Tropical Smoothie Cafe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$340,750 - $814,500
Franchise Fee
$17,500
Min Cash Required
$10,000
Total US Locations
1,515
Business Summary
Tropical Smoothie Cafe operates a fast-casual restaurant concept that focuses on serving healthy food and beverages. Tropical Smoothie Cafe locations offer a variety of premium, handcrafted smoothies made with fresh fruits and vegetables, proprietary recipes, and additional menu items like specialty sandwiches, flatbreads, wraps, salads, and bowls. Tropical Smoothie Cafe provides options for breakfast, lunch, and dinner, including a kids menu, aiming to inspire a healthier lifestyle for its customers in a fun and friendly environment.
Corporate History
The Tropical Smoothie Cafe brand was originally founded in Destin, Florida, in 1997. The predecessor company, Tropical Smoothie Cafe, LLC (TSC), a Georgia limited liability company, began offering franchises for sale in 2012. In June 2024, TSC was acquired by investment funds managed by affiliates of Blackstone, Inc. The current franchisor entity, TSC Franchisor, LLC, a Delaware limited liability company, was organized in July 2024 and officially began offering Tropical Smoothie Cafe franchises as of October 14, 2024, after acquiring assets from TSC through a securitization transaction. The brand is focused on its mission to be a beloved restaurant brand by sharing the fun and craveability of the tropics.
Financial Overview
Investment Range
$340,750 - $814,500
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$292,500
Equipment Costs (High)
$623,000
Working Capital
$33,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tropical Smoothie Cafe's financial statements for both TSC Franchisor, LLC and TSC Intermediate, Inc. and its subsidiaries have received unqualified opinions from their independent auditors. The auditors' reports for both entities did not raise any substantial doubt about the companies' ability to continue as a going concern. This indicates that Tropical Smoothie Cafe's financial position is presented fairly in all material respects according to accounting principles generally accepted in the United States of America.
Financing Details
Tropical Smoothie Cafe does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
1,515
Franchised Units
1,514
Corporate Units
1
Avg Square Footage
1,500
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Tropical Smoothie Cafe has disclosed one litigation case. This involved an arbitration proceeding filed in April 2016 by JSG Management Co., a former franchisee. The franchisee alleged that Tropical Smoothie Cafe breached its agreement by changing the operations manual for a breakfast initiative and made fraudulent financial misrepresentations to encourage further investment. Tropical Smoothie Cafe denied these claims, asserting its right to modify the manual and system, and filed a counterclaim for breach of contract due to the franchisee's unauthorized early closure and failure to meet post-termination obligations. The parties reached a settlement in November 2016, where Tropical Smoothie Cafe paid $62,500 without admitting liability.
Bankruptcy History
Tropical Smoothie Cafe has no bankruptcy information required to be disclosed.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Tropical Smoothie Cafe franchisees must provide advance written notice, and if required by Tropical Smoothie Cafe, remodel their business to meet the then-current brand image for new Tropical Smoothie Cafe Restaurants. They must not be in default, be in compliance with all System requirements, satisfy all monetary obligations to Tropical Smoothie Cafe and its suppliers, and sign a general release. There are no additional renewal fees charged.
Training & Support Program
Franchisor Assistance
Tropical Smoothie Cafe provides comprehensive assistance to its franchisees. Before opening, Tropical Smoothie Cafe offers guidance on acceptable site criteria, reviews and advises on potential locations, and provides mandatory and suggested specifications for restaurant design, equipment, and initial inventory. Franchisees receive an initial training program, which currently includes virtual classroom training and three to four weeks of in-cafe training. Tropical Smoothie Cafe also provides opening assistance with a representative for at least five days on-site for a franchisee's first restaurant, and loans access to operating manuals. Ongoing support includes general advisory assistance and field support, individual or group advice via visits, telephone, newsletters, or bulletins, and recommended or required pricing for products. Tropical Smoothie Cafe also provides recommended procedures and tools for administration, bookkeeping, accounting, and inventory control. Franchisees receive periodic updates to the operating manuals, undergo quality control reviews, benefit from the management of the National Marketing Fund for advertising and promotional programs, and have their restaurant's location included on the Tropical Smoothie Cafe website. Tropical Smoothie Cafe also provides or grants access to lists of approved suppliers.
Initial Training Hours
235
Training Location
Currently, classroom training is conducted virtually, and in-cafe training takes place at an existing Tropical Smoothie Cafe Restaurant selected by a Regional Director or Franchise Business Leader. The franchisor's Support Center in Atlanta, GA, is the typical location for in-person classroom training when it is not virtual.
Ongoing Support
Tropical Smoothie Cafe provides ongoing support through general advisory assistance and field support, including periodic individual or group advice via personal visits, telephone, newsletters, or bulletins. Tropical Smoothie Cafe provides recommended or required pricing for certain products and recommended or required procedures and tools for administration, bookkeeping, accounting, and inventory control. Franchisees receive updates to the operating manuals, undergo periodic quality control reviews, and benefit from the management of the National Marketing Fund, which oversees advertising, promotion, and marketing programs. Tropical Smoothie Cafe also maintains a brand website that includes franchisee locations and provides updated lists of approved suppliers. Additionally, Tropical Smoothie Cafe offers optional or mandatory continuing education and training programs, meetings, seminars, and conventions, which franchisees and their managers may be required to attend.
Franchise Requirements
Ideal Candidate Profile
Tropical Smoothie Cafe seeks qualified candidates to operate its restaurants. While personal participation in the direct operation of the business is recommended, it is not strictly required. If the franchisee is an entity, they must designate an "Operating Principal" who holds at least 5% ownership of the business and has decision-making authority. This Operating Principal, or an approved manager, must provide direct, on-site supervision and successfully complete the initial training program. The success of a Tropical Smoothie Cafe franchise is largely dependent on the franchisee's own abilities, efforts, and active participation in daily operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Tropical Smoothie Cafe grants franchisees a protected area within a one-half mile radius around the specific restaurant location. This protection ensures that Tropical Smoothie Cafe will not operate or grant rights to other franchisees to operate a Tropical Smoothie Cafe Restaurant within this Protected Area, provided the franchisee is in substantial compliance with their agreement. However, Tropical Smoothie Cafe reserves the right to establish or license other Tropical Smoothie Cafe Restaurants within this Protected Area if they are located in what is defined as a 'Reserved Facility,' such as an enclosed shopping center, university, stadium, airport, or military complex.
Staffing Notes
Tropical Smoothie Cafe requires franchisees to employ sufficient staff to operate the business at all times and maintain employee dress and appearance according to brand standards. Franchisees are solely responsible for hiring, training, and supervising their employees, ensuring they are fully trained for their duties and comply with all applicable laws. The franchisor may also require the use of a learning management system for employee training. Managers, along with the Operating Principal, must complete the initial training program. Franchisees must also obtain confidentiality and non-competition agreements from owners, managers, and any employees with access to Tropical Smoothie Cafe's training or confidential information.