13 Reasons why you should ask for your franchise fees back from red mango

1. 13 Reasons why you should ask for your red mango franchise fee back. Red mango franchise does not actually qualify as a franchise under any state law. Brix Holdings the parent company has committed fraud collecting franchise fees from you. The company does not provide any real vendor solution or savings for its franchise, as required by franchise law. Everything is outsourced. The POS system, you must source generic food on your own, Loyalty gift cards are by another company. None of these fees are entitled clearly in your franchise agreement. You most likely signed an outdated FDD document, Brix Holdings/Red Mango used a fabricated version that does not show as many stores closed as in reality. Small Business Administration does not recognize red mango as a viable business venture and refuses to fund any location. During construction they charged you project management fee which is highly illegal. You most likely signed your agreements with Brix Holdings, which in part makes all your agreements with red mango null and void thus you are under no threat of any legal litigation. The company charges you royalty and marketing but does not spend any funds in your market for marketing. Their answer to this is “WE HAVE FACEBOOK PAGE” Most of the menu items and recipes are stolen from online recipe sites & blogs, this puts you as an independent business owner in great deal of liability. The site selection process is outsourced to a third-party real estate company who has no vested interest in your success. They will perform no due diligence of your potential site or market demographics. 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 and let us explain; Every business has cost, but those costs are met by sales. Higher volume of sales depends on frequency of customers and your operational thru put, which in layman terms is how many customers can you help let say in a minute or in an hour. The thru put in red mango with smoothies or juices is so slow and arduous that even if you have a line out the door, you can only make so many smoothies and or juices, unless you implement multiple and multiple blenders or juicers or yogurt machines, which raises your cost significantly and you find yourself in a catch 22 trying to recover money for that equipment. Let’s say you have two blenders and two juicers, and you operate 12 hours per day. Even with a constant line out the door for those 12 hours. With each smoothie taking minimum 3 minutes plus another minute on transaction you will produce roughly 25 smoothies per hour using both blenders. That is if you have the most efficient two employees working, which we know won’t be happening. So even in a perfect environment it makes it super hard to recover your investment ever with this brand. 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. You have rights and you should join the fight against red mango & Brix Holdings corporation in order to get your hard-earned money back. You are entitled to receive your franchise fee and all marketing funds charged to you, if you join the fight against them in a class action lawsuit.