Tropical Smoothie Cafe Franchise Profit

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Average Net Revenues In 2021

Tropical Smoothie Franchise Cost Exposed

Top 10%

  • Number That Attained or Surpassed Stated Result in Category : 28
  • Percent That Attained or Surpassed Stated Result in Category : 36%
  • Lowest Net Revenues: $1,444,805
  • Number That Attained or Surpassed Stated Result in Category : 68
  • Percent That Attained or Surpassed Stated Result in Category : 35%
  • Lowest Net Revenues: $1,207,610
  • Number That Attained or Surpassed Stated Result in Category : 151
  • Percent That Attained or Surpassed Stated Result in Category : 39%
  • Lowest Net Revenues: $962,000
  • Number That Attained or Surpassed Stated Result in Category : 243
  • Percent That Attained or Surpassed Stated Result in Category : 42%
  • Lowest Net Revenues: $750,973
  • Number That Attained or Surpassed Stated Result in Category : 348
  • Percent That Attained or Surpassed Stated Result in Category : 45%
  • Lowest Net Revenues: $351,400
  • Number That Attained or Surpassed Stated Result in Category : 47
  • Percent That Attained or Surpassed Stated Result in Category : 61%
  • Lowest Net Revenues: $351,400
  • Number That Attained or Surpassed Stated Result in Category : 108
  • Percent That Attained or Surpassed Stated Result in Category : 56%
  • Lowest Net Revenues: $351,400
  • Number That Attained or Surpassed Stated Result in Category : 214
  • Percent That Attained or Surpassed Stated Result in Category : 56%
  • Lowest Net Revenues: $351,400
  • Number That Attained or Surpassed Stated Result in Category : 286
  • Percent That Attained or Surpassed Stated Result in Category : 50%
  • Lowest Net Revenues: $351,400

Tropical Smoothie Caf Terminated/reaquired 67 Franchises Between 2008

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.

Smooth Riding Out Of Here

With all of the benefits that you receive as a franchise owner for Tropical Smoothie Cafe, its easy to see why so many have been choosing this business. Its also to see why the growth has been on a steady incline.

Franchising a business, or even making the decision to start researching a franchise, can be quite overwhelming.

But it doesnt have to be.

Once you have the major details on a companys franchise opportunity and their history, its pretty easy to see whether or not the experience will be worth it in the long-run. Even if its not entirely possible to predict your future profits.

When it comes to Tropical Smoothie Cafe, you could definitely have a great franchise opportunity here if you should decide to pursue the business. The few perks that they do offer are enough to win over 500 franchise owners over. And maybe it will be enough to win you over as well.

If you have your heart set on the smoothie and healthy food industry, then this company is positively worth it. So, contact the company to get the full franchising details and get started on owning your own Tropical Smoothie Cafe!

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Tropical Smoothie Cafe Franchise Opportunities

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.

How Much Do Franchise Owners Make A Year

I Always Wanted to Own a Smoothie Franchise

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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Why Work With A Franchise Broker

A good franchise broker can help you to find the right franchise. They provide:

Recommendations based on their assessment of historical financial performance instead of just franchise marketing materials.

Franchise matches based on your goals, strengths, and passions.

Demographic analysis to find franchises that could work in your area.

A portfolio of franchises to meet almost any budget, interest, or goals.

Referrals to other specialists, like franchise lawyers.

Information on financing sources.

The Most Profitable Franchises In 2021

The following 10 franchises are representative of a range of industries, investment amounts, number of locations, and degree of brand recognition. The diversity on this list is indicative that a franchise doesnt necessarily have to be top-tier in order for you to turn a profit. That said, we would be remiss not to include some of the worlds most popular franchises on this list, as well.

