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Tropical Smoothie Cafe Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsGAFranchising since 2012
AStrongest tierStrongest tier86/100Editorial grade from public filings; not investment advice.
Investment
$341K – $815K
Disclosed sales
$1.0M
gross sales, not profit
SBA charge-off
11.2%
on 653 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02794FDD 2025Data QualityExcellent95%
Manager-run OKYes: Protected territory

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Tropical Smoothie Cafe is a fast-casual franchise pairing made-to-order smoothies with wraps, sandwiches, and bowls under a health-forward positioning. Franchisees run cafes managing food and beverage prep, staffing, and high-margin smoothie sales.

FranchiseVerdict summary · 2026

A Tropical Smoothie Cafe franchise requires a total initial investment of $341K – $815K, including a $15K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$341K – $815K
56th pct Service Resta…
Avg gross sales
$1.0M
Net sales19th pct Service Resta…
Royalty
6.0%
48th pct Service Resta…
Units
1,515
94th pct Service Resta…
SBA charge-off
11.2%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Quick-Service Restaurants · color = vs category peers

Total Investment
$341K – $815K
Median $486K
above median ↑, worse than category
Franchise Fee
$15K – $35K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$10K – $57K
Median $33K
near median
Avg Revenue
$1.0M
Median $975K
near median
Net sales
Royalty Rate
6.0%
Median 5.5%
near median
Ongoing Fees
11.0% of rev
Median 7.5%
above median ↑, worse than category
SBA Charge-Off Rate
11.2%
653 loans · Median 14.3%
below median ↓, better than category
System Size
1,515 units
Median 18 units
above median ↑, better than category
Turnover Rate
1.2%
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Optional
Can hire a manager
Litigation
1 case
Some history

Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $341K – $815K including a $35K franchise fee, 6.0% ongoing royalty.
  • RETURNSAverage unit revenue of $1.0M/year (median $955K).
  • RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 11.2% across 653 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHPositive: net +143 franchised outlets in the latest year (161 opened, 18 closed) (Item 20).
  • GROWTHSystem growing at 26.5% CAGR over 3 years with 1515 total units. Strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
TSC Franchisor, LLC
Parent company
TSC SPV Funding, LLC / TSC SPV Guarantor, LLC / Peach TopCo LP
FