Tropical Smoothie CafeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tropical Smoothie Cafe franchise requires a total initial investment of $341K – $815K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.0M[2]. SBA 7(a) loans show a 11.2% charge-off rate across 653 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $341K – $815K
- 22nd pct Service Resta…
- Avg gross sales
- $1.0M
- 10th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 1,515
- 48th pct Service Resta…
- SBA default
- 11.2%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 1514 to 1197 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $341K – $815K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.0M/year (median $955K).
- Verdict A (Top Quintile) with a risk score of 45/100. SBA loan charge-off rate of 11.2% across 653 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TSC Franchisor, LLC
- Parent company
- TSC SPV Funding, LLC
- Ultimate parent
- Blackstone, Inc.
- Predecessor
- Tropical Smoothie Cafe
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 1117 Perimeter Center West, Suite W200, Atlanta, Georgia 30338
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $33.3M
- Most recent fiscal year
Affiliated brands
- of Servpro
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Tropical Smoothie Cafe franchisees operate quick-service smoothie and café shops, managing daily operations including customer service, inventory management, staff scheduling, and food preparation. Core offerings include custom smoothies, acai bowls, wraps, and salads, with emphasis on health-focused positioning and high-margin beverage sales.
- CEO
- Christopher Maxwell Wetzel
- Headquarters
- GA
- Founded
- 1997
- FDD year
- 2025
- States available
- 45
FDD Item 7 · 2025 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $18K | $35K | |
| Professional Fees | $9K | $19K | |
| Restaurant Fixtures, Furniture and Equipment (including POS/cash register system)not refundable | $142K | $175K | |
| Leasehold Improvements | $145K | $426K | |
| Signage | $6K | $23K | |
| Initial Inventory | $7K | $21K | |
| Initial Training Expenses | $500 | $20K | |
| Initial Deposits | $250 | $31K | |
| Grand Opening Contribution | $5K | $10K | |
| Additional Funds (Working Capital) (3 to 6 months) | $10K | $57K | |
| Total initial investment | $341K | $815K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$70K
7.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $341K – $815K
- Better than avg vs category
- Liquid capital req'd
- $10K – $57K
- Better than avg vs category
- Franchise fee
- $15K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $179 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Inventory (initial) | $6K – $15K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $1.0M
- Per unit, per year
- Median gross sales
- $955K
- Item 19 type
- net_sales
- Sample size
- 1268 units
- vs category median 13 · large
- Range (low → high)
- $288K→$2.6M
- Cohort dispersion (min → max)
- Quartile band
- $613K→$1.5M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Tropical Smoothie Cafe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,515
- Opened
- 161
- Last reporting year
- Closed
- 18
- Turnover rate
- 1.2%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +10.4%
- Net unit change last year
- 3-yr CAGR
- +26.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 174
- Closed (3yr)
- 3
- Terminated (3yr)
- 4
- Transfers (3yr)
- 79
- Transfer rate
- 5.2%
- Owners selling to other franchisees
- Termination rate
- 0.3%
- Franchisor-initiated terminations
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 653
- Loan volume
- $224.2M
- Median loan
- $397K
- 50th percentile
- Charge-off rate
- 11.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 98.2%
- 5-yr charge-off
- 1.1%
- Loans approved 2021+
- Active lenders
- 159
- Defaults
- 40
Vintage analysis
Tropical Smoothie Cafe charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Tropical Smoothie Cafe's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tropical Smoothie Cafe presents CAUTION-level risk due to missing financial disclosure (Item 19), prior litigation over earnings claims, unclear profitability, and moderate unit growth in a competitive segment.
Litigation (Item 3)
JSG Management Co. v. Tropical Smoothie Café, LLC (Case No. 01-16-0001-4215), American Arbitration Association in Atlanta, Georgia, filed April 18, 2016. Former single-unit franchisee alleged breach of franchise agreement and fraudulent financial performance misrepresentations regarding 2009 breakfast initiative. Franchisor asserted counterclaim for unauthorized early closure and breach of post-termination obligations. Settled November 22, 2016 for $62,500 with no admission of liability by Tropical Smoothie Café, LLC.
Largest disclosed settlement: $62,500
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; B. Obtained a discharge of its debts under the bankruptcy code; or C. Was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a di
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — unable to verify the $1.005M average revenue claim or validate ROI potential
- 02HIGHLitigation history involving fraudulent financial performance misrepresentations regarding a breakfast initiative suggests franchisor made unsubstantiated claims to franchisees
- 03MINORHigh initial investment range ($340K–$814K) with 6% royalty creates significant break-even threshold; profitability unclear without net income disclosure
- 04MINOR10.4% YoY unit growth is modest for QSR segment; slower growth may indicate market saturation or franchisee struggles
- 05MED15-year term with $35K franchise fee and 6% royalty locks franchisees into long-term relationship with limited exit flexibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 1 |
View Item 3 litigation summary
JSG Management Co. v. Tropical Smoothie Café, LLC (Case No. 01-16-0001-4215), American Arbitration Association in Atlanta, Georgia, filed April 18, 2016. Former single-unit franchisee alleged breach of franchise agreement and fraudulent financial performance misrepresentations regarding 2009 breakfast initiative. Franchisor asserted counterclaim for unauthorized early closure and breach of post-termination obligations. Settled November 22, 2016 for $62,500 with no admission of liability by Tropical Smoothie Café, LLC.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 210 hrs
- Training location
- On-site and corporate
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee
- POS system
- Designated hardware-as-a-service and software-as-a-service POS programs
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated hardware-as-a-service and software-as-a-service POS programs
Item 20 · call current owners
Franchisee Contacts
90 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tropical Smoothie Cafe · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tropical Smoothie Cafe franchise?
The total investment to open a Tropical Smoothie Cafe franchise ranges from $341K – $815K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tropical Smoothie Cafe franchise owners earn?
According to Item 19 of the Tropical Smoothie Cafe FDD, the average gross sales per unit is $1.0M. The median is $955K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Tropical Smoothie Cafe's franchise failure rate?
Based on SBA 7(a) loan data, Tropical Smoothie Cafe has a charge-off rate of 11.2% across 653 loans, meaning 11.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Tropical Smoothie Cafe franchise locations are there?
As of their most recent FDD filing, Tropical Smoothie Cafe has 1,515 total units in the United States, including 1,514 franchised units and 1 company-owned units. 161 new units were opened in the latest reporting year.
Is Tropical Smoothie Cafe a good franchise to buy?
FranchiseVerdict rates Tropical Smoothie Cafe as a A-grade franchise with a risk score of 45 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.