How Much Does A Tropical Smoothie Franchise Owner Make

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How Stable Is Tropical Smoothie Franchise Development Corporation

Tropical Smoothie Franchise Cost Exposed

The FDDs raise a few additional red flags. The first is the financial stability of the franchisor, Tropical Smoothie Franchise Development Corporation. The 2011 Tropical Smoothie Cafe FDD states:

December 2010 AUDITED FINANCIAL STATEMENTS SHOW THAT WE HAD A RETAINED EARNINGS DEFICIT OF $3,280,977 AND A DEFICIT IN SHAREHOLDERS EQUITY OF $3,097,524

The 2012 Tropical Smoothie Cafe FDD states:

OUR DECEMBER 31, 2011 AUDITED FINANCIAL STATEMENTS SHOW THAT WE HAD A RETAINED EARNINGS DEFICIT OF $4,702,096 AND A DEFICIT IN SHAREHOLDERS EQUITY OF $4,518,661

Not only does that indicate that the franchisor appears to be in poor financial shape, but that it worsened by nearly $1.5M from 2010 to 2011. Minnesota requires the escrow of franchise fees due to the Franchisors financial condition.

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Why I Sold My Subway Shops To Open A Smoothie Franchise

Franchise Players is Entrepreneurs Q& A interview column that puts the spotlight on franchisees. If you’re a franchisee with advice and tips to share, email .

Linda Morgan

Linda Morgan is a franchise industry veteran. She began working in the restaurant business at age 16 as an hourly employee at Burger King. In 1990, she and her son-in-law opened their first Subway location. Today, however, they’ve sold their Subway shops and turned to Tropical Smoothie Café. Here’s why they decided to make the switch from sandwiches to smoothies, and what they’ve learned during their decades in the franchising business.

Name: Linda Morgan

Franchise owned: Tropical Smoothie Café, with 14 locations across Alabama, Florida and Georgia

How long have you owned a franchise?

Ive been in franchising since 1990, when my son-in-law, Russ Rissman, and I opened our first Subway location. After selling all our Subway stores, we became Tropical Smoothie Café franchisees in 2011.

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Why franchising?

While some mom-and-pop shops are successful, many of them fail. Its difficult to go out on your own. You have to come up with a product and market it something not everyone is fit to do. We knew we wanted to have multiple locations and it would have been much more challenging to do that if we had not have had the backing of a proven business model like Tropical Smoothie Café.

What were you doing before you became a franchise owner?

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How Much Does It Actually Cost To Open A Tropical Smoothie Cafe

Are you interested in owning a healthy franchise business? A Tropical Smoothie Cafe could be the right franchise for you. With a wide variety of smoothies, wraps, sandwiches, salads, and flatbreads, Tropical Smoothie Cafe is a favorite among customers looking for a good-for-you meal or middle of the day pick me up.

In fact, all the franchises smoothies are handcrafted using select blend of fruits and vegetables. If youre looking for a business motivated by health, nourishment, and encouraging an active lifestyle, the Tropical Smoothie Cafe could be an investment match.

How much will it cost to open a Tropical Smoothie Cafe? Youll need approximately $200,000 $570,00o to open a retail shop. Youll also need liquid capital of $125,000 and a net-worth of $350,000 to qualify. This is a lot of money, but not as large of an investment as you would need to participate in other franchise opportunities like Burger King that requires a net worth of $1.5 million to be considered.

$5,000$5,000

Its important to note these the initial costs youll need to get your business started. There may also be additional fees that are not accounted for in these numbers that depend on the location or type of store you want to open.

Heres a breakdown of the ongoing fees and costs required to own a Tropical Smoothie Cafe:

Type of Fee
Restaurants

How Are Tropical Smoothies Made

Planet Smoothie Franchise Co

TropicalmakesmoothiessmoothieTropicalsmoothies

. Furthermore, are tropical smoothies made with real fruit?

