The Red Collection

The Red Collection

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$247K
Total: $247K–$2M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$35K
Per current disclosure
Royalty
4.5%
of gross revenue
Locations
5
Franchising since 2018

Description

What is The Red Collection?

The Red Collection represents a fresh and dynamic approach to upscale hospitality, offering a distinctive blend of modern luxury and personalized service in the boutique hotel sector. Launched in 2018, this emerging hospitality brand has quickly established itself as an innovative player in the lodging industry, with a carefully curated portfolio of properties that each tell their own unique story.

What sets The Red Collection apart is its commitment to creating authentic, locally-inspired experiences that resonate with both business and leisure travelers. Each property within the collection maintains its individual character while adhering to the brand's high standards of service excellence and guest satisfaction. The hotels are strategically positioned in prime urban locations, offering guests convenient access to business districts, cultural attractions, and entertainment venues.

The Red Collection's business model emphasizes sophisticated design elements, technology-forward amenities, and personalized guest experiences. Their properties feature thoughtfully designed spaces that combine contemporary aesthetics with practical functionality, appealing to modern travelers who seek both comfort and style. The brand's dedication to creating memorable stays is evident in their attention to detail, from curated local partnerships to signature guest services.

For potential franchisees, The Red Collection offers a unique opportunity to enter the boutique hotel market with a brand that's positioned for growth in the upper-midscale to upscale segments. The franchise system provides comprehensive support in areas such as operations, marketing, and revenue management, while allowing owners to maintain the distinctive character of their properties. This balance of standardized excellence and local authenticity makes The Red Collection an attractive option for entrepreneurs looking to establish themselves in the evolving hospitality industry.
  • Lower investment than traditional hotels
  • Early-stage territory selection opportunities
  • Boutique lodging market positioning
  • Flexible property conversion model
  • Emerging brand growth potential
  • Accessible hospitality franchise entry

Location Analysis

Where The Red Collection wins

The Red Collection, a relatively new entrant in the upscale lodging sector with a limited market presence, represents an emerging opportunity in the hospitality market. Despite selective geographical distribution, this boutique hotel concept shows potential for strategic expansion. The brand's modest footprint suggests a carefully controlled growth strategy typical of premium hospitality concepts, focusing on quality over rapid expansion.

While specific performance metrics and customer satisfaction data are not currently available, the hospitality sector typically favors locations in high-traffic urban centers, tourist destinations, and business hubs. Ideal locations for The Red Collection would likely include areas with strong corporate presence, cultural attractions, and robust tourism infrastructure.

Potential franchisees should focus on metropolitan markets with high disposable income, strong business travel segments, and established tourism ecosystems. Key success factors include proximity to airports, convention centers, and entertainment districts. The brand's current selective market presence suggests significant opportunity for first-mover advantage in many untapped markets.

Recommended location criteria include markets with average household incomes above $75,000, strong corporate presence, and year-round tourism appeal. Sites should offer visibility from major thoroughfares and maintain appropriate distance from competing upscale properties to ensure market differentiation.
Total US locations
5
Franchise units
5
Corporate locations
0
Avg. sq. footage
N/A
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Financial Analysis

The numbers behind The Red Collection

Avg gross revenueN/A
Investment range$246,875 – $1,552,600
Investment midpoint$899,738
Brand fund3%
Royalty4.5%
Franchise fee$35,000
Min. net worth
Min. liquid capital
The Red Collection requires an investment range of $246,875 to $1,552,600, positioning it as a remarkably accessible entry point in the lodging sector. This investment level sits significantly below the sub-sector averages of $8.4-$9.3 million, suggesting a boutique or limited-service hotel model rather than full-scale resort operations. The wide investment range likely reflects varying property sizes, locations, and renovation requirements for existing structures.

As a 2018-established franchise with only 5 units, The Red Collection represents an early-stage investment opportunity with limited operational history. This nascent system status presents both opportunity and risk - early franchisees may benefit from prime territory selection and close franchisor relationships, but lack extensive proven operational data and brand recognition that mature systems provide.

The lodging industry has shown resilience post-pandemic, with boutique and unique accommodation concepts gaining traction among travelers seeking distinctive experiences. However, the hospitality sector remains sensitive to economic cycles, travel restrictions, and local market conditions.

Ideal investors should possess substantial hospitality experience and sufficient liquid capital to weather seasonal fluctuations typical in lodging operations. The lower investment threshold makes this accessible to experienced hotel operators seeking emerging brand opportunities or real estate investors with hospitality management capabilities.

Prospective franchisees must carefully evaluate the franchisor's support infrastructure, brand development strategy, and territory protection policies given the system's early development stage. Thorough due diligence through the FDD review and existing franchisee interviews is essential for assessing long-term viability.
Did you know? Did you know that starting a The Red Collection franchise - the luxury beauty and wellness brand known for its premium salon services and upscale spa experiences - requires a total investment ranging from $246,875 to $1,552,600, which includes the $35,000 franchise fee plus all the essential startup costs like equipment, buildout, inventory, and working capital needed to launch your high-end beauty destination?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$247K–$2M
Most common
$246,875
Minimum
$899,738
Midpoint
$1,552,600
Maximum

Per FDD Item 7, total initial investment ranges from $246,875 to $1,552,600. The midpoint $899,738 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

-99% YoY
8006404803201600
2020
2021
2022
2023
2024
5 units open as of 2024 FDD-592 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for The Red Collection's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a The Red Collection franchise typically ranges between $246,875.00 and $1,552,600.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

The Red Collection
The Red Collection
N/A avg revenue · 5+ US franchises

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