FranchiseVerdict
Red Mango logo
FV-02119·MODERATEExcellent81

Red Mango

Food & Beverage - Juice & SmoothiesFranchising since 2007Website
Investment
$323K – $557K
86th pct Juice & Smoot…
Avg revenue
38th pct Juice & Smoot…
Royalty
6.0%
19th pct Juice & Smoot…
Units
45
48th pct Juice & Smoot…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $323K – $557K including a $30K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 33 loans (below the industry average).
  • System contracting at -21.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Red Mango FC, LLC
Parent company
Red Mango, LLC
Incorporated in
Texas
HQ
14860 Montfort Drive, Suite 150 PMB 34, Dallas, Texas 75254
Auditor
A&G LLP
Audited financials
Franchisor revenue
$1.2M
vs $1.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Red Mango unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $323K–$557K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

15%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$68K
EBITDA margin
9.0%
Total invested
$455K
Payback
81 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Red Mango franchisees operate frozen yogurt retail locations, serving self-serve and custom frozen yogurt with fruit toppings and add-ons. Daily operations include inventory management, equipment maintenance, customer service, and point-of-sale transactions in high-traffic retail locations. Franchisees are responsible for staffing, local marketing, and achieving sales targets to cover occupancy costs and 6% royalty obligations.

CEO
Sherif Mityas
Founded
2006
FDD year
2025
States available
10

Item 7 · what it costs

The Vitals

Total investment
$323K – $557K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$30K
Royalty
6.0%
Gross Revenue · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
45
Opened
2
Last reporting year
Closed
7
Turnover rate
15.6%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
-10.0%
Net unit change last year
3-yr CAGR
-21.1%
Compounded over last 3 years
2023
45-5
Franchised units
2024
50
Franchised units
2025
57
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 23 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 23 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
33
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

56
Risk · 0-100
MODERATE56 / 100

Red Mango presents caution-level risk due to shrinking unit base, undisclosed unit economics, going concern issues, and high capital requirements without earnings transparency.

Score breakdown · what drove the 56 / 100 rating

  1. 01MEDUnit count declined 10% YoY (45 units) — indicates contracting franchise system
  2. 02MINORNo Item 19 financial disclosure — unable to verify average unit economics or profitability
  3. 03HIGHGoing Concern status is FALSE — suggests franchisor may have solvency/viability concerns
  4. 04MINORHigh initial investment ($323k-$556k) without transparent revenue/income data creates ROI uncertainty
  5. 05MEDYogurt/frozen yogurt category has faced secular headwinds; no disclosed competitive differentiation

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
36 hrs
POS system
Revel
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

55 numbers

Locked
(214) 302-••••
The franchisor is Red Mango FC, LLC, a Texas limited liability company,
TX
(410) 576-••••
MD
(517) 335-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Red Mango · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above