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Dippin Dots Franchise For Sale

  • You should save the money for starting the Dippin Dots Franchise For Sale, You will need to around $80,000 to $ 235,00. With initial fee $12,500 plus equipment and initial marketing.
  • You should need to find a location with 800 to 1,200 Sq. ft. space. the space should be in high traffic area with great visibility to passersby.
  • Visite Dippin Dots website at dippindots.com and download Request for Consideration. Fill the form with your personal background and all details about space, investment cost, etc. Finally send form to: 1640 McCracken Blvd, Suite 100, Paducah, KY 42001, Fax: 270-575-6997
  • Wait for application which you forwarded to Dippin Dots headquarter.
  • Finally, get approval of location and insurance for the franchise contract.
  • Read the contract and sign the application, And submit franchise fee with it.
  • Transform the location into Dippin Dots franchise establishment, working with Dippin Dots representative to make sure the establishment confirm to the franchise regulations.
  • What Is A Bahama Mama Smoothie

    Tropical Smoothie Cafe – Franchise Opportunity

    Blended with coconut, strawberries, pineapple, and white chocolate, the Bahama mama smoothie is a refreshing treat. This smoothie is one of THE MOST POPULAR smoothies at the Tropical Smoothie Café. And rightfully so its deliciously refreshing and perfectly balanced! The Bahama mama tropical smoothie is so versatile. You can even have it as a mid-morning or mid-afternoon snack.

    Bahama Mama Tropical SmoothieThis post may contain affiliate links. If you buy something through one of those links, you wont pay any extra penny, but Ill get a small commission that encourages me to deliver more helpful content for you.

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    Tropical Smoothie Cafe Franchise For Sale In North Dallas Metroplex

    Buying this Tropical Smoothie Cafe Franchise for Sale is an instant path to earnings. An owner operator of this business on track for $535,000 in sales will earn $74,500. FINANCING AVAILABLE for buyers with strong credit!Franchise for SaleRestaurant Brokers

    This is a Certified Pre-Owned Restaurant® the highest standard for restaurant listings. It has been reviewed by a Certified Restaurant Broker® and has verifiable Sellers Discretionary Earnings . It has been listed based on the strictest industry standards and if SBA lending is advertised, the business earnings qualify subject to Lenders review & approval.The Business Analysis Tool with the latest profit & loss information is available for immediate review by qualified buyers and has been evaluated based on industry guidelines for expense ratios.The equipment in the store transfers free and clear of any liens subject to UCC Lien search by closing agent. If the space is leased, it is available for assignment, extensions, renewal or new agreement for qualified buyers and if the business is a franchise, it meets the criteria for transfer for assignment of the franchise.The acquisition of a Certified Pre-Owned Restaurant® includes the services of a Certified Restaurant Broker® at no cost to the buyer.

    How Much Does A Tropical Smoothie Cafe Franchise Cost

    The tropical smoothie café is reasonably priced, with a reasonable franchise fee, royalty, and marketing. The cost of the store varies depending on location.

    A new café will cost anywhere between $277,000 and $584,000. The average franchise cost is around $400,000 USD. Franchisees were required to invest a minimum of $350,000, with $125,000 in liquid cash.

    The Tropical Smoothie Cafes franchise fee is $30,000 for a new franchise and $20,000 for additional franchise locations. The brands ongoing royalty is 6% of gross sales, 3% of gross sales for local advertising, and 2% of gross sales for Local Advertising Cooperative Contribution.

    Tropical Smoothie Cafe Franchise Initial and On-going Cost
    Tropical Smoothie Cafes Franchise Fee $30,000 for the first unit $ 20,000 for the second unit
    Tropical Smoothie Cafe Franchise Cost $277,000 $584,000
    50% of Initial Franchise fees

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    Keep These In Mind To Achieve Best Results

    • Allow the frozen fruit to thaw for a good 10 to 15 minutes before blending. If youre in a hurry, you may heat or microwave.
    • For an even and smooth texture, blend the liquids first separately.
    • To thicken the smoothie, add more frozen fruit or fresh fruits instead of ice. Adding excess ice may even make it less flavorful.
    • Avoid using ice unnecessarily because a watery texture will surface after some time. Adding ice will water down the overall flavor and makes the texture go from creamy to icy. Biting on bits of crushed ice is not a pleasant experience for many.

