Pros & Cons Of Tropical Smoothie Cafe Franchise
There are many pros to consider when deciding to become a Tropical Smoothie Cafe franchisee. Additionally, the company offers a high level of residual income potential, as the average net profit after expenses for a Tropical Smoothie Cafe franchisee is $155,000.
However, there are also some cons to consider before accepting a franchise opportunity with Tropical Smoothie Cafe.
Blending Up Business With Tropical Smoothie Cafe
The global smoothie market size was valued at $7.09 billion in 2022 and is estimated to reach $12.42 billion by the end of 2028. Smoothies have grown in popularity over the last couple decades as versatile, flavorful, healthy food options for anyone seeking a meal on the go or a midday boost.
Franchising since 1997, Tropical Smoothie Cafe has capitalized on this blended drink trend and also offers other menu items such as sandwiches, wraps, salads, and bowls. All of the franchises smoothies are handcrafted from fresh ingredients with a focus on health and nourishment.
As of 2022, there are over 1,000 Tropical Smoothie Cafe franchise locations nationwide, and the brand is actively seeking new investors. The initial franchise fee is $30,000, plus a grand opening marketing contribution of $10,000. If you qualify to develop and operate multiple Tropical Smoothie Cafe franchise units, you will then pay $20,000 for each additional unit you decide to open. The estimated total investment necessary to open a TSC franchise ranges from $277,000 to $584,000, with a $350,000 net worth and $125,000 liquid capital requirement. The brand also charges an ongoing royalty fee of 6% gross sales, plus a combined national and local advertising fee of 5% gross sales. According to the brands 2020 Franchise Disclosure Document , based on a midpoint investment of $409,000 with estimated profits of $126,000, it should take franchisees a little over four years to recoup their initial investment.
Detailed Information On Tropical Smoothie Cafes Initial Franchise Fee Royalty Fee + 27 Other Fees
1. Initial Franchise Fee: $15,000 to $30,000
- The initial franchise fee for your first Tropical Smoothie Cafe Restaurant is $30,000, payable in full upon execution of the Franchise Agreement.
- If Tropical Smoothie Cafe approves, and you purchase additional Tropical Smoothie Cafe Restaurants, then the initial franchise fee for each such additional Restaurant is $20,000, payable in full upon execution of the Franchise Agreement.
- From time to time, Tropical Smoothie Cafe may discount or reduce the initial franchise fees for certain prospects due to special circumstances .
- In all cases, the initial franchise fee is deemed fully earned by Tropical Smoothie Cafe upon receipt and is nonrefundable.
- Tropical Smoothie Cafe uses the initial franchise fee to provide training and other services to its franchisees.
- Tropical Smoothie Cafe is a member of the International Franchise Association and participates in the IFAs VetFran program, which provides financial incentives to qualified veterans to help them acquire franchised businesses.
- In support of this program, Tropical Smoothie Cafe currently reduces the initial franchise fee for qualified veterans, to $15,000 for the first and each subsequent Franchised Business developed.
2. Grand Opening Contribution: at least $10,000
- The Grand Opening Contribution will require you to spend at least $10,000 and will be payable upon execution of the Franchise Agreement.
Incentive Referral Program
3. Royalty Fee: 6% of Gross Sales
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What Kind Of Franchise Is Tropical Smoothie
Tropical Smoothie Cafe is an American franchise smoothie and food service company. Founded in 1997 in Ft. Lauderdale, Florida, the company has over 700 locations throughout the U. S. , Puerto Rico, and the Cayman Islands.
They are known for their delicious and healthy smoothies, wraps, sandwiches and salads. All of their smoothies are made from real fruits and vegetables. They also offer all natural, fresh-squeezed juices and specialty smoothies.
Many of their locations serve beer and wine. Additionally, they offer breakfast options, soups, and flatbreads. Their menu also includes vegan and vegetarian options. They are committed to providing customers with healthier alternative food options.
Tropical Smoothie Cafe is recognized for their corporate commitment to giving back. Their foundations, Planet Fundraiser, Camp Sunshine, and Bens Friends, are all dedicated to helping children and families in need.
How Much Does A Tropical Smoothie Cafe Franchise Cost
You would invest around $430,500 to open a new Tropical Smoothie Cafe franchise. This also includes the initial franchise fee of $30,000.
This number is an average that can vary based on your location, the size of your store and other factors. Usually, the investment ranges between $277,000 and $584,000.
From pre-opening fees to the first 3 months working capital, the initial investment cost covers it all. Heres the complete breakdown of the different types of costs you can expect:
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Tropical Smoothie Cafe Franchise Operations
The brand also provides significant assistance to their franchise in order for them to succeed in their business. The companys support team will assist the franchise to develop strategies and innovate the menu in such a way that the menu will be simplified and help to reduce production costs without sacrificing quality. Ongoing support will be provided, such as an intranet platform for franchisees, newsletter publications, and meetings and conventions.
Franchisees will receive excellent support in both local and national advertising. The company will provide you with tools to increase store awareness, trail, loyalty, and buzz. They will also assist you with website development, email marketing, social media marketing, and other tasks. Online tools are also available to franchisees to remotely monitor food quality, food cost, labor cost, employees, and customer relationships.
