About Radisson® Franchise
Radisson is a hotel franchise offering the right to operate a full-service hotel providing lodging services to the public under the Radisson brand name.
Franchisees operate hotels in three classes — Resort, Suite, and Hotel — each targeting slightly different segments of travelers.
The hotels offer guest rooms, may include an RBG restaurant (a vibrant bar and grill concept featuring an all-day menu), meeting facilities, and other amenities typical of upper-midscale to upscale hotels.
Radisson® Franchise Cost & Fees
Minimum Investment
$10.0M
Average Investment
$31.1M
Maximum Investment
$52.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 or $500 per guestroom (whichever is greater) | One-time payment upon signing |
| Royalty Fee | 5% of Total Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Total Rooms Revenue | National brand fund |
| Total Investment Range | $9,975,890 – $52,293,335 | Includes build-out, inventory, working capital |
The investment range of $10.0M–$52.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Total Rooms Revenue) and marketing fee (2% of Total Rooms Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial License Fee | $75,000 | $100,000 |
| Product Improvement Plan | $0 | $3,000 |
| Construction Commencement/Renovation/Opening Date Extension Fee | $0 | $2,000 |
| Real Estate | $0 | $0 |
| Improvements | $5,625,000 | $37,500,000 |
| Design & Engineering Costs | $500,000 | $1,250,000 |
| Furniture, Fixtures & Equipment | $1,125,000 | $7,500,000 |
| Interior Design Review Fee | $0 | $3,000 |
| Architectural Plan Review Fee | $0 | $3,000 |
| Technical Services Fees | $0 | $300,000 |
| Exterior Signage | $50,000 | $200,000 |
| RBG Signs | $15,000 | $35,000 |
| Miscellaneous Pre-Opening Costs | $1,200,000 | $1,500,000 |
| Opening Inventory | $300,000 | $2,000,000 |
| ORACLE Opera PMS Initial Investment | $41,000 | $43,000 |
| Training Registration Fees and Expenses | $5,000 | $13,000 |
| WebExtra Fee | $150 | $1,400 |
| Start-Up Supplies | $10,000 | $12,000 |
| Salesforce Community Fees | $440 | $440 |
| IDeaS Fees | $4,300 | $5,495 |
| Additional Funds (3 Months) | $1,000,000 | $1,800,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Amount of then-current Initial Fee or if transferring to an affiliate, greater of $5,000 or then-current administrative fee |
| Renewal Fee | None |
| Technology Fee | ORACLE Opera Cloud PMS Fee: $11-$12 per guestroom per month; Technology & Interface Connect Fee: $5.95 per guestroom per month (max 100); Technology & Interface Support Fee: $1.70 per guestroom per month (over 100, max 250); PMS Payment Gateway License & Support Fee: $160-$170 per month |
| Audit Fee | Cost of audit if underpayment is willful or exceeds 3% |
| Reservation Fee | 2% of Total Rooms Revenue plus $3.75 per delivered reservation |
| Revenue Optimization Program Fee | $7.25 per guestroom per month (max 500 rooms) |
| Brand Business Conference and Regional Meetings | $3,990 |
| Administrative Fee | $500-$5,000 per document |
| Inspection Fees | Up to $2,500 plus travel expenses |
| Guest Service Intervention | $125-$200 per complaint/response |
| Radisson Rewards Americas | 5% of Total Rooms Revenue from Member Stay |
| Information Security/Payment Card Industry Support Fee | $250 per year |
| Redirected Call Program | $360 per year plus $2.00-$2.50 per call |
| Suspension Fee | $1,500 |
| Salesforce Communities Fees | $440 per year |
| CVent Private Label Technology Fee | $149 per year |
| WebExtra Annual Service Plan Fee | $1,258 |
| Additional Guestrooms | $500 per guestroom |
| Late Fees | 1.5% per month or up to $100 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program; multiple required programs |
| Classroom Training | 8-24 hours (New Hotel Orientation); 32 hours (Radisson Hotel Group Leadership Certification); 4-6 hours (Yes I Can Trainer Certification); plus various online programs |
| On-the-Job Training | N/A for most programs; online training components for ORACLE Opera PMS, Lanyon Transient, SalesForce Community, Medallia, Revenue Management System, and others |
| Training Location | Your Hotel (New Hotel Orientation, Living Responsible Business Training); Minneapolis, MN (Radisson Hotel Group Leadership Certification); Regional Location, Your Hotel or Minneapolis, MN (Yes I Can); Online and self-study (multiple programs) |
| Additional Training | Radisson Academy Online ($425/year); ongoing training may be offered via seminar, webinar, or electronic means; additional training at $1,200 plus travel expenses per representative |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive with possible Protected Area |
| Exclusive Territory | No |
| Territory Size | Negotiated radius surrounding the Hotel (if Protected Area is granted) |
| Description | Franchise is limited to the Licensed Location only with no rights to any exclusive area or protected territory. However, in certain circumstances, Radisson may agree not to operate or license another Radisson hotel within a negotiated radius (Protected Area). Even with a Protected Area, Radisson retains extensive rights including using trademarks anywhere, operating hotels under other Radisson-affiliated brands in the area, and using alternative distribution channels including the Internet. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | None |
