Red Mango Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$106,500 - $556,500
Franchise Fee
$7,500
Min Cash Required
$5,000
Total US Locations
45
Business Summary
Red Mango FC, LLC franchises retail stores operating under the trade names RED MANGO®, RED MANGO CAFÉ® and/or RED MANGO CAFÉ & JUICE BAR™. These stores primarily offer authentic frozen yogurt and treats, various yogurt and non-yogurt based smoothie beverages, fruit-based smoothie beverages, fresh-squeezed fruit and vegetable juices, health foods, café items such as wraps, salads, soups, and flatbreads, along with related products and services for both dine-in consumption and take-out service.
Corporate History
Red Mango FC, LLC was originally established on August 3, 2006, as Red Mango Franchising Company, a California corporation. In July 2010, the company converted to a Texas limited liability company and changed its name to Red Mango FC, LLC. Red Mango FC, LLC has been offering franchises since July 2007. It is a wholly-owned subsidiary of Red Mango, LLC (formerly Red Mango, Inc.), which acquired the exclusive license to the RED MANGO trademarks and other intellectual property from Relay International Co., Ltd, a South Korean company, in July 2006, and later gained full rights in July 2008. Red Mango FC, LLC has several affiliates that franchise other concepts, including Smoothie Factory, Souper Salad, Orange Leaf, Humble Donut Co., Friendly's Restaurants, and Clean Juice.
Financial Overview
Investment Range
$106,500 - $556,500
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$30,000
Minimum Cash Required
$5,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$254,000
Equipment Costs (High)
$454,000
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Red Mango FC, LLC's financial statements reflect a 'Member's deficit' of $(24,704) as of December 29, 2024, and $(150,045) as of December 31, 2023, indicating accumulated losses. However, the Independent Auditor's Report for the fiscal year ending December 29, 2024, notes positive earnings and positive cash flows from operations, leading management to conclude there is no significant doubt about the company's ability to continue as a going concern. Despite this, the FDD's Special Risks section highlights that Red Mango FC, LLC's financial condition 'calls into question' its ability to provide services to franchisees.
Financing Details
Red Mango FC, LLC does not offer any direct or indirect financing to franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
45
Franchised Units
45
Corporate Units
0
Avg Square Footage
800
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Red Mango FC, LLC has no litigation history to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Red Mango FC, LLC has no bankruptcy history to report, as no bankruptcy is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Red Mango FC, LLC franchisees must notify Red Mango FC, LLC of their intent to renew between 12 and 24 months before the current term expires. They must be in good standing, without any material defaults, and current on all financial and non-financial obligations to Red Mango FC, LLC, its affiliates, and third-party suppliers. Franchisees must also have the right to remain in their current store location or secure an approved substitute premise. As part of the renewal process, they are required to pay a renewal fee, sign Red Mango FC, LLC's then-current Franchise Agreement (which may have materially different terms and fees), renovate their store to meet current brand standards, submit a walkthrough video of their store, and comply with current franchisee qualifications and training requirements. Additionally, the franchisee and each of their owners must sign a general release of all claims against Red Mango FC, LLC and its affiliates.
Training & Support Program
Franchisor Assistance
Red Mango FC, LLC provides comprehensive support to its franchisees. Before a store opens, Red Mango FC, LLC assists with site approval, provides initial training for two individuals, offers three days of on-site store opening assistance for the first store (additional days incur a fee), loans the operations manual, provides pre-opening consultation on development, layout, suppliers, and purchasing, and gives a construction checklist. After the store opens, Red Mango FC, LLC offers ongoing consultation regarding new product development, store operations and management, advertising, marketing, and financial advice. This ongoing support can be delivered through store visits, meetings, seminars, conferences, and electronic or printed materials. Red Mango FC, LLC also communicates information about designated suppliers and administers the Brand Development Fund. Franchisees are required to use Red Mango FC, LLC's approved loyalty/online ordering platform, Lunchbox, and adhere to social media guidelines. Red Mango FC, LLC may also establish and maintain an intranet or extranet system for communication and updates, and designate a customer feedback tool.
Initial Training Hours
48
Training Location
Corporate office in Dallas, TX, and a designated training store selected by Red Mango FC, LLC
Ongoing Support
Red Mango FC, LLC provides its franchisees with ongoing consultation and advice, which includes information on new product development, instruction on store operations and management, advertising and marketing strategies, and financial and accounting guidance. This support is delivered through various channels like store visits by Red Mango FC, LLC personnel, meetings, seminars, conferences, and the dissemination of electronic or printed materials. Red Mango FC, LLC also keeps franchisees informed about Designated Suppliers and Distributors and administers the Brand Development Fund. Franchisees must participate in the Club Mango® loyalty program, mobile app, and online ordering system provided by the Lunchbox platform. Red Mango FC, LLC may also establish an intranet or extranet system for communication within the franchise network and requires the use of an approved customer feedback tool.
Franchise Requirements
Ideal Candidate Profile
Red Mango FC, LLC seeks franchisees who are committed to actively managing their business. The ideal candidate will serve as a Managing Owner, or appoint a Key Person, and must devote full-time efforts to the store's management and operation. All Managing Owners and Key Persons must successfully complete Red Mango FC, LLC's initial training program to its satisfaction.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Red Mango FC, LLC establishes a Protected Area for Traditional Stores, which is mutually agreed upon with the franchisee and identified in Attachment B of the Franchise Agreement. This area is typically defined by a radius surrounding the store or a specific geographic area identified on a map. The minimum Protected Area may be as small as an office or retail building in densely populated urban areas, and is likely to be larger in suburban, less populated areas. However, stores located in malls do not receive a Protected Area. This Protected Area excludes "Closed Markets" such as department stores, shopping malls, airports, college campuses, and other captive environments where Red Mango FC, LLC reserves the right to operate or license other stores. Furthermore, Red Mango FC, LLC states that third-party delivery service providers determine their own delivery zones, which may overlap with a franchisee's Protected Area or another store's delivery zone, and this is not considered a breach of territory rights.
Staffing Notes
Red Mango FC, LLC requires the Franchised Business to be supervised on-premises by a Managing Owner, who must successfully complete initial training and dedicate full-time efforts to management and operation. If the Managing Owner does not devote full-time efforts, or if there are multiple stores, a Key Person must be appointed. This Key Person must also complete training, be approved by Red Mango FC, LLC, and commit full-time to store operations and management. Franchisees must maintain a competent, conscientious, and trained staff in sufficient numbers to serve customers, ensuring at least a manager or shift leader is on duty at all times the store is open, including during opening and closing procedures. All employees are required to wear designated uniforms and maintain a neat appearance. Franchisees are solely responsible for all labor and employment matters, including hiring, wages, benefits, hours, discipline, and discharge of their employees.