Things You Need To Know About The Tropical Smoothie Cafe Franchise
Reaches 1,000 Locations
1. In mid-September 2021, Tropical Smoothie Cafe reached a major milestone with the opening in Flower Mound, Texas of its 1,000th location. At the time of the announcement, the company had signed agreements for an additional 249 future franchised locations, adding to an already extensive pipeline of future commitments.
2. Charles Watson, CEO of Tropical Smoothie Cafe, LLC, said, I like to say were the biggest brand youve never heard of. Weve been quietly crushing sales and growth records, thanks to our incredible franchisees who have a passion for this brand and want to open more locations across our target markets.
3. Franchisee DYNE Hospitality Group, which owns the new Flower Mound location, has 13 other Tropical Smoothie Cafes in Texas and 70 more across Alabama, Arkansas, Florida, Georgia, and Oklahoma. DYNE Hospitality Group opened its first two locations in 2011 and had plans to open 10-12 new cafes in 2021.
4. Nick Crouch, co-CEO of DYNE Hospitality Group, said, Since we opened our first location, weve seen the enormous potential of this brand, and weve wholeheartedly supported the Tropical Smoothie Cafe mission to Inspire Better in the communities we serve through our amazing food and smoothies. Its an honor that we are opening the 1,000th cafe, but whats even more exciting is the growth and awareness were experiencing across the entire system. Its an extraordinary time to be a Tropical Smoothie Cafe franchisee.
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Sponsored Information Provided By The Franchisor
Tropical Smoothie Cafe is a national fast-casual cafe concept inspiring a healthier lifestyle with more than 1,075 locations nationwide. Serving better-for-you smoothies, wraps, sandwiches and flatbreads, Tropical Smoothie Cafe also offers upgraded app technology and enhanced mobile ordering capabilities to further elevate the digital and dine-in cafe experience and emphasize the brand’s focus on convenience.
The growing national franchise has received numerous accolades, including a top 10 ranking in Entrepreneur’s Franchise 500. It has also been named to Forbes’ Best Franchises list, Franchise Times’ Fast & Serious list and the Franchise Times’ Top 200+ ranking. Notably, the franchise was also recognized on Fast Casual’s Top 100 Movers and Shakers and Nation’s Restaurant News’ Top 200.
With 10 consecutive years of same-store sales growth and the systemwide average net reviews coming in at $1,009,803* in 2021, its no wonder that more than 70% of new agreements in 2021 came in from existing Franchise Owners.
You dont want to miss out on our franchise opportunity. The ideal candidate has a minimum net worth of $350,000, which includes $125,000 in liquid assets business experience as well as alignment with our brand culture and franchise business model.
We are growing and going fast! Now is the time to own your market while theres still territory available.
Investment Details
The Financial Breakdown Of A Tropical Smoothie Cafe Franchise
Tropical Smoothie Cafe, with more than 1,000 franchise units, is one of the leading smoothie brands in the U.S. Also, they are one of the fastest-growing franchising concepts they opened more than 450 new locations in the last three years.
This franchisor is seeking new franchisees thru the whole U.S., so we decided to present to interested investors all information about the Tropical Smoothie Cafe franchise cost, fees, and the profit that can make the owner of this brand store.
The smoothies market is one of the fastest-growing industries in the United States, and now is the ideal time to get involved in it.
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How To Open A Tropical Smoothie Cafe Franchise
Request Free Info
How Much Can You Make With A Tropical Smoothie Cafe Franchise
On average, a Tropical Smoothie Cafe franchise makes $961,969 in sales annually. This is the median annual sales of the 768 Tropical Smoothie Cafe franchises operating in 2021.
Despite the COVID-19 pandemic, the Smoothie Cafe franchises are doing well in terms of growth: +6.2% and +22.8% year-on-year revenue growth in 2020 and 2021 respectively.
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Advantages Of A Tropical Smoothie Cafe Franchise
If youre almost convinced in getting a Tropical Smoothie franchise, here are a few more advantages you can check out:
Smoothie Options
Tropical Smoothie is obviously known for their smoothies but have you seen the variety? Theyve got everything from fresh fruits to veggies and even coffee or chocolate. What is also great about their smoothies is the options to customize your drink such as choosing Splenda and adding in supplements like collagen or probiotic or whey protein. And the add-ons dont stop there. You can also choose to add chia seeds, flaxseeds, spinach, whole grain oats, and more.
There is a market for people who drink healthy smoothies on the regular and your Tropical Smoothie Café can serve this type of crowd or even encourage others to live the healthy smoothie life.
A healthy start to the day.
Food
What pairs well with healthy smoothies? Healthy good food! And thats exactly what Tropical Smoothie has in their food line-up. They have wraps and salads and sandwiches. None of the greasy stuff. The food line-up co-exists with the drinks and concept in harmony which again brings in the healthy crowd towards your Tropical Smoothie Café.
