March 29, 2019 ADMIN 3 Comments Brix Holdings, Craig Erlich, franchise complaints, franchise opportunity, frozen yogurt franchise, Jim Notarnicola, Mitzi Brown, Red Brick Pizza, Red Mango, Red Mango franchise, Red Mango franchise complaints, Red Mango franchise opportunity, Richard Jensrud, Smoothis Factory
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.
According to Red Mango franchise marketing, “Red Mango Yogurt Café is an established leader among frozen yogurt franchises… we truly enjoy helping our franchisees build strong, successful businesses and make a positive impact in their local communities.”
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.”
Red Mango Franchise Has a History of Store Failures & Turnover
review of past Red Mango franchise disclosure documents (FDDs) produced by the franchisor indicates a far less rosy picture than that portrayed in Red Mango’s marketing.
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.
Red Mango Franchise Failures: Why So Many?
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.
- Why are so many Red Mango franchise owners unable to recoup their investments?
- What steps has the franchisor taken to help struggling Red Mango franchise owners? Are they working?
- With franchise turnover at 55%, should Red Mango stop selling franchises until the problem is identified and the system fixed?
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.
RED MANGO FRANCHISE COMMENTS INVITED
Please help us stimulate a meaningful discussion on the Red Mango franchise opportunity by sharing this page link, especially with these individuals:
Red Mango Officers & Management
- Craig Erlich, President and Chief Executive Officer:
- Richard Jensrud, Chief Financial Officer
- Melitha Lynn Brown, Chief Legal Officer
- Mitzi Brown, Chief Legal Officer
- Jim Notarnicola, Chief Marketing Officer, VP Franchise Sales
Red Mango Franchisees Who Recently Left the System, Including:
- Linda S. Tyler Little Rock AR
- Kay’s Mango, Inc. (Kay Kim) Emeryville CA
- Mohammed Ghaith Mulki and Zafer Jawich Naperville IL
- Romana, Inc. (John Park) Naperville IL
- Dal Soo Kwon Bloomington IN
- Greensphere Inc. (Raji Ramachandran) Freehold NJ
- Le Rimin Corp. (Jungmin Kim) Palisades Park NJ
- Kwok Law & Norman Chan Oakland Gardens NY
- Froyo of Oceanside, Inc. (Christopher Cianciulli) Oceanside NY
- J&B Restaurant Partners Nassau College LLC (William Murphy & Greg Alagna) Uniondale NY
- Apt Dotini, LLC+ McAllen TX
- HH & HM Enterprises, LLC (Helen Holt Paulson & Margaret Holt) Little Rock AR
- Manmeet Lamba Fairfield CT
- G.E. Coghlan LLC (Gerald Coghlan) Deer Park IL
- Huoy Kang Lim and Keangleng Urn Braintree MA
- Aryan International LLC (Sanjiv Chokshi and Sweta Chokshi) Basking Ridge NJ
- Angela S. Eftychiadis and Christos P. Eftychladis Montclair NJ
- Sunny B. Shakahawala Riverdale NJ
- ADPP Enterprises Inc. (Valshali Khunti) Rochelle Park NJ
- Jersey Mango, LLC (Yueh-Han Kuo) Watchung NJ
- Christopher C. Cianciulli Brooklyn NY
- Glenn Taus and Joshua A. Cmaylo Brooklyn NY
- S&S Red 2 Inc. (Erin Yeonok Oh) Flushing NY
- Jennifer Ma Fresh Meadows NY
- Punto Rosso, LLC (Ignatey Terzian) Garden City NY
- Scott Buda and John C. Hunter Hewlett NY
- Frank and Kimberly Staffers Jericho NY
- LZ Frozen Yogurt LLC (Qide Liu and Tzang Ching Zhou) New York NY
- Bolla Operating Oorp. (Harvinder Singh) New York NY
- De Xie New York NY
- EW Frozen Yogurt, Inc. (Dmytro Voropayev) Oakdale NY
- Onkar Duggal Woodbury NY
- Chun Yeung Jimmy Wu Yonkers NY
- 3TUG, LLC (Janet C. Tu) Houston TX
- Buddy Beach and Rebecca Beach Lubbock TX
- Namara RM, LLC Salt Lake City UT
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