Red Mango FDD – Franchise Information, Costs and Fees
Type of Business
You will operate a retail store primarily offering authentic frozen yogurt and treats, yogurt and non-yogurt based smoothie beverages, fruit-based smoothie beverages, fresh-squeezed fruit and vegetable juices, health foods, café items (e.g. wraps, salads, soups, flatbreads) and related products and services for dine-in consumption and take-out service under the trade name RED MANGO®, RED MANGO CAFÉ® and/or RED MANGO CAFÉ & JUICE BAR™. This disclosure document describes three types of franchise offerings: the Traditional Store, the Non-Traditional Store, and the RED MANGO Co-Branded with a Third Party Concept.
Corporate Information
Red Mango FC, LLC, a Texas limited liability company was originally formed on August 3, 2006, as Red Mango Franchising Company, a California corporation. In July 2010 it was converted to a Texas limited liability company and they changed their name to Red Mango FC, LLC. They maintain their principal business address at 14860 Montfort Drive, Suite 150 PMB 34, Dallas, Texas 75254. They have been offering franchises since July 2007.
Investment
The total investment necessary to begin operation of a Traditional Store ranges from $378,500 to $620,500. This includes the $35,000 that must be paid to the franchisor or an affiliate. The total investment necessary to begin operation of a Non- Traditional Store ranges from $179,750 to $403,000. This includes the $20,000 that must be paid to the franchisor or an affiliate. The total investment necessary to begin operation of a RED MANGO Store Co-Branded with a Third Party Concept ranges from $146,750 to $325,500. This includes the $20,000 that must be paid to the franchisor or an affiliate.
If you are acquiring development rights under their standard store development program, they require a commitment to develop a minimum of three Stores. At the time you sign their Store Development Agreement, you will pay the franchisor a development fee equal to the sum of the initial franchise fees due for the Stores you commit to develop provided that the initial franchise fee for the second and each additional Store developed will be reduced by 50%. For example, if you commit to develop three RED MANGO Stores (assuming that the military veteran’s program discount does not apply), the minimum development fee will be calculated as follows: $30,000 + $15,000 + $15,000 = $60,000. If all three of your stores are RED MANGO Non- Traditional Stores (assuming that the military veteran’s program discount does not apply), then the minimum development fee will be calculated as follows: $15,000 + $7,500 + $7,500 = $30,000.
