Tropical Smoothie Cafe Franchise Fee

What Is Tropical Smoothie Cafe

Tropical Smoothie Café is known for its healthiest Smoothie. In 1993, it was founded in the Panhandle of Florida.

Tropical Smoothie is a high-cost investment franchise and never offers any kind of financing support. However, they provide a training program to all new franchisees.

For buying a tropical smoothie café franchise, you have to understand the brand culture and model so that you can take care of the foods quality.

This is because the quality of food is the core of the cafe, and they never compromise with it.

When Was Tropical Smoothie Cafe Founded

Tropical Smoothie Cafe started offering franchises in 2012. Tropical Smoothie Cafe was founded 10 years ago in 2012.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

Does Tropical Smoothie Cafe Provide Financial Assistance To Franchises

There is no direct financing available at the tropical smoothie cafe. The company franchisor cannot provide any lease or note obligation for franchisee guarantee. As the company has a relationship with an investor, it can provide third-party franchise loans to cover start-up costs, inventory, equipment, payroll, and accounts receivable. SBA financing may be available to assist with the purchase of a franchise.

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Should You Invest In Tropical Smoothie Caf

Tropical Smoothie Cafe has been seeing rapid franchise location growth with almost 100 new restaurants a year opened in the last three years.

Tropical Smoothie Café is in a new emerging market of healthy food options. However, this market is starting to grow in popularity with other companies such as Juice it Up, Jamba Juice, andSmoothie Kingcapitalizing on the new wave of healthy eating and living.

We strongly recommend you speak to at least 5 Tropical Smoothie franchiseesto better understand the financials .

Think Tropical Smoothie is the right franchise for you, or are you interested in other franchise opportunities in thefood and beverage industry? Check out ourlistingspage on theVetted Bizwebsite for thousands of franchises available for your investment.

Is Tropical Smoothie Cafe Growing Are They Opening More Locations Than They Are Closing

The net unit growth rate for Tropical Smoothie Cafe over the past 3 years is 46%. Over the last year we have data for, Tropical Smoothie Cafe had a net unit growth rate of 10%.

Without a comparison, this number doesnt mean much. Compare how the Tropical Smoothie Cafe growth rate compares to 2,000+ other franchises and Industry franchises like Tropical Smoothie Cafe. More info in the Tropical Smoothie Cafemetrics tab.

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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.

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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Average Net Revenues In 2018

Top 10%

• Number That Attained or Fell Below Stated Result in Category : 310
• Percent That Attained or Fell Below Stated Result in Category : 54%
• Lowest Net Revenues: $176,069
• Highest Net Revenues: $2,377,258

• As of December 30, 2018, there were 718 franchised Restaurants and 1 company-owned Restaurant. Of the 718 franchised Restaurants, 609 were franchised Restaurants that had been open for at least 12 months as of December 30, 2018. Of the 609 Restaurants, 40 Restaurants were excluded since they were non-traditional locations. Of the 569 Restaurants referenced in the table above, all reported sufficient financial performance information to be included in this financial performance representation.

• As stated, the sales for each of the Restaurants presented are limited to the sales results for Restaurants that had been open for a full 12 months of operations as of December 27, 2020, December 29, 2019, and December 30, 2018, respectively. Sales during the first year of operations are likely to be significantly less than for those that have been open for a year or more.

• All Tropical Smoothie Cafe Restaurants offer substantially the same products and services to the public. None of the franchised Tropical Smoothie Cafe Restaurants received any services not generally available to other franchisees, and substantially the same services will be offered to new franchisees.

How Much Is Tropical Smoothie Cafe Worth

The destination is Florida in the U.S. It is worth 500 million dollars. In the United States, Tropical Smoothie Cafe, also known as Tropical Smoothie, or Tropical, is a restaurant franchise. The cafes also offer sandwiches, wraps, salads, flat breads, and bowls, and are working on adding sandwiches in 2018.

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Obligation And Terms Of Agreement

The franchisee or their appointed manager SHOULD oversee the operations of their franchise. The designated manager should complete the mandatory training program.

For the items they can sell at their store, ONLY approved Papa Murphys items are allowed for sale. Plus, franchisees must also ensure that the ingredients, recipes, and other requirements must be followed.

The franchisees initial franchise term is ten years. Should the franchisee wish to expand their ownership of a Papa Murphys restaurant, the franchisor can grant them an additional 5-year term.

Tropical Smoothie Cafe Review

This brands first cafe was opened in 1993 in Florida, and since 1997 they have offered franchise opportunities for investors who want to start a business under the framework of this company. Today, this company is one of the faster-growing brands in the Smoothie Industry, and they make a lot of effort to attract new franchisees.

Tropical Smoothie Cafe is a medium-cost franchise and can be a good franchising opportunity for rookie entrepreneurs who have the necessary investing funds but dont dare to start an independent business venture. To become a candidate for the owner of the Tropical Smoothie Cafe applicant must have a Net Worth of $350,000 and own a Liquid Capital in the amount of a minimum of $125,000.

This franchisors Initial training is very comprehensive, it lasts approximately 250 hours, and primarily it takes place on the already existing franchise, which means that on an opening day franchisee will have the knowledge to run everyday business operations without any significant problems.

It is anticipated that the Return of Investment for this franchised business will be three years because, on average, the Tropical Smoothie Cafe franchises yearly profit is approximately $126,000. Also, the Franchise Agreement has 15 years duration, so the franchisee can plan a long-term future in partnership with this company.

