Tropical Juice Bar
Bottom line
- Total investment $195K – $400K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $703K/year (median $847K).
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Tropical Juice Bar unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tropical Juice Bar units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$985K
on $4.9M purchase
Total debt
$3.9M
SBA $2.5M + senior + seller note
Overview
About
Franchisees operate retail juice and smoothie bar locations, managing daily operations including fresh juice blending, customer service, inventory management, and staff scheduling. The model typically involves counter-service retail with potential for wholesale or delivery channels, operating within a protected territory with brand standardization and franchisor support.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tropical Juice Bar is an early-stage, unproven franchise system with minimal units, no disclosed profitability metrics, and financial stability concerns—unsuitable for risk-averse investors without direct franchisee validation.
Score breakdown · what drove the 67 / 100 rating
- 01MINOROnly 5 units in system with unknown growth trajectory suggests minimal scale and unproven replicability
- 02MEDNo average net income disclosed (Item 19 missing) — impossible to validate 703k revenue translates to actual profit after 6% royalties, COGS, and labor
- 03HIGHGoing Concern flag is FALSE, indicating potential financial instability or startup-phase franchisor
- 04MINORHigh investment range ($195k-$400k) with no profitability data creates significant downside risk
- 05MINORTiny unit count limits franchisor support infrastructure and vendor negotiating power for franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
FDD download
Tropical Juice Bar · FDD (2022) PDF