About The Red Bird Franchise
The Red Bird is a hot chicken restaurant franchise serving a distinctive menu of hot chicken, tenders, sandwiches, bowls, fries, home cooked sides, sauces, and desserts.
Newly franchising in 2025, the brand operates from in line retail units with an emphasis on end cap destination retail, though standalone and carry out only locations are also available.
The initial franchise fee is $65,000.
The Red Bird Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3.0% of Gross Sales | National brand fund |
| Total Investment Range | $289,500 – $1,157,875 | Includes build-out, inventory, working capital |
The investment range of $290K–$1.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (3.0% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $65,000 | $65,000 |
| Lease/rent | $10,000 | $71,875 |
| Construction (includes permits) | $60,000 | $460,000 |
| Equipment | $35,000 | $150,000 |
| POS System | $2,500 | $5,000 |
| Signage | $10,000 | $35,000 |
| Opening Advertising | $25,000 | $100,000 |
| Inventory and Start-up Supplies | $12,500 | $22,500 |
| Insurance | $1,000 | $5,000 |
| Training Expenses | $10,000 | $30,000 |
| Business Licenses | $1,000 | $3,500 |
| Architect and Professional Fees | $5,000 | $20,000 |
| Additional Funds (3 Months) | $50,000 | $150,000 |
| Security / Utility Deposits | $2,500 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 or 10% of our then-current initial franchise fee, whichever is more. |
| Technology Fee | Currently none, but may be up to 5% of Gross Sales |
| Audit Fee | Will vary under circumstances |
| Grand Opening Marketing | Minimum $25,000 |
| Late Fee on Overdue Payments | $100 late fee per month |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Securities Offering Fee | $5,000 or our actual expenses, whichever is greater |
| Replacement training | Discounted to $2,500 for each additional or replacement personnel to be trained |
| Insurance | Will vary under circumstances |
| Supplier Inspection Fee | Will vary under circumstances |
| Convention and Meeting Fee | $1,000 to $2,500 per person |
| Additional On-site evaluation | $5,000, plus our expenses |
| Relocation costs | 25% of our then-current franchise fee, plus our out-of-pocket costs |
| Lost Future Royalties | Average of monthly Royalty Fees for previous 24 months, multiplied by lesser of 24 or remaining months |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | One-week period (3 days classroom, 3 days on-the-job) |
| Classroom Training | 20 hours |
| On-the-Job Training | 25 hours |
| Training Location | Vienna, Virginia or other designated Certified Training Location |
| Additional Training | Specially Trained Management Personnel may be required to attend refresher courses, seminars, and other training programs periodically. Replacement personnel must attend initial training program. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Two miles radius in suburban markets; one mile radius in urban locations |
| Description | The Protected Territory will typically be a circle with a radius of two miles in suburban markets, with its center at the front door of the Shop. For an urban location, the Protected Area will be a circle with a radius of one (1) mile. The actual Protected Territory may be defined differently based on the desired location’s characteristics. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional 10-year term |
| Renewal Fee | $5,000 or 10% of our then-current initial franchise fee, whichever is more. |
| Renewal Conditions | Written notice, remodel/refurbish premises to current standards, upgrade computer hardware/software, satisfy monetary obligations, not be in default, sign release, pay fee, comply with current qualification/training, and sign current form of Franchise Agreement. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transferor must execute a general release, transferee must meet franchisor's standards (educational, managerial, business, moral character, credit rating, financial resources), sign current franchise agreement, conduct Major Remodeling if requested, pay all monetary obligations, and transferor remains liable for pre-transfer obligations. |
| Termination for Cause | Automatic termination for insolvency, assignment for benefit of creditors, receivership, material final judgment unsatisfied, dissolution, execution levied, lien/mortgage foreclosure. Termination with notice for failure to obtain/open business within specified time, abandonment, loss of premises, felony conviction, public health/safety threat, unauthorized transfer, disclosure of confidential information, false books/records, three or more defaults in 52 weeks, continued purchase from unapproved suppliers, or fraudulent/unethical conduct. |
| Non-Compete Period | During the term of the agreement and for a continuous period of two (2) years after expiration or termination. |
| Non-Compete Details | Prohibition on engaging in a "Competitive Business" (foodservice business specializing in chicken for more than 25% of offerings/revenue) during the term. Post-termination, the restriction applies within the Protected Territory, within five miles of the Protected Territory, and within five miles of any other "The Red Bird" Shops operating under the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you and your General Managers (who will assume primary responsibility for the franchise operations and who we have previously approved in writing) must devote full time, energy, and best efforts to the management and operation of the Franchised Business. The Operating Owner must own at least a 25% interest in the franchisee entity. |
| Required Suppliers | Franchisees must buy all Products, equipment, ingredients, supplies, materials, and other products from franchisor-approved suppliers. Franchisor is the only designated supplier for certain items (signs, sauce, seasoning, batter mix, uniforms). |
| Supply Restrictions | Franchisees must sell only approved products/services, use specified equipment/items/techniques, not deviate from standards, and stop using disapproved products. Franchisor can designate a single supplier for certain items. Franchisees must seek approval for new suppliers, which may involve inspection fees ($1,500-$2,000). |
| Franchisor Revenue from Suppliers | Franchisor has the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits ("Allowances") from suppliers based on franchisee purchases. During the last fiscal year, no Allowances were collected. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any agent or affiliate offers direct or indirect financing to you, guarantees any note, lease or obligation of yours, or has any practice or intent to sell, assign or discount to a third party all or part of any financing arrangement of yours. |
The Red Bird Franchise Earnings — Item 19
The Red Bird 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.
The Red Bird Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Red Bird System Growth
The Red Bird currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 1 | 0 | 1 |
| 2024 | 2 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Hussein Sbeitan, CPA, Aelia CPA Group PLLC for year ending December 31st.
The Red Bird Franchise — FAQ
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