Red Hot & Blue franchise
2023 filing · April 30, 2023
Red Hot & Blue at a glance
A barbecue restaurant serving smoked barbecue, ribs and Southern-style food to the music of the American South.
The business
- Franchisor
- RHB Franchising, LLC
- The company that sells the franchises
What you pay
- Cost to open
- $994K–$1.97M
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of weekly gross sales plus 9% of catering and special-order sales, and up to 4% to the marketing development fund
- Agreement length
- 20 years
Where it is
- Franchised, 2022
- 10
- As printed in the filing
From RHB Franchising, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Red Hot & Blue among all franchises with the same figure.
| Figure | Red Hot & Blue | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,480,550 | Costs more than 89% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
How much a Red Hot & Blue franchise costs
Opening one Red Hot & Blue costs an estimated $994,100 to $1,967,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are building, landscaping and improvements ($450,000 to $750,000) and furniture, fixtures, supplies, Décor and equipment ($215,000 to $300,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Fee | $35,000 | ||
| Building, Landscaping and Improvements | $450,000 | $750,000 | |
| Wages, Travel and Living Expenses for You and Your Management Staff During Training | $25,000 | $60,000 | |
| Furniture, Fixtures, Supplies, Décor and Equipment | $215,000 | $300,000 | |
| Architectural, Engineering and Impact Fees | $30,000 | $115,000 | |
| Signage and Awning Package | $45,000 | $60,000 | |
| Point-of-Sale and Computer Systems | $19,000 | $42,000 | |
| Liquor License Costs | $100 | $300,000 | |
| Employee Salaries - 3 Months | $100,000 | $125,000 | |
| Miscellaneous | $10,000 | $50,000 | |
| Grand Opening | $15,000 | $30,000 | |
| Additional Funds - 3 Months | $50,000 | $100,000 | |
| Total | $994,100 | $1,967,000 | |
Source: RHB Franchising, LLC, 2023 filing, page 12
Red Hot & Blue franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: RHB Franchising, LLC, 2023 filing, page 9
Royalty and ongoing fees
| Royalty | 5% of weekly gross sales plus 9% of catering and special-order sales, and up to 4% to the marketing development fund. |
|---|---|
| Transfer Fee | $5,000 |
| Local Advertising | Up to 3% of Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: RHB Franchising, LLC, 2023 filing, page 9
Other fees as filed, from page 10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Red Hot & Blue does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: RHB Franchising, LLC, 2023 filing, page 35
SBA loans to Red Hot & Blue franchisees
Lenders approved 8 SBA 7(a) loans for Red Hot & Blue franchisees from 1994 to 2020, $3.11M in all. All 8 have ended: 7 were paid in full and 1 was charged off.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Red Hot & Blue compares
Of the 813 restaurant franchises on this site, Red Hot & Blue is the 672nd cheapest to open.
| Figure | Red Hot & Blue | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $994K | $408K | $222K |
| Cost to open, high end | $1.97M | $866K | $477K |
| Franchise fee | $35K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2020 | 10 (+2) | 0 |
| 2021 | 10 (0) | 0 |
| 2022 | 10 (0) | 1 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
These figures don't add up as printed: the 2022 counts come to 11, but the filing shows 5. Worth asking the franchisor.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: RHB Franchising, LLC, 2023 filing, page 36
Who owns Red Hot & Blue?
Red Hot & Blue franchises are sold by RHB Franchising, LLC.
From RHB Franchising, LLC’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: RHB Franchising, LLC, 2023 filing, litigation on page 8, bankruptcy on page 8
Red Hot & Blue filings
The figures on this page come from RHB Franchising, LLC’s 2023 filing, issued April 30, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 30, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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