They mainly include fresh fruit, kale & apple slaw, and chips. Fresh fruit is an easy win for the most nutritious side at Tropical Smoothie Cafe. The options include apples, bananas, and oranges. Choosing an orange will yield the fewest calories, carbs, and grams of sugar.

Similarly, what’s in a Bahama Mama from Tropical Smoothie? Bahama Mamma = Pineapple, Strawberries, White chocolate, coconut, and yogurt.

Considering this, is Tropical Smoothie Black Owned?

a successful and vital part of the community. They also have some very committed patrons, who buy only from their store, because they love the products and it’s black owned.

Does Tropical Smoothie add sugar?

Review of Tropical Smoothie Cafe. Ask for NO Additional SUGAR in smoothie! In fact, the chain actually adds pure sugar into this smoothie: “Turbinado,” one of sugar’s sneaky names, appears right on the ingredients list.

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Is Tropical Smoothie A Meal Replacement

Tropical smoothies are an excellent meal replacement option, thanks to their high fiber ingredients, and some tropical smoothies are great for weight loss, too. If youre looking for an extra protein boost, a tropical smoothie recipe with Greek yogurt or a scoop of protein powder is the perfect fix.

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What Is In Tropical Smoothie Mango Magic

Mango Magic Smoothie is the current smoothie obsession by my swimmer that is made as a copycat to the Tropical Smoothie Cafe smoothie with just three simple ingredients of mango, pineapple, and greek yogurt. These mango pineapple smoothies blend up in a minute with the smoothie cups on the blender.

Tropical Smoothie Cafe Franchise Opportunities

Tropical Smoothie Cafe Franchising – A Day in the Life of a Franchise Owner

Tropical Smoothie Cafe, sometimes referred to as Tropical Smoothie, or TSC, is a restaurant franchise in the United States. Tropical Smoothie Cafe, LLC was founded in 1997 and is based in Atlanta, Georgia.In addition to smoothies, the cafes offer sandwiches, wraps, salads, flat breads, and introduced bowls to their food line in 2017. Tropical Smoothie Cafe operates more than 650 locations nationwide with 2,000 projected openings across the United States by 2024.

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What Liquid Goes Into Smoothies

Liquid: Your choices include milk, non-dairy milk, coconut water, iced coffee or tea, and juice. If you want to punch up the protein, go for milk or pea protein milk, which contain 8 to 10 grams per cup. If youre getting ample protein from another source, coconut water or almond milk are lighter ways to go.

How Much Does Tropical Smoothie Cafe In Florida Pay

Average Tropical Smoothie Cafe hourly pay ranges from approximately $9.14 per hour for Customer Service Associate / Cashier to $15.91 per hour for Manager in Training. The average Tropical Smoothie Cafe salary ranges from approximately $17,000 per year for Shift Leader to $48,152 per year for Café Manager.

Please note that all salary figures are approximations based upon third party submissions to Indeed. These figures are given to the Indeed users for the purpose of generalized comparison only. Minimum wage may differ by jurisdiction and you should consult the employer for actual salary figures.

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Section V Financial Performance Representations And Analysis

  • The following tables provide historical sales information for Tropical Smoothie Cafe franchised restaurants that were open at least one full year as of: the calendar year 2019 for 652 Restaurants the calendar year 2018 for 569 Restaurants and the calendar year 2017 for 485 Restaurants.
  • The tables do not include any financial performance information for any other types of franchises, such as non-traditional locations or seasonal locations, and do not include any franchises of any type that had not been open for at least one year on December 29, 2019, December 30, 2018, and December 31, 2017, respectively.
  • The information presented is not a forecast of future potential performance.
  • For purposes of the tables below, Net Revenue means all revenue related to the sale of products and performance of services at the Restaurant, whether cash or credit, and regardless of collection in the case of credit, and income of every kind or nature related to the Restaurant, less any discounts. Net Revenue does not include bona fide refunds to customers, revenues from sales taxes or other add-on taxes collected from customers by you and actually transmitted to the appropriate taxing authority, sales of used equipment not in the ordinary course of business, or sales of gift cards or similar products .
  • The tables provide the average and median net revenues for the following categories of Restaurants in 2019, 2018, and 2017 on a category and cumulative basis:

