Line 13x9-inch pan with foil so foil extends over sides of pan; lightly butter foil. In 3-quart saucepan, melt chocolate chips over low heat, stirring constantly, until smooth. Remove from heat. Stir in chocolate frosting. Spread in pan. Refrigerate 20 minutes.
Meanwhile, in 3-quart saucepan, melt vanilla baking chips over low heat, stirring constantly, until smooth. Remove from heat. Stir in vanilla frosting and food color until well blended. Fold in crushed peppermint candy.
Spread carefully over chilled chocolate layer. Sprinkle chopped candy bars over top; press in lightly. Refrigerate just until set, about 1 hour.
As soon as fudge is set, use foil to lift fudge from pan; remove foil. Cut into 13 rows by 9 rows. Store at room temperature.