Red Lobster is an international seafood restaurant with tasty cuisine and top-of-the-range products carefully prepared to meet customers’ needs.
If you find this opportunity interesting, you might want to read along to learn about Red Lobster’s franchise offering.
At the moment, Red Lobster doesn’t offer franchise opportunities in specific locations like the United States.
While such information might be bad news for candidates in this area, there’s a chance Red Lobster might have openings for these locations in the future. You’ll have to keep your fingers crossed.
At the time of writing, the information contained here was accurate.
However, because Red Lobster reserves the sole right to change its franchise offering, you’ll have to check with the franchisor to ensure the information aligns with what’s provided here.
About Red Lobster
Bill Darden is credited with starting the Red Lobster concept.
The first restaurant was opened in 1968. From its humble beginnings in Lakeland, Florida, Red Lobster has since blossomed into a major restaurant chain with over 700 locations worldwide.
Due to its excellent services, the Red Lobster brand has won awards for quality food and services.
It has a rich menu with product categories like daily specials, holiday platters & feasts, create-your-own ultimate dinners, starters, beverages, signature feasts, and pasta.
More menu offerings include classics, bowls & sandwiches, soups & sides, kids, biscuits & extras, desserts, hot platters, cold platters, and family meal deals.
Red Lobster is currently focusing on selling its franchise around U.S. airports and international locations worldwide.
Such international locations include Ecuador, Greater China, Japan, Mexico, and Puerto Rico. To be more specific, targeted sites in Ecuador include Guayaquil, while that for greater China focuses on Beijing.
In Japan, targeted areas include Saitama, Chiba, Nagasaki, and Yamanashi.
More Japanese locations include Aichi, Kanagawa, Osaka, and Tokyo. Mexico City is targeted in Mexico, while Bayamon and San Juan are targeted in Puerto Rico.
Cost of Red Lobster Franchise
To establish your Red Lobster franchise unit, you’ll need to determine the ownership costs. You can join this low-cost investment with a franchise fee of $9,500.
The total investment starts from $9,500. It’s important to state that the cost details for buying a Red Lobster franchise are sketchy.
This could be due to various reasons, including varying regional requirements. For a better idea of what applies to your situation, you’ll need to contact the franchisor for detailed costs.
Also, Red Lobster provides you with a franchise disclosure document (FFD) during the franchise application process.
This document holds every little bit of information you’ll ever need to know about Red Lobster’s franchise offering. So, proceeding with the application is the best way to figure out what it takes to own a Red Lobster.
With that said, let’s move to other requirements you need to know of.
Does Red Lobster Offer Financing?
One of the primary areas of interest for many franchise candidates is financing. While that is true, not all franchise programs provide funding.
Some make in-house financing arrangements, while others maintain relationships with third-party sources who offer such financing.
In Red Lobster’s case, it’s silent on such provisions. This doesn’t translate to the franchisor not offering to finance, nor does it confirm such.
To learn about that, you’ll have to refer to Red Lobster’s franchise disclosure document, as it holds all the information you’ll ever need to join its ranks.
Red Lobster Franchise Ownership Process
When taking concrete steps to join this franchise program, you’ll need to visit its franchise application page, where a form is available.
Red Lobster’s franchise development team can assess your readiness for its offering through this form.
In other words, the franchisor determines whether you’re eligible to own its franchise. You’re given a call for further discussions when found to be eligible.
This is where both parties (you and the franchisor) get to know each other.
On the part of the franchisee, many questions are asked about the franchise offering. The franchise development team provides all the answers while guiding you around the basic operations of the business.
This information is essential because it helps determine if the investment suits your needs.
The Franchise Disclosure Document
So far, several mentions have been made about Red Lobster’s franchise disclosure document.
This is a legal document that holds valuable information about the franchise. You’ll need legal assistance fully understand the implications of the franchise offer.
You’ll have to go through the FDD for your franchise application to progress. Red Lobster issues this. So, what are the contents of the FDD?
The main sections cover business experience, litigation, bankruptcy, initial fees, other fees, estimated initial investment, and restrictions on sources of products & services.
Other sections of Red Lobsters FDD include information on the franchisee’s obligations, financing, franchisor’s assistance, advertising, computer systems, and training.
More contents include territory, trademarks, patents, copyrights, proprietary information, and obligation to participate in the actual operation of the franchise business.
Other Sections of the FDD
Still, on the FDD, you’ll find other sections like restrictions on what the franchisee may sell, renewal, termination, transfer, & dispute resolution, and public figures.
You also have financial performance representations, outlets & franchisee information, financial statements, contracts, and receipts.
Support and Training
Every franchise candidate that completes the franchise ownership process and signs Red Lobster’s franchise agreement is taken through an intensive training process.
Such training seeks to equip new franchisees with the skills and knowledge required to run their operations effectively.
Like the training, initial and ongoing support is offered to new and existing franchisees.
Areas covered include toll-free line, newsletter, grand opening, meetings & conventions, security & safety procedures, lease negotiation, field operations, site selection, and use of its proprietary software.
More areas of support include access to its franchisee intranet platform, regional advertising, national media advertising, cooperative advertising, and ad templates.
Others include social media marketing, SEO, email marketing, and website development.
With the information above, your desire to own a Red Lobster should be more attainable. While that is true, much research is needed on your part. First, visit its franchise page to learn more about its offering before proceeding.
Again, it’s essential to emphasize the importance of the FDD document as it holds everything you need to know.