How Much It Cost To Open A Tropical Smoothie Franchise

Planet Smoothie Franchise Success

FRANCHISE FEES

  • Investment: $254,000 $385,000
  • Franchise Fee: $15,000 $30,000

$75,000 is required in available capital if you want to become a franchisee. Tropical Smoothie Cafe expects new franchisees to have a net worth of at least $100,000. The low end of the total investment required to open a new franchise is $254,000. $385,000 is the maximum that someone opening a location should expect to invest.

New franchisees pay Tropical Smoothie Cafe a franchise fee of $30,000 for the first Cafe, $20,000 for every additional Cafe, and ,000 for qualified Veterans. This fee covers your training, plans for building out the Cafe, access to the systems, technology, operational support and more. Franchise agreements last for 15 years.

Royalty Fees

Each Cafe pays 6% toward royalty fees, 3% toward national marketing, and 2% towards local store marketing based on gross sales.

Trainings That Will Be Provided

Tropical Smoothie Café has always believed in setting up their own franchisees for success. They provide different kinds of training which includes: a four-week training program, consisting of two weeks in a nearby Cafe, one week in a classroom setting at their Support Center in Atlanta, Georgia and one week onsite for your Grand Opening.

Franchise Location and size

If you are considering a Tropical Smoothie Cafe franchise, these are some of fees you should take note of

  • Initial Franchise Fee: $15,000 to $30,000
  • Grand Opening Contribution: at least $7,500
  • Incentive Referral Program

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    How Much Does A General Manager Make At Tropical Smoothie Cafe In The United States

    Average Tropical Smoothie Cafe General Manager yearly pay in the United States is approximately $45,247, which is 19% below the national average.

    Please note that all salary figures are approximations based upon third party submissions to Indeed. These figures are given to the Indeed users for the purpose of generalized comparison only. Minimum wage may differ by jurisdiction and you should consult the employer for actual salary figures.

    What Do You Think

    Are you familiar with the Tropical Smoothie Café franchise opportunity?

    What do you think accounts for the SBA loan failure rate of Tropical Smoothie Café franchise owners?

    What steps should Tropical Smoothie Café be taking to stop further franchise failures?

    Has Tropical Smoothie Café taken serious action to address the problems that led to these loan failures?

    Please share a comment or Contact UnhappyFranchisee.com.

    ARE YOU FAMILIAR WITH THE TROPICAL SMOOTHIE CAFE FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR TROPICAL SMOOTHIE CAFE FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.

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    Eat Better Feel Better Its Our Mantra

    Todays consumers are embracing healthier food options and more active lifestyles. Tropical Smoothie Cafe is ready to satisfy the cravings of our health-conscious, flavor-craving guests. To keep up with them, we opened 124 Cafes in 2019, and have been recognized as one of 2019s fastest-growing franchises by Entrepreneur and Nations Restaurant News.

    • 5+ multiple revenue streams with drive-thru, delivery, curbside pickup, online and mobile app ordering
    • $9.47 average ticket per person thanks to our balanced mix of smoothies and food that supports all dayparts
    • 840+ locations coast-to-coastwith 486+ opened in the last 5 yearsfeeds the demand of our loyal customer base
    • 213 new agreements signed in 2019, with 60% coming from existing Franchise Owners
    • Ranked one of the best by the best. Entrepreneur #18 Franchise 500 , Franchise Times #17 Fast & Serious Smartest-Growing Brands , Franchise Business Review Top 40 Franchises by Franchisees

    Tropical Smoothie Caf Terminated/reaquired 67 Franchises Between 2008

    Tropical Smoothie Café featured at The West Coast Franchise Expo

    The relatively high franchise termination rate of Tropical Smoothie Café is a franchise red flag.

