Red Mango is a franchise opportunity promoted and sold by Red Mango, FC, LLC, a Texas limited liability company. It requires an investment of $287,000 to $423,000. Almost from the start, Red Mango has had a disturbingly high store failure and turnover rate. We are asking Red Mango franchisees, employees and corporate executives why so many Red Mango stores close and franchise investments are lost.
(UnhappyFranchisee.Com) According to Red Mango franchise
Red Mango claims that its “outstanding support team” provides “training and support every step of the way for your frozen yogurt franchise, including marketing assistance.”
Red Mango marketing implies that franchisees can feel confident investing $287,000 to $423,000 in its franchise, since its “parent company BRIX Holdings, a world-renowned team known for creating exceptional growth and improvement in a variety of restaurant franchises.” Brix’s current holdings include Red Mango Frozen Yogurt, Smoothie Factory & RedBrick Pizza.
The Red Mango franchise website states “With more and more consumers realizing the importance of a healthy diet and lifestyle, there’s never been a better time to own a frozen yogurt franchise.”
Even in its early years, Red Mango had a high franchise turnover rate.
Between 2007 – 2011, Red Mango opened 164 U.S. franchises. During that same period, 48 (27%) of those franchises were terminated (24), reacquired by the franchisor (6), or ceased operation for other reasons (15).
According to the 2018 Red Mango Franchise Disclosure Document (FDD), the failure rate has become even worse in recent years.
Of the 212 domestic Red Mango franchise agreements that existed between 2015 – 2017, more than half (55%) were terminated or transferred to new owners.
If the 116 franchisees who left the system each lost $300,000, that would mean nearly $35,000,000 was lost on Red Mango franchise investments in just that 3 year period.
Of course, these losses were incurred by Red Mango franchise owners. Red Mango, FC, LLC showed a profit in each of these years.
We have received complaints from Red Mango franchise owner. One states:
Most red mango franchisees are in huge debt and many are working second jobs just to keep the business going. All along red mango & Brix Holdings is the only one making money
My friends lost all their savings and are in tremendous debt, the formula will never make money. They survive through franchise fees collected and keeping the company going through intimidating franchisees.
Another complaint warns that the Red Mango concept itself is not viable:
The operational cost to return on investment simply does not make any sense in a red mango venture. The cost of doing business in the united states has skyrocketed, Rents, Insurances, Wages, Taxes, Utilities, all these costs would never be recovered from selling juices, smoothies, or yogurts. You will dig yourself in a bigger debt hole while dreaming this business will alleviate your life. The numbers simply do not make sense. Your Breakeven point will never be met…
However, we would like to hear the opinions of current and former franchise owners, employees and corporate executives on the high failure rates that seem to have plagued Red Mango from the start.
Please share your opinions in the comment section below (anonymous comments are fine), or email us your thoughts (in confidence) at UnhappyFranchisee[at]Gmail.com.
If you would like to help UnhappyFranchisee.com investigate and report on the Red Mango franchise please consider contributing to the Red Mango Franchise Investigation fundraiser at GoFundMe.
Please help us stimulate a meaningful discussion on the Red Mango franchise opportunity by sharing this page link, especially with these individuals:
Red Mango Franchisees Who Recently Left the System, Including:
ALSO READ:
FRANCHISE DISCUSSIONS by Company
Red Mango Franchise Investigation (GoFundMe)
ARE YOU A RED MANGO FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE RED MANGO FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
TAGS: Red Mango, Red Mango franchise, Red Mango franchise opportunity, Red Mango franchise complaints, Brix Holdings, frozen yogurt franchise, franchise opportunity, franchise complaints, Smoothis Factory, Red Brick Pizza, Craig Erlich, Richard Jensrud, Mitzi Brown, Jim Notarnicola
Update: Florida Politics has revised the headline to read "Keith Gross disputes GoFundMe claims of…
Greater Philadelphia Veterans Network (GPVN) is a 501c3 organization. They claim “We guide Veterans through…
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
View Comments
I am a red mango franchisee and you are doing a great thing for all of us. This is what is needed to help bring these monsters like jim notornicola and craig ehlrich to justice. They promise so much and deliver so little. Can you do something so a class action lawsuit be brought against them faster. I would like my franchise fee and royalties back
Great Post. I'm studying about franchise, and this post is very useful for me. Thanks