Red MangoFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Red Mango franchise requires a total initial investment of $323K – $557K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $546K[2]. SBA 7(a) loans show a 30.8% charge-off rate across 14 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $323K – $557K
- 62nd pct Service Resta…
- Avg gross sales
- $546K
- 11th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 45
- 61st pct Service Resta…
- SBA default
- 30.8%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
30.8% of SBA loans charged off across 14 loans, above the 16% franchise average.
The system contracted 10% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $323K – $557K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $546K/year.
- Verdict F (Bottom Quintile) with a risk score of 92/100. SBA loan charge-off rate of 30.8% across 14 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- TX
- 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
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
- Headquarters
- TX
- Founded
- 2006
- FDD year
- 2025
- States available
- 10
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $20K |
| Equipment, build-out, other | $283K | $507K |
| Total initial investment | $323K | $557K |
Source: Red Mango 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$71K
13.0% margin
Unlevered ROIC
16%
EBITDA / total invested capital
Payback
6.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $323K – $557K
- Near category avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $15K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $8K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $546K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 43 units
- vs category median 28
- Range (low → high)
- $4K→$1.1M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Red Mango Compares
Unit growth
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
3-year detail · Item 20
- Transfers (3yr)
- 0
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $6.1M
- Median loan
- $220K
- 50th percentile
- Charge-off rate
- 30.8%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 69.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Red Mango's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
A 30.8% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Red Mango presents caution-level risk due to shrinking unit base, undisclosed unit economics, going concern issues, and high capital requirements without earnings transparency.
Audited financials (Item 21)
Yes · A&G LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 92 / 100 rating
- 01MEDUnit count declined 10% YoY (45 units) — indicates contracting franchise system
- 02MINORNo Item 19 financial disclosure — unable to verify average unit economics or profitability
- 03HIGHGoing Concern status is FALSE — suggests franchisor may have solvency/viability concerns
- 04MINORHigh initial investment ($323k-$556k) without transparent revenue/income data creates ROI uncertainty
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 36 hrs
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
55 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Red Mango · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Red Mango franchise?
The total investment to open a Red Mango franchise ranges from $323K – $557K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Red Mango franchise owners earn?
According to Item 19 of the Red Mango FDD, the average gross sales per unit is $546K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Red Mango's franchise failure rate?
Based on SBA 7(a) loan data, Red Mango has a charge-off rate of 30.8% across 14 loans, meaning 30.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Red Mango franchise locations are there?
As of their most recent FDD filing, Red Mango has 45 total units in the United States, including 45 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Red Mango a good franchise to buy?
FranchiseVerdict rates Red Mango as a F-grade franchise with a risk score of 92 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.