Real Estate Options
Is It Profitable To Sell Smoothies
Yes, selling smoothies can be profitable depending on the size, scope, and location of the operation. Smoothie bars, stands, shops, and cafes can all be successful if operated correctly. Customers are likely to pay a premium for a freshly made smoothie made from high-quality ingredients, and many will be willing to do so because smoothies are also a good source of nutrition.
To maximize profit, it is important to purchase the best quality ingredients, control costs, and determine a pricing strategy that works in each particular market. Additionally, it is beneficial to create a strong marketing plan to ensure customers are aware of the business and the products that are being offered.
Smoothies can be a profitable venture, provided the operator follows a few key principles.
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Tropical Smoothie Cafe Training & Support
Whether the franchise comes with prior knowledge or not, the brand provides comprehensive training and support. A dedicated team is assigned to assist with franchise site selection.
In addition to the traditional location, the company will provide a complete guide to their franchise owners, as well as assistance with design and grand opening. The brand has a comprehensive training program for franchise owners, which is a four-week training program.
Tropical Smoothie training program will be held in a nearby café for two weeks, followed by a one-week classroom program at the Support Centre in Atlanta, Georgia, and a ten-day onsite training program for the grand opening. This training will last between 122 and 222 hours, with 25 hours of classroom instruction.
Is Tropical Smoothie Cafe A Franchise
Yes, Tropical Smoothie Cafe is a franchise. Founded in 1997, the cafe chain now boasts more than 600 locations and is continuing to grow. Tropical Smoothie Cafe offers a wholesome approach to fast-casual dining, with smoothies, sandwiches, wraps, and salads made from fresh ingredients.
The company offers franchise opportunities to qualified applicants and provides comprehensive training to all of its franchisees. Franchisees also have access to online and in-person operations and marketing support, including proprietary recipes and menu items, marketing collateral, and more.
For those interested in the business, Tropical Smoothie Cafe requires a minimum liquid capital investment of $110,000 and a total investment ranging from $128,715 to $368,750.
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What Is The Tropical Smoothie Cafe Franchise For Sale Rate
The Tropical Smoothie Cafe systemwide health and franchisee satisfaction can be measured by the Tropical Smoothie Cafefranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.
Tropical Smoothie Cafe franchise for sale rate over the past 3 years is 13%. Over the last year we have data for, Tropical Smoothie Cafe had a franchise for sale rate of 5%.
Without a comparison, this number doesnt mean much. Compare how the Tropical Smoothie Cafe franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Tropical Smoothie Cafe. More info in the Tropical Smoothie Cafemetrics tab.
Tropical Smoothie Cafe Franchise Costs: Estimated Initial Investment
- The amounts provided in this table are based on estimated costs for End-Cap or In-Line Tropical Smoothie Cafe Restaurants, including those located in or at strip style retail shopping centers but does not include drive-thrus. For the fiscal year 2021, these End-Cap and In-Line Tropical Smoothie Cafe Restaurants typically ranged in size from 1,200 to 1,900 square feet.
- If your Franchised Business includes a drive-thru, the additional expense would be approximately $35,000 to $45,000.
1. Initial Franchise Fee: $15,000 to $30,000
- Franchisees wishing to open more than one Tropical Smoothie Cafe Restaurant must sign a Franchise Agreement and pay an initial franchise fee for each additional restaurant. The initial franchise fee for the second and each subsequent Tropical Smoothie Cafe Restaurant is $20,000.
2. Professional Fees: $5,000 to $15,000
- You will be provided a set of plans for recommended construction in conformity with mandatory design specifications. You may be required by local codes and regulations to retain a licensed architect or equivalent professional to review or certify the plans and/or to oversee construction.
- The lower ranges assume that the site was formerly used as a restaurant so that the plans can utilize existing plumbing, electrical, etc.
3. Restaurant Fixtures, Furniture, and Equipment : $95,000 to $142,000
- You must purchase the equipment, furnishings, and other items from these designated suppliers before your Franchised Business opens.
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Wayback Burgers: A Way Better Opportunity
Burgers are not a fad or food trend dependent on a niche market or the abundance of disposable income. As legend goes, the first American burger was served at Louis Lunch sandwich shop in 1895, and the beloved food has only grown in popularity and variety since then, making it an essential part of our food story. With the fast-casual restaurant market projected to reach $209 billion by 2026, burgers continue to be an American favorite and are the perfect source of inspiration and success for hungry entrepreneurs.
While burger franchise opportunities abound, Wayback Burgers is world-renowned for our honest and uncomplicated approach to delicious, authentic food and a simple yet ambitious business model that works well for prospective franchisees from all different walks of life.
The initial franchise fee to own a Wayback Burgers franchise is $35,000, which may be discounted for any additional units thereafter. The total estimated initial investment ranges between $209,000 and $633,000, with a royalty fee of 5% gross sales and an advertising fee of 2%. Wayback Burgers franchisees benefit from unparalleled training and ongoing support with everything from site selection to advertising campaigns, menu development, and operational guidelines.
Burgers are here to stay, and Wayback Burgers can provide you with all of the tools and support to build a business that lasts. To learn more about our way better franchising opportunities, get started today.
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