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

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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.

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:

Average Net Revenues In 2019

Top 10%

• Number That Attained or Surpassed Stated Result in Category : 264
• Percent That Attained or Surpassed Stated Result in Category : 46%
• Lowest Net Revenues: $181,685
• Highest Net Revenues: $2,337,895

• As of December 29, 2019, there were 833 franchised Restaurants and 1 company-owned Restaurant. Of the 833 franchised Restaurants, 706 were franchised Restaurants that had been open for at least 12 months as of December 29, 2019. Of the 706 Restaurants, 38 Restaurants were excluded since they were non-traditional locations. Of the 668 Restaurants, 98 were excluded since they were not open for at least 357 days in 2019. Of the 570 Restaurants referenced in the above table, all reported sufficient financial performance information to be included in this financial performance representation.

• As stated, the sales for each of the Restaurants presented are limited to the sales results for Restaurants that had been open for a full 12 months of operations as of December 26, 2021, December 27, 2020, and December 29, 2019, respectively. Sales during the first year of operations are likely to be significantly less than for those that have been open for a year or more.

• All Tropical Smoothie Cafe Restaurants offer substantially the same products and services to the public. None of the franchised Tropical Smoothie Cafe Restaurants received any services not generally available to other franchisees, and substantially the same services will be offered to new franchisees.

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How Much Does Tropical Smoothie Cafe Make A Year

It is estimated that the average tropical smoothie cafe salary in the United States is $24,700 per year or $12 per hour. An hourly rate of 67 dollars. Starting salaries start at $21,450 per year, although experienced workers can earn as much as $40,500. What is 24.700 dollars year is how much per hour? A monthly income of $2,058 w much per year?

Financial Requirements & Ongoing Fees

Heres what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee

$30,000

Definition: The initial fee paid to a franchisor to join their system

What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor’s trademarks, name, and related business systems.

Initial Investment

$277,000 – $584,000

Definition: The total amount necessary to begin operation of the franchise

What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.

Net Worth Requirement

$350,000

Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company

What you need to know: Net worth is the value of a person’s assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.

Cash Requirement

$125,000

Royalty Fee

6%

Ad Royalty Fee

to 6%

Term of Agreement

15 years

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Is The Tropical Smoothie Cafe Franchise Right For You

In order to decide if owning a Tropical Smoothie Cafe outlet is right for you, ask yourself the following:

Are you aware of the Tropical Smoothie Cafe brand culture and business model? Ideal candidates will have years of experience in eating at Tropical Smoothie Cafe and know the ins and outs of the menu.

Do you have business management experience? Foodservice management experience is not necessary, but a thorough background in business management is vital in ensuring long-term success. Remember this is a 15-year business agreement and you want to make sure you have the knowledge to keep your franchise successful.

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Do you have the financial capital necessary to invest in a franchise? Thankfully, Tropical Smoothie Cafe is not as expensive to franchise as other big brand franchisers. It is, however, still a hefty financial investment. Be sure that you have a minimum net worth of $350,000 and $125,000 in liquid assets.

All of this information may look daunting, yet investing in a franchise will benefit you in the long-run. Be sure to ask yourself the previous questions and look at what you can bring to the table as a franchisee. With your new knowledge of Tropical Smoothie Cafe business ownership, you may find that the nutritious health food restaurant fits your wildest dreams. Always be sure to take careful consideration before making your choice.

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What Is The Tropical Smoothie Cafe Franchise Failure Rate

Tropical Smoothie Cafe franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Tropical Smoothie Cafe failure rate over the past 3 years is 7%. Over the last year we have data for, Tropical Smoothie Cafe had a franchise failure rate of 2%.

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.

How Much Does A Tropical Smoothie Cafe Franchise Owner Make

Tropical Smoothie Cafe franchise earnings and revenue can vary significantly from one franchisee to another. The Tropical Smoothie Cafe franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Tropical Smoothie Cafe discloses financials at the unit level. In other words, they show how much Tropical Smoothie Cafe franchisees made in the past. Through analyzing this information available in the metrics tab, it can serve as a good basis to further explore the opportunity or not.

At Vetted Biz, we advise you to speak with 5 to 10 franchisees to understand how much money they are making from the Tropical Smoothie Cafe franchise. Roughly 60% of franchises disclose financials and it makes the process easier when filtering potential franchise opportunities like Tropical Smoothie Cafe. Dont just speak to existing franchisees, call franchisees who have recently left the system and try to find out how much those Tropical Smoothie Cafe owners were making.

Visit the Tropical Smoothie Cafemetrics tab to explore the financials for this business.

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Challenges Of A Tropical Smoothie Cafe Franchise

Business franchises will always have challenges. Here are a few you can expect from Tropical Smoothie.

Hepatitis Outbreak

In 2016, Tropical Smoothie Cafés brand was hit by a hepatitis A outbreak. The outbreak was caused by the strawberries used in the smoothies. Though the CEO back then has already addressed this issue and all strawberries were pulled out, this unfortunate incident has tarnished Tropical Smoothies name and stories about this come up once in a while.

No Global Presence

Tropical Smoothie is huge in the United States. With over 1,000 branches, who wouldnt even know what a Tropical Smoothie is? But even if the brand has a lot of locations and has been around since the 90s, they still havent grown internationally.

Opening the business for franchise internationally can help Tropical Smoothie grow even bigger and can gather a huge revenue.

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