DALLAS Red Mango, the 45-unit frozen yogurt chain, has unveiled a program in which it will buy back a store for up to $275,000 if a franchisee is dissatisfied within six months of opening.
The chain’s “Red’s Real Deal” program, effective immediately, also lowers the initial $35,000 by $10,000 for franchisees who sign new agreements in 2009 and provides an additional $10,000 to the franchised location for local-store marketing.
James Franks, Red Mango’s vice president of franchise sales, described the program as "the most transparent and bold statement we could think of to express our intent to grow our network and our commitment to develop a system of satisfied franchisees."
Earlier this month, the two-year-old Red Mango USA outlined growth plans for the chain, with the Dallas and New York City areas as major targets. The company has units in California, Hawaii, Illinois, Nevada, New Jersey, New York Utah and Washington.
Dan Kim, founder, president and chief executive of Red Mango, added: “The Red’s Real Deal program provides new Red Mango franchisees a measure of safety, which I hope will encourage qualified entrepreneurs to build their first store.”
Red Mango was founded in 2002 in South Korea and opened its first U.S. store in Los Angeles in July 2007.
Contact Ron Ruggless at [email protected].