Red Mango offers buy back program.

As part of an overall effort to expand its franchising program, Red Mango, the high end frozen yogurt chain, is offering a unique buy back program, reminiscent of the customer support programs being offered by car companies. Under "Red's Real Deal" program, the company commits to purchasing a franchisee's Red Mango store for up to $275,000 if the franchisee is not satisfied with the store for any reason within the first six months of opening. The program also lowers the initial $35,000 franchise fee by $10,000 for franchisees who sign new franchise agreements in 2009 and contributes an additional $10,000 to the franchised location for local store marketing. "The Red's Real Deal program fully reflects our positive outlook for our franchise and the business model we've established," said James Franks, Red Mango's vice president of franchise sales. "It's 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." The program, described as the first of its kind, is effective immediately across 25 states.

Dan Kim, founder, president and CEO of Red Mango, notes, "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 and personally experience the excitement of owning and operating a Red Mango store. "

Red Mango has recently announced that it has reached a record number of franchise development agreements in the first quarter of 2009 and that it expects the company will see that record surpassed in the months to come. The company notes that the first quarter development deals should see Red Mango double its store count by the end of 2009. The deals, with both existing and new franchisees, will ultimately create approximately 128 new Red Mango stores over several years. The agreements include further expansion in California and Illinois as well as entry into Texas, Massachusetts, Indiana, Wisconsin, Missouri, Kansas and Tennessee.

"This has been an incredible quarter for Red Mango, and we're just getting started," said franchising vp Franks. "The spectrum of backgrounds of new franchisees who have signed with Red Mango demonstrates our enormous appeal as a brand as well as our ability to tailor the opportunity. We've found a great fit with multi-unit operators of other brands, successful entrepreneurs of family businesses and individuals looking for a great way to be their own ...