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Red Mango Franchise Costs $119K – $617K (2024 Fees & Profits)

Red Mango Cafe & Juice Bar was established in 2007 and is headquartered in Dallas, Texas. This franchise is known for its all-natural frozen yogurt and healthy café options, such as smoothies and juices made from fresh fruits and vegetables. Today, it has over 100 locations in the United States and Puerto Rico, catering to customers looking for nutritious food choices.

Red Mango was inspired by the idea that mangos turn red when they are perfectly ripe, which represents the brand’s dedication to high-quality, natural ingredients. The menu offers more than just frozen yogurt; it includes a variety of light meals and beverages that appeal to health-conscious individuals.

One of Red Mango’s selling points is the huge support it gives its franchisees. This includes comprehensive training, real estate selection expertise, and ongoing operational and marketing support. The company leverages the experience of BRIX Holdings, LLC, ensuring franchisees receive guidance from a seasoned team dedicated to the success of each location.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$30,000
Site Selection Fee$3,500
Project Management Fee$3,500
Lease Deposits & Rent$8,000 – $12,500
Architect; Engineer; Drawings$7,500 – $14,000
Permits$1,500 – $3,000
Interior Improvements, General Contractor; Lighting; Tile$130,000 – $190,000
Exterior Signage$7,500 – $12,000
Millwork; Smallwares; Furniture; Interior Graphics; Fixtures; Equipment$90,000 – $150,000
POS System$7,000 – $10,000
Soft Serve Machines$40,000 – $80,000
Drive-thru Equipment$6,000 – $18,500
Drive-thru Electronics$10,000 – $12,000
Inventory; Uniforms$6,000 – $11,000
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*$372,000 – $590,000
* for a traditional store

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee for a Traditional Store is $30,000, with possible discounts for military veterans or through the Early Franchise Incentive Program. For a Non-Traditional Store, the fee is $15,000. Co-branded stores with SMOOTHIE FACTORY incur an additional $5,000 license fee, though this may be waived under certain promotional conditions.

Royalty Fee

The royalty Fee is set at 6% of Gross Revenue, payable weekly. For franchisees under a RED MANGO-SMOOTHIE FACTORY Co-Brand Amendment, the Gross Revenue includes the total sales of RED MANGO and SMOOTHIE FACTORY products, services, and merchandise.

Marketing Allocation

For Traditional and Co-Branded Stores, a Marketing Allocation of 3% of Gross Revenue is required weekly, with a suggestion to spend an additional 1% on local marketing. Non-Traditional Stores are required to contribute 1% to the Brand Development Fund, with a recommendation to spend an additional 1% on local marketing.

Interest on Overdue Amounts

Interest is charged on all overdue amounts at the lesser of 1.5% per month or the highest legal rate, payable on demand.

Technical Services Fee

A fee of $150 per Accounting Period is charged for technical services, including gift card processing and FranConnect costs, payable once per accounting period.

Managed Security Service Provider Fee

Actual costs, typically between $250 and $350 a month, are charged for in-store network security services, which are payable on demand.

Costs for RED MANGO Goods and Services

Costs are invoiced by the Designated Supplier for proprietary products, payable on delivery.

Late Charges and NSF Fees

Late charges accrue at 18% per year, and Non-Sufficient Funds charges start at $50, increasing to $100 for subsequent instances within a 12-month period, payable on demand.

Guest Experience Monitoring Fee

A fee of up to $500 per year is charged for conducting secret shopper programs at your Store or Non-Traditional Store, payable as incurred.

Initial and Additional Training Fees

An initial training fee of $1,500 per person is charged if additional persons are trained beyond the first two provided at no cost, payable on demand.

Renewal and Transfer Fees

A Renewal Fee of 25% of the then-current initial franchise fee is required before renewal. Transfer Fees vary depending on the nature of the transfer, with fees due before the transfer.

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How to apply

1. Research and Evaluate the Franchise Opportunity

  • Investigate the market for café and juice bars to understand the demand and competition.
  • Review the success rates and reputation of the Red Mango franchise.
  • Assess your alignment with the brand’s ethos and customer service philosophy.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully read the FDD provided by Red Mango. This document contains essential information about the franchise’s legal, financial, and operational aspects.
  • Consider consulting with a franchise attorney to understand the obligations, restrictions, and risks outlined in the FDD.

3. Secure Financing

  • Determine the total investment required, including franchise fees, equipment, initial inventory, and operational expenses.
  • Explore financing options such as loans, investor funding, or personal savings to cover the startup costs.
  • Evaluate financial projections and ensure you have adequate working capital for the initial phases.

4. Choose a Suitable Location

  • Analyze demographic data to find a location with a high potential customer base for a café and juice bar.
  • Consider factors like foot traffic, parking availability, and proximity to complementary businesses.

5. Design and Launch the Café

  • Follow Red Mango’s guidelines for interior design and layout to ensure brand consistency.
  • Purchase and install the necessary equipment for preparing and serving juices, smoothies, and other café offerings.
  • Train staff on Red Mango’s operating procedures and customer service standards.

6. Obtain Necessary Licenses and Permits

  • Apply for all required local, state, and federal licenses and permits to operate a food service business.
  • Ensure compliance with health and safety regulations to pass inspections.
  • Keep all legal and health compliance documents up to date.

7. Launch Marketing and Promotional Activities

  • Develop a marketing plan that includes grand opening promotions, local advertising, and social media engagement.
  • Build relationships with the local community and other businesses to create a network of supporters.
  • Implement loyalty programs and customer feedback mechanisms to establish a repeat customer base.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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