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How Much Does It Cost to Open Red Mango Franchise?

If you are looking towards opening a Red Mango Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Red Mango was founded in 2006 and they began franchising in 2007, about 13 years ago. Jim Notarnicola is the present CEO of the company and they have their corporate head office at 2811 McKinney Ave., #354 Dallas, TX 75204. Red Mango owns and operates 315 franchises in the United States of America.

Daniel Kim opened the first Red Mango store in 2007, near the University of California in Los Angeles and quickly began franchising the frozen yogurt shop. Red Mango’s menu has since expanded to include fruit smoothies, cold-squeezed juices, salads, wraps and other light fare in addition to its all-natural frozen yogurts, which are available in original tart or a rotating variety of other flavors, and with a variety of fruits, nuts and other toppings.

Red Mango franchise is a proven leader on the market of healthy food. The restaurants offer for sale frozen yogurt, smoothies, hot chocolate, fresh-squeezed juices, and other grab n’ go items. Red Mango frozen yogurt franchise creates perfect opportunities for the entrepreneurs who would like to start or upgrade their own restaurant business.

The requirements for owning a Red Mango cafe franchise include the availability of funds to pay the franchise fees and willingness to share the values of the company. The investment information and the recommendation about how to start a Red Mango restaurant franchise as well as the cost and profit ratio are available below.

Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Red Mango Franchise

  1. Initial Franchise Fee


Please note that the figure above reflects Red Mango’s standard Initial Franchise Fee for a Traditional Self-Serve Store. The Initial Franchise Fee for a Non-Traditional Store is $17,500.

  1. Project Management Fee


Please note that unless the parties agree otherwise, you must use the services of Red Mango’s internal development management team or its designated tenant representative consultant / broker to assist you with site selection, lease negotiations, and space planning for the Store.

  1. Lease Deposits and Rent

    $8,000 – $12,500

Please note that you must lease a location accepted by Red Mango and construct, model, alter, and improve it to their specifications. These estimates assume that your location will be a leased, unimproved, unfinished retail store-type unit.

A Traditional Self-Serve Store typically occupies 1,400 to 2,000 square feet of commercial space. These businesses are typically located on a major thoroughfare, or in or adjacent to a retail strip mall or shopping center, or in an urban storefront.

Typical rent costs usually range from $2.00 to $8.00 per square foot per month, depending on factors such as size, condition, and location.

Your rent will generally be a fixed base rent plus triple net charges. Your lease may also provide for percentage rent, which will be a percentage of your sales at the Store.

Security deposits are generally required by utilities, the landlord, and equipment lessors. Amounts will vary depending on the provisions of various leases, utilities’ policies, and your credit rating.

  1. Architect; Engineer; Drawings

    $10,000 – $12,000

  2. Permits

    $1,500 – $3,000

  3. Interior Improvements

General Contractor; Lighting; Tile: $120,000 – $175,000

Please note that the figures in the chart include a general contractor’s fee (generally equal to 10 percent to 15 percent of total construction costs); contractor’s insurance; materials and supplies; tools; labor and subcontractor fees; and other costs to construct leasehold improvements conforming to Red Mango’s standards.

  1. Exterior Signage

    $5,000 – $10,000

  2. Millwork; Smallwares; Interior Graphics; Fixtures; Equipment: $60,000 – $90,000

Please note that furniture, fixtures, and equipment includes tables, chairs, freezers, display cases, and serving equipment, artifacts, and all interior design elements. It does not include the costs of air conditioning equipment. Financing may be available for all or a portion of your equipment purchases.

  1. POS System: $7,000 – $13,000
  2. Soft Serve Machines; Chiller Unit: $62,000 – $88,000

Please note that the estimates above contemplate four soft-serve machines plus a chiller unit, to six soft-serve machines plus a chiller unit for Traditional Self-Serve Stores.  The chiller unit is approximately $10,000. The cost of the chiller unit is included in both the $62,000 (four yogurt machines) and the $88,000 (six yogurt machines) estimated cost for a Traditional Self-Serve Store.

  1. Inventory; Uniforms: $2,000 – $5,000
  2. Pre-opening Training Expenses: $3,000 – $6,500

Please note that the figures above represent the estimated cost for two individuals to attend Red Mango’s initial training program, including the program held in Dallas, which focuses on managing and operating your business.

  1. Grand Opening Advertising Promotion Fee: $10,000
  2. Additional Grand Opening Expenses: $500 – $1,000

Please note that the estimate includes costs of labor, free yogurt samplings, and product presentation.

  1. Insurance – Liability & Workers Compensation (initial deposit): $1,000 – $2,000
  2. Legal Fees: $1,500 – $3,000
  3. Additional Funds (3 months): $10,000 – $20,000

Please note that these estimates do not include pre-opening training expenses, pre-opening food waste, managerial salaries, or any payment to you. These estimates also do not take into account finance payments or charges, interest, and related costs you may incur if any portion of the initial investment is financed, or the costs of a security system, estimated to cost between $100 and $150 per month to lease.

These amounts are the minimum recommended levels to cover operating expenses, including your employees’ salaries for 3 months. However, there is no guarantee that these amounts will be sufficient. Red Mango relied on its experience in working with its franchisees in compiling these working capital estimates.

  1. Total: $346,100 – $495,600.
  2. Veteran Incentives: 50 percent off traditional-store franchise fee
  3. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  4. Financial Assistance: Red Mango – Cafe & Juice Bar has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, and inventory et al.

In Summary,

  • Initial Investment: $193,500 – $466,000
  • Net-worth Requirement: $350,000
  • Liquid Cash Requirement: $200,000
  • Ongoing Initial Franchise Fee: $30,000
  • Ongoing Royalty Fee: 6 percent
  • Ad Royalty Fee: 3 percent

How to Open Red Mango Franchise

  1. Ensure you have adequate capitalization.

In order to open a Red Mango cafe franchise, you must have a net worth of more than $350,000.

  1. Appreciate the investment required for a cafe franchise.

You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.

  1. Evaluate your prior experience and strengths.

You should thoroughly evaluate your prior business experience before applying to become a Red Mango restaurant franchise owner.

  1. Assess market availability.

You will want to look at the market availability for Red Mango franchises and see if there are available markets in your location of interest before proceeding with the franchising application.

  1. Submit your application.

Your application will be reviewed by the Red Mango franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.

  1. Receive approval & open your franchise.

You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.