    Tropical Smoothie Café Franchises 2008-2011
    Franchises open January 2008:
    18%
    Sources: Tropical Smoothie Franchise Disclosure Documents

    At the start of 2008, there were 244 US Tropical Smoothie franchises. From 2008 through 2011, an additional 124 franchises opened for a total of 368 franchises. During the same time 67 franchises were either terminated or reacquired by the franchisor. At the beginning of 2012, there were 301 Tropical Smoothie franchises open in the U.S.

    That would come out to a termination/reaquisition percentage of 18%, which could reasonably be called a failure rate. Perhaps the company can clarify.

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    Why Consider Tropical Smoothie Cafe Franchise

    More often than not, prospective franchisees want to find out what a franchise opportunity holds before making a decision.

    For the Tropical Smoothie Cafe franchise, there are several. These range from its opportunity, demand, its menu offerings as well as its ease of operation.

    Lets focus on each of these, shall we?

    Things You Need To Know About The Tropical Smoothie Cafe Franchise

    Signs More Than 200 Franchise Agreements and Opens 124 Cafes in 2019

    1. Tropical Smoothie Cafe kicked off 2020 by announcing the companys significant achievements in 2019, reporting its eighth consecutive year of same-store sales growth. During 2019, the brand opened 124 cafes in key markets throughout the U.S. such as Dallas-Fort Worth, Tampa, and Chicago and signed 213 franchise agreements, with more than 60% of those agreements coming from its existing franchisees.

    2. As a result of its rapid expansion and success achieved, Tropical Smoothie Cafe was recognized as one of Fast Casuals Top 100 Movers and Shakers, Nations Restaurant News Top 200 and Top 10 Fastest Growing Chains, Franchise Times Fast and Serious, as well as Entrepreneurs Best Franchises for Any Budget, in 2019.

    4. The brands aggressive growth goals for the Midwest and Western United States resulted in major milestones: the brand opened its 750th cafe in Sugar Land, Texas and its 800th cafe in Arlington Heights, Illinois. These expansion efforts have been followed by the signing of several multi-unit franchise agreements in various markets throughout the two regions.

    Aims to Donate 100,000 Smoothies to Local Healthcare Workers and First Responders

    Launches 1 Million Smoothie Giveaway Nationwide

    Company History

    Entrepreneurs Franchise 500

    18. Tropical Smoothie Cafe ranked No. 18 on Entrepreneurs 2020 Franchise 500 list.

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    How Much Does A Smoothie King Owner Make

    Smoothie King franchisees earned a collective $593,329 in sales over the past year, or 75% of total franchisee sales. This figure represents how much initial investment is estimated. With the purchase price of a Smoothie King franchise being as high as $858,000, starting a location requires less capital.

    How To Open A Tropical Smoothie Cafe Franchise

    FAQs
  • Ensure you have adequate capitalization. In order to open a Tropical Smoothie Cafe franchise, you must have a net worth of more than $222,000.
  • Appreciate the investment required for a cafe franchise. You will need to consider building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
  • Evaluate your prior experience and strengths. You should thoroughly evaluate your prior business experience before applying to become a Tropical Smoothie Cafe franchise owner.
  • Assess market availability. You will want to look at the market availability for Tropical Smoothie Cafe franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
  • Submit your application. Your application will be reviewed by the Tropical Smoothie Cafe franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.
  • Receive approval & opening your Tropical Smoothie Cafe franchise. You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
  • Request Free Info

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    What Does Tropical Smoothie Use As A Base

    For Tropical, thats usually either banana or yogurt, Scroggin said. For Flashback, frozen yogurt or sherbet gives the smoothies a creaminess that pushes them a little toward the milkshake category. At the Juice Shop, every smoothie contains frozen yogurt or sherbet and all but two of the smoothies contain banana.

    How Much Do Franchise Owners Make A Year

    This is the initial investment. You earn more as a franchisee if your business is affiliated with a brand and industry you are familiar with. In the restaurant industry, franchise owners earn an average of $82,000 per year, which is a pretty good salary considering that nonfranchise restaurant owners can earn anywhere from $24,000 to $155,000 per year.

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