Red Mango Franchise FDD, Profits & Costs (2025)
Red Mango is a popular U.S. frozen yogurt and smoothie franchise recognized for its focus on healthy options and premium-quality ingredients. Established in 2006 by Korean-American entrepreneur Daniel J. Kim, the first American store opened its doors in 2007 near UCLA in Los Angeles.
With its headquarters in Dallas, Texas, Red Mango launched its franchising efforts in mid-2007. Red Mango’s menu highlights all-natural, nonfat frozen yogurt packed with live and active probiotics, as well as gluten-free and kosher certifications.
In addition to frozen yogurt, customers can enjoy a variety of smoothies, cold-pressed juices, yogurt parfaits, and light café offerings, including wraps and salads. The brand name draws inspiration from the idea that a mango achieves its signature red color when it is at its most flavorful and ripe.
Standing out in the frozen dessert sector, Red Mango sets itself apart through its focus on wellness and authenticity. It was the first yogurt chain to earn the National Yogurt Association’s Live & Active Cultures seal, demonstrating its dedication to probiotic-rich products.
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Initial Investment
How much does it cost to start a Red Mango franchise? It costs on average between $119,000 – $617,000 to start a Red Mango franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The total investment can vary depending on several factors, such as the store format you select, the location, and whether you decide to lease or buy the space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Lease Deposits & Rent | $4,000 – $9,000 |
| Architect; Engineer; Drawings | $8,000 – $15,000 |
| Permits | $1,500 – $3,000 |
| Interior Improvements; General Contractor; Electrical; Millwork; Tile; Plumbing; HVAC | $144,000 – $234,000 |
| Signage Package | $7,500 – $12,000 |
| Smallwares; Furniture; Interior Graphics; Fixtures; Digital Menu Boards; Equipment | $53,000 – $110,000 |
| POS System | $4,500 – $8,000 |
| Soft Serve Machines | $45,000 – $90,000 |
| Inventory; Uniforms | $4,500 – $6,000 |
| Pre-opening Training Expenses | $3,000 – $6,500 |
| New Store Marketing Plan Fee | $5,000 |
| 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 | $323,000 – $556,500 |
*RED MANGO Traditional Store
Average Revenue (AUV)
How much revenue can you make with a Red Mango franchise? A Red Mango franchised restaurant makes on average $232,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $604,000 yearly revenue for similar coffee & tea franchises. Below are a few Red Mango competitors as a comparison:
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Red Mango Cafe & Juice Bar Franchise Disclosure Document
Frequently Asked Questions
How many Red Mango locations are there?
As of the latest data, Red Mango operates a total of 65 units, all of which are franchised. The company does not currently own or operate any company-owned locations, making its entire footprint franchise-based.
What is the total investment required to open a Red Mango franchise?
The total investment required to open a Red Mango franchise ranges from $119,000 to $617,000.
What are the ongoing fees for a Red Mango franchise?
For a Red Mango franchise, the ongoing fees include a royalty fee of 6% of gross sales. Additionally, franchisees are required to contribute 2% of gross sales toward national marketing and advertising efforts. These fees help support ongoing brand development, national promotions, and operational support.
What are the financial requirements to become a Red Mango franchisee?
To become a Red Mango franchisee, candidates are generally required to have a minimum net worth of $250,000. Additionally, they should have at least $120,000 in liquid capital available. These financial requirements help ensure that franchisees have the resources needed to cover startup costs and sustain operations during the initial phase of the business.
How much can a Red Mango franchise owner expect to earn?
The average gross sales for a Red Mango franchise are approximately $0.23 million per location. Assuming a 15% operating profit margin, $0.23 million yearly revenue can result in $35,000 EBITDA annually.
Who owns Red Mango?
Red Mango franchise is owned by BRIX Holdings, a Dallas-based multi-brand franchising company that specializes in managing and growing a portfolio of food and beverage concepts.
Disclaimer
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