Red Mango
Red Mango offers authentic frozen yogurt and smoothies in retail stores, known for healthful café items and juices; part of the quick-serve restaurant industry.
Red Mango franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening one Red Mango Traditional Store ranges from $323,000 to $556,500. For a Non-Traditional Store, it ranges from $191,500 to $365,000. Opening a Co-Branded with a Third-Party Concept store requires an investment of between $106,500 and $232,500. Each type of store includes a $20,000 fee paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of store. For Traditional Stores, it is $30,000 (with a possible military veteran's discount), while for RED MANGO Store Co-Branded with a Third-Party Concept, it is $15,000 (also with potential military veteran's discount). This isn't specified in the excerpts for other types of stores. [p.11, p.12]
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are not specified in detail within these excerpts. The franchise agreement may include different terms for these fees, as indicated on [p.142] and [p.91], which can be materially different from those in the current agreement and may vary between transferees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement generally provides for a 10-year initial term for traditional stores and a 5-year initial term for non-traditional stores, with the option to renew for two additional 5-year terms [p.184]. Subject to the company's approval, you may renew the franchise agreement upon its expiration [p.184].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to comply with any lawful provision of the Franchise Agreement and do not cure such failure within a reasonable period, which cannot exceed 30 days [p.5]. Additionally, the franchisor may terminate the agreement on other grounds available by law as specified in the FDD [p.60].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a transferee, you must demonstrate sufficient equity capital to operate the Franchised Business [p.91]. Additionally, the franchisee must meet Mango's current educational, managerial, and business standards, have a good moral character, business reputation, and credit rating, and possess the aptitude and ability to operate the Franchised Business [p.12.4.2 and p.8.4.2]. The specific net worth or liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, owned stores, and other channels of distribution, as well as competitive brands controlled by the franchisor. [p.38] Additionally, your protected area can be affected by third-party delivery zones, which are not controlled by the franchisor. [p.37]
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that is held on an as-needed basis but no less than once per year, subject to certain conditions [p.34]. This training is directed by approved training personnel or contractors with experience in the Red Mango business, and currently, there are four Franchise Support Directors overseeing this process [p.34]. The franchisor also offers ongoing support services as part of its franchise agreement [p.184].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific information on the number of closed or terminated outlets for each franchise. It only lists the current number of franchised outlets as of December 29, 2024: 94 FRIENDLY'S restaurants, 61 ORANGE LEAF stores, 69 CLEAN JUICE stores, and 3 SOUPER SALAD restaurants. [p.181] provides data on the status and changes in franchised outlets but does not specify closures or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it [p.52]. However, they do not make any representations about future financial performance and do not authorize their employees or representatives to make such claims either orally or in writing [p.53]. Any other financial performance information received should be reported to the franchisor's management, the Federal Trade Commission, and appropriate state regulatory agencies if obtained from sources other than actual records of an existing store [p.53].
What am I restricted to selling, and where must I buy supplies?
You are restricted from operating a business that sells smoothies, frozen yogurt, fresh squeezed juices, and café items (including flatbreads, salads, soups, and sandwiches) for more than 20% of total sales on a weekly basis, except for a RED MANGO Store under a valid franchise agreement. You must purchase goods and services from the franchisor or designated suppliers as identified by Mango, including Proprietary Products, food products, beverages, uniforms, advertising materials, and other merchandise [p.3, p.77, p.25].