| Renewal Fee | None |
| Renewal Conditions | No renewal or extension provisions in the License Agreement |
| Transfer Fee | Amount of then-current Initial License Fee or if transferring to an affiliate, greater of $5,000 or then-current administrative fee |
| Transfer Conditions | Franchisor must approve all transfers. Transferee must apply and sign current license agreement, comply with training requirements, complete renovation, pay Product Improvement Plan fee, pay all obligations in full, sign termination agreement and release, and pay Transfer Fee. |
| Termination for Cause | Franchisor may terminate if franchisee defaults. Curable defaults: 10 days for monetary defaults, 30 days for other defaults (except 48 hours for defaults materially impairing goodwill). Non-curable defaults include insolvency, unsatisfied liens, judgments, foreclosure, failure to operate, felony conviction, 3 material defaults in 36-month period, underreporting revenue, material misrepresentations. |
| Non-Compete Period | None |
| Non-Compete Details | No non-competition covenants during or after the term of the franchise |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Owner is not required to personally supervise the Hotel on premises. If an individual, the franchisee or a professional management company approved by Radisson must directly supervise the Hotel. If a legal entity, a professional management company approved by Radisson must directly supervise the Hotel on its premises. The General Manager must meet minimum criteria including hospitality degree, CHA certification, or passing the CHA exam. |
| Required Suppliers | Must purchase Start-Up Supplies, Salesforce Community platform licenses, reservation services, ORACLE Opera PMS software, certain OS&E items, linen and terry items, iconic and logo'd items, uniforms, furniture, fixtures and interior finishes from designated or approved suppliers only. Signage must be from designated vendor. |
| Supply Restrictions | 75-90% of initial purchases must meet franchisor specifications. After opening, approximately 15-25% of annual purchases must meet specifications. Must use one of standard interior design packages unless exception granted. |
| Franchisor Revenue from Suppliers | In the 12 months ended December 31, 2020, total revenues were $50,126,150, of which approximately $20,075,099 (40.0%) was derived from sale of required products and services to franchisees. Affiliates received approximately $12,239,522 from sale of required products and services. Vendor payments range from 1% to 7% of sales plus fixed amounts from $1,000 to $42,500. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | In select markets, Radisson or an affiliate may offer financing through two programs: (1) Key Money Loan Program — for new License Agreement signings, generally $3,000 to $6,500 per rentable guestroom, no interest charged, payable in equal yearly installments over the license term; (2) Renovation Financing Program — for significant renovation of existing Radisson Hotels, generally up to $10,000 per rentable guestroom, interest rate generally not exceeding 4.5%, payable on 5-year anniversary. SBA loan processing also available through SBA Franchise Directory. |
Radisson® Franchise Earnings — Item 19
Radisson® does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Radisson® does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Radisson® Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Radisson® System Growth
Total Units
71
Franchised
65
Company-Owned
6
Radisson® currently operates 65 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 4 | 16 | 72 |
| 2019 | 9 | 9 | 71 |
| 2020 | 2 | 6 | 65 |
Transfers: 1 | Closures: 6
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Radisson® Franchise — FAQ
The total investment to open a Radisson® franchise ranges from $9,975,890 to $52,293,335, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000 or $500 per guestroom (whichever is greater). The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Radisson® charges a royalty fee of 5% of Total Rooms Revenue of gross sales, plus a 2% of Total Rooms Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Radisson® Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Radisson® to ensure you have the most up-to-date version.
Radisson® does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Radisson® has been franchising since 1983. The FDD shows an investment range of $9,975,890-$52,293,335, a 5% of Total Rooms Revenue royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $75,000 or $500 per guestroom (whichever is greater) and the total investment ranges from $9,975,890 to $52,293,335 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Radisson® and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Radisson® or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com