Red Mango Frozen Yogurt with Toppings
Photo: Samat K Jian/Flickr via Creative Commons

In Brief:

      • Red Mango is a frozen yogurt and smoothie brand that has served healthy and delicious frozen treats worldwide since 2006.
      • The fruit, red mango, is a symbol of the company’s commitment to using only the best all-natural ingredients for our frozen yogurt, smoothies, and parfaits.
      • Red Mango is also known for being the first frozen yogurt store to be certified by the National Yogurt Association with the Live and Active Cultures seal, indicating the company’s use of real yogurt.
      • Franchisees choose to partner with Red Mango because they know their market, have a small retail footprint, support owners every step of the way, and offer international opportunities.

Financial Summary

    • Initial Franchise Fee: $30,000
    • Startup Costs: $302,000 – $463,000
    • Royalty Fee: 6.0%
    • Revenue Range: $21,998 – $717,487

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The Story Behind the Business

Red Mango is the pioneers behind the frozen yogurt fad that is sweeping the nation and the rest of the world. People can’t get enough of the delicious, and healthy, frozen treat. But what’s the deal with the name, Red Mango? The fruit is sometimes hard to find in stores, but it is the tastiest, ripest form of mango. The delicious and nutritious quality of red mangoes is why the franchise adopted it as their name; a symbol of their commitment to producing the best, all-natural ingredients for their frozen yogurt, smoothies, and parfaits.

Many spoons ago, Founder Daniel Kim opened the first Red Mango in 2007 after graduating from UC Berkeley and working as an investment banker at Donaldson, Lufkin & Jenrette. They opened the first location in California, and soon after opened stores in New York, Nevada, Utah, and Washington. The business took off once they established in Los Angeles and by 2009, they had 60 stores in operation.

Red Mango doesn’t just sell 100% all-natural frozen yogurt. They are a healthy café that sells 22 varieties of fresh fruit smoothies, parfaits, nutritional snacks, cold-brew coffees, dairy-free items, and more. Red Mango is also known for being the first frozen yogurt store to be certified by the National Yogurt Association with the Live and Active Cultures seal, indicating the company’s use of real yogurt. Their decision to sell more than just frozen yogurt is what separates them from their competitors.

 Why Red Mango is the Ripe Choice For You

Red Mango Colorful Restaurant Location

1. They Know Their Market

The frozen yogurt business is the best industry to be involved with right now. In comparison to ice cream, for example, frozen yogurt is healthier, low or non-fat, packed with probiotics that benefit the digestive and immune systems gluten-free, kosher verified, and just as delicious. It’s perfect for a healthier dessert option or even for breakfast, but more importantly, it’s a great option for people on the go. Throughout the years, Red Mango has opened more stores on or around the college campus. In an interview with Long Island Business News, Kim said the reason behind this was they “found that nutritional awareness is very high near and around college campuses, so we decided to aggressively grow onto campuses by opening on them or near them.”

2. They Support Franchisees Every Step of the Way

Red Mango knows that their success depends on the success of the franchisee, which is why their mission is to provide you with outstanding support and ongoing assistance. The business provides store opening experts to help jumpstart your business. These experts know everything about the frozen yogurt industry, so they are the ones to listen to when it comes to locating respected local and national contractors. They make sure the job gets done efficiently and professionally.

Red Mango also offers a world-class frozen yogurt training that guarantees you will be confident in the business before opening day. The initial training program is held at a designated regional training store, which can be found in New York, NY, Dallas, Texas, and Chicago, Illinois. This training is provided by the franchisor along with a training manual and other materials required to get started with the franchise. If a franchisee wants to bring another party to the training program, they must pay the franchisor a $1,500 fee.

Additional courses and seminars may be provided to the franchisee as Red Mango sees it appropriate. Furthermore, managers and key people must also go through a training program of their own to familiarize themselves with company protocol and procedures.

3. A Small Retail Footprint

When opening a franchise, there are many factors to consider, and one of them is how much space your store location should take up. What is perfect about owning a Red Mango store is the space’s smaller size is easily manageable. Red Mango is meant for grab-and-go and quick bites, so the retail space isn’t huge. A few tables, frozen yogurt dispensaries, and a toppings bar are all the customers need.

4. Always Introducing New Products

Red Mango is always developing new items to put on the menu. Whether it’s a new seasonal flavor, fun toppings to add to your yogurt, or other light, healthy foods, the franchise is always introducing products to keep customers coming back for more.

5. International Opportunities

The U.S. franchisees are not the only ones with access to a Red Mango opportunity. The frozen yogurt chain has locations in South American, Europe, Asia, and Canada.

FDD Summary

Initial Franchise Fee: $30,000

Any prospective franchisee of Red Mango is expected to pay a nonrefundable Initial Franchise Fee of $30,000. If you prefer to go the route of a Non-Traditional Store, the franchisee is expected to pay a nonrefundable Initial Franchise Fee of $17,500.

These fees are uniform for all new franchisees, however, Red Mango does offer a Veteran Discount Program, a standard multi-unit Store Development Program, and a Pioneer Store Program. If a franchisee chooses one of these routes, then the Initial Franchise Fee is subject to change.

Once all of the various fees and costs are accumulated, Red Mango estimates that the initial investment for a Red Mango franchise usually ranges from $346,100 to $495,600. These estimates depend on various factors, including the location chosen, the wage rates at the time, and the local customer base, among others.

Royalty Fees: 6.0%

Estimated Initial Investment Costs: $302,000 – $463,000

Name of Fee Low High
Initial Franchise Fee $30,000
Site Selection Fee $3,500
Project Management Fee $3,500
Lease, Deposits, and Rent $8,000 $12,500
Architect; Engineer; Drawings $7,500 $14,000
Permits $1,500 $3,000
Interior Improvements, General Contractor; Lighting; Tile $100,000 $150,000
Exterior Signage $7,500 $12,000
Millwork; Smallwares; Furniture; Interior Graphics; Fixtures; Equipment $80,000 $120,000
POS System $7,000 $10,000
Soft Serve Machines $27,000 $54,000
Inventory; Uniforms $5,000 $10,000
Pre-opening training expenses $3,000 $6,500
New Store Marketing Plan Fee $5,000
Additional Grand Opening Expenses $500 $1,000
Insurance – Liability & Workers Compensation (Initial Deposit) $1,000 $2,000
Professional Fees $2,000 $6,000
Additional Funds (3 months) $10,000 $20,000
Total $302,000 $463,000

Revenue Range: $21,998 – $717,487

The revenue range determines the gross sales of the studio before any deductions for discounts on sales, refunds, and sales taxes collected. Individual results differ and there is no assurance a franchisee will achieve these gross sales.

This opportunity is not only perfect for a frozen yogurt lover but for entrepreneurs who genuinely value what is in their product. No artificial flavoring or fakery, just all-natural, healthy ingredients that improve every customer’s wellness. Like their current franchisees, it is possible you will see a line outside of your Red Mango location and serve hundreds to thousands of people each day.

Disclaimer: The above information was derived from the year 2019 FDD of Red Mango. This data may not reflect the most current information. AskMrFranchise and affiliates are not responsible for any act or failure to act in reliance upon this report, article, data, and/or information. None of the information mentioned above should be used to substitute or replace consultation with legal or other professionals

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