    Does Tropical Smoothie Cafe Provide Financial Assistance To Franchises

    Tropical Smoothie Cafe

    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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    Facts That Nobody Told You About Tropical Smoothie Cafe Franchise

    Tropical Smoothie Cafe is a popular spot for healthy smoothies and snacks in the city. Here are some facts about this cafe

    • The cafe has a wide variety of smoothies, frappes, and snacks to choose from.
    • The cafe has a large seating area with plenty of tables and chairs, as well as a few benches.
    • The Tropical Smoothie Cafe franchise is a great option for those who are looking for a fast and healthy meal.
    • As of 2022, there are over 1190 Tropical Smoothie Cafe locations across the United States and in Canada.
    Tropical Smoothie Cafe Franchise Information
    Industry Type
    1117 Perimeter Center W., #W200Atlanta, GA 30338

    Tropical Smoothie Caf: The Details

    The smoothie business started in 1997 in Atlanta, Georgia. The franchisor is under the name Tropical Smoothie Café LLC with an estimated 900 units. It offers various handcrafted premium smoothies made with select fruits and vegetables blended in the café using its proprietary recipes. Aside from smoothies, the café also sells bowls, flatbreads, specialty sandwiches, and wraps.

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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.

    Is Tropical Smoothie Cafe Franchise Profitable

    Buying A Tropical Smoothie Franchise | Pros and Cons | Might Be Worth The Price

    In the case of Tropical Smoothie café, the profit aspect is a bit different. Tropical Smoothie is a good option for health-conscious people, but not everyone prefers health when it comes to food.

    Their unique concept can only target the group of people who are health conscious and a bunch of people who love Smoothie.

    So, the demand and supply for this Smoothie is short as compared to other food. And the brand is also not so famous at all.

    There are only 1038 outlets in 40 states, out of which only 35% to 40% of outlets are generating an average revenue.

    But still, it has the potential to make a decent amount of profit. However, you must spend a bit more on advertising and marketing. Only then will you get results.

    Otherwise, the franchise has not been recognized as a big brand and nor is it demandable in the market.

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    Juice Bar Soft Opening

    Before your official grand opening, it can be helpful to plan a practice run. A soft opening is a modified opening that gives your team the opportunity to test out the flow of service. You can observe potential hiccups and get a better idea of what processes may need to be improved before the big grand opening. Here are some tips for planning a soft opening of your juice bar:

    • Friends and Family Night Invite friends and family of your staff for a sneak peek opening. Its a good way to ease into things because theres less pressure when you know all the guests.
    • Neighborhood Meetup Send soft opening invites to neighboring businesses and residents. You get to meet all your neighbors and get the word out in your community.
    • Limited Menu For your soft opening, it can be helpful to start with a small limited menu. Instead of offering all juices on your menu, you could showcase three different juices. Its less stressful for your employees when you start small.

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    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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    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.

    Pros and Cons: Should You Start an Independent Smoothie or Juice Bar?

    Tropical Smoothie Cafe Franchise Information

    Smoothie King Franchise Failure Rate

    Tropical Smoothie Cafe is a national fast-casual cafe concept inspiring a healthier lifestyle with more than 850 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.

    Tropical Smoothie Cafe is a fast-casual cafe concept with locations nationwide, offering snack and meal options for any time of the day, including real-fruit smoothies, bowls, wraps, and sandwiches. The company offers an app as well as mobile ordering capabilities.

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    Tropical Smoothie Cafe Franchise Facts

    Total Units
    Subsector Food and Beverage

    Tropical Smoothie opened in Destin, Florida in 1997. Back then the shop only sold smoothies. It wasnt in 1998 in Tallahassee that they became a sit-down café. Wraps and sandwiches were added to the menu in 1999 making Tropical Smoothie Café not just a smoothie stop but an option for people to dine in as well.

    The menu at Tropical Smoothie includes their famous smoothies such as Avocalada, Chia Banana Boost, Sunrise Sunset, and Island Green. They use real fresh fruits in their smoothie although pomegranate, lime, kiwi, coconut, orange, and cranberry juice flavors comes from concentrate. They also use turbinado sugar unless stated otherwise. Splenda is also an option available.

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    Aside from the smoothies, Tropical Smoothie also serves flatbreads that contain grilled chicken and vegetables. There are also wraps with flavors such as Hummus Veggie, Supergreen Ceasar Chicken, and Caribbean Chicken. They also have quesadillas, grilled sandwiches, salads. Breakfast items that come in wraps and sandwiches are also available. They also have a catering service wherein their items can be ordered in a bundle.

    Youll then be given their Franchise Application to complete which is a 4-page document. This document will help Tropical Smoothie get to know you and your background. Your financial capabilities will be asked as well as your management style.

    A detox smoothie.

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