 0 to 5 in the latest reported year.

Who owns The Red Collection?

The Red Collection's franchise is offered by The Red Collection, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2026), and the entity a franchisee actually signs with. That name comes straight off the filing at WI DFI; it identifies the franchisor, not necessarily the ultimate parent company behind it.

Travel & hospitality franchises at a similar investment level

Anyone weighing The Red Collection 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.

Nautical Boat Club$396,700 – $697,000 · Item 19 disclosedMembership Hotel Organization$58,900 – $1,247,995Casago$23,000 – $1,287,000Affordable Suites of America$193,100 – $1,765,100 · Item 19 disclosedRestpoint Inn$211,875 – $1,986,445Cobblestone Hotel & Suites$94,999 – $2,351,007 · Item 19 disclosedCobblestone Inn & Suites$101,999 – $2,382,999 · Item 19 disclosedCobblestone Suites$101,999 – $2,382,999 · Item 19 disclosedTempo by Hilton$25,524,574 – $37,845,951Tapestry Collection by Hilton$2,861,047 – $70,253,147The Registry Collection Hotels, Registry Collection Hotelsinvestment not disclosedThompson Hotels®investment not disclosed

The Red Collection franchise — frequently asked

Who owns The Red Collection — who is the franchisor?

The Red Collection's most recently filed FDD (2026) names The Red Collection, LLC 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 The Red Collection franchise cost?

The Red Collection's most recently filed FDD (Item 7) puts the total estimated initial investment at $222,875 – $1,611,250 and a 4.5% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. Against travel & hospitality peers it sits in the upper quartile (median $3,332,700).

How much profit does a The Red Collection franchise make?

The Red Collection makes no Item 19 financial performance representation, so there is no franchisor-disclosed revenue or profit figure for The Red Collection at all — and profit would never be disclosed even where earnings are, because it depends on your rent, labor and how you operate. Any profit figure quoted elsewhere is an estimate, not a disclosure.

Does The Red Collection disclose financial performance (Item 19)?

No — The Red Collection's most recent FDD makes no Item 19 financial performance representation. Its absence is worth weighing: 50% of travel & hospitality franchisors in our corpus do disclose.

Are there lawsuits against The Red Collection?

The Red Collection's most recently filed FDD (2026) discloses legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against The Red Collection itself, and a disclosure is not a finding of wrongdoing.

Is The Red Collection a good franchise to buy?

Nobody can answer that from The Red Collection's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against travel & hospitality peers and against your own budget. Our read on this filing is medium risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.

Just watching The Red Collection?

Get a free email when something changes on The Red Collection or travel & hospitality: 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 state registries this page is built on.

This report compiles and structures publicly filed Franchise Disclosure Document (FDD) data from state franchise registrations. It is not legal, financial, or investment advice, is not affiliated with or endorsed by any franchisor, and does not replace reading the full FDD or consulting a franchise attorney or accountant. All figures are as disclosed by the franchisor in its most recent registered FDD. Item 19 financial performance representations are made at the franchisor’s option and may be absent or limited.