RedKnight franchise
2023 filing · February 14, 2023Shares sales figures
RedKnight at a glance
A marketing agency for businesses offering website and graphic design, social media management and search engine optimization. At the end of 2022 there were 1 RedKnight locations in the US, all company-owned.
The business
- Industry
- Business services
- Franchisor
- RedKnight Franchise, LLC
- The company that sells the franchises
- Franchising since
- 2014
- 9 years of selling franchises
- Franchisor based in
- Colmar, Pennsylvania
What you pay
- Cost to open
- $28K–$46K
- Fee, build-out and opening working capital
- Franchise fee
- $19,900
- Paid once, when you sign
- Royalty
- 4% + minimum
- The greater of 4% of gross revenues or $125 per half-month, paid twice a month, with no minimum for the first 90 days
- Brand fund
- 2%
- 2% of gross revenue, paid with the royalty; it can rise to 3%
- Renewal fee
- See terms
- 40% of the then-current initial franchise fee.
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2020–2022
- States
- 1
- Most in Pennsylvania
From RedKnight Franchise, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
RedKnight among all franchises with the same figure.
| Figure | RedKnight | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $36,775 | Costs less than 98% of franchises |
| Franchise feePaid once, when you sign | $19,900 | Lower than 91% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4% | Lower than 93% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a RedKnight franchise costs
Opening one RedKnight costs an estimated $27,900 to $45,650. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the franchises under $30K.
The biggest costs are initial franchise fee ($19,900) and additional funds – 3 months ($2,000 to $8,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $19,900 | ||
| Rent, Equipment and Furniture | $0 | $1,500 | |
| Computer, Software and Point of Sales System | $2,000 | $4,150 | |
| Insurance Deposits and Premiums | $1,000 | $3,000 | |
| Pre-opening Travel Expense | $1,000 | $3,100 | |
| Professional Fees | $1,000 | $2,000 | |
| Membership for Referral-Based Group | $1,000 | $3,000 | |
| Business Permits and Licenses | $0 | $1,000 | |
| Additional funds – 3 Months | $2,000 | $8,000 | |
| Total | $27,900 | $45,650 | |
Source: RedKnight Franchise, LLC, 2023 filing, page 11
RedKnight franchise fee
The franchise fee is $19,900. You pay it when you sign the franchise agreement.
Source: RedKnight Franchise, LLC, 2023 filing, page 8
Royalty and ongoing fees
| Royalty | The greater of 4% of gross revenues or $125 per half-month, paid twice a month, with no minimum for the first 90 days. |
|---|---|
| Brand or marketing fund | 2% of gross revenue, paid with the royalty; it can rise to 3%. |
| Computer, Software and Point of Sales System | $2,000 |
| Renewal Fee | 40% of the then-current initial franchise fee. |
| Additional Training Fee | $500 per day per person, plus expenses. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: RedKnight Franchise, LLC, 2023 filing, pages 8 and 9
Other fees as filed, from pages 9–11. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures RedKnight publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: RedKnight Franchise, LLC, 2023 filing, page 28
How RedKnight compares
Of the 324 business services franchises on this site, RedKnight is the 36th cheapest to open and the 274th largest by number of locations.
| Figure | RedKnight | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $28K | $77K | $222K |
| Cost to open, high end | $46K | $136K | $477K |
| Franchise fee | $20K | $45K | $40K |
| Royalty | 4% | 7% | 6% |
| Brand fund | 2% | 2% | 2% |
| US locations | 1 | 32 | 21 |
| Shares earnings figures | Yes | 187 of 324 | 2,147 of 3,352 |
Typical is the median across the 324 brands in business services franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 1 | 0 | 0 |
| 2021 | 0 (0) | 1 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: RedKnight Franchise, LLC, 2023 filing, page 35
Where RedKnight locations are
At the end of 2022, RedKnight had locations in 1 state. The most are in Pennsylvania.
- Pennsylvania1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Pennsylvania | 0 | 1 | 1 |
Source: RedKnight Franchise, LLC, 2023 filing, page 36
Who owns RedKnight?
RedKnight franchises are sold by RedKnight Franchise, LLC.
From RedKnight Franchise, 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: RedKnight Franchise, LLC, 2023 filing, litigation on page 8, bankruptcy on page 8
RedKnight filings
The figures on this page come from RedKnight Franchise, LLC’s 2023 filing, issued February 14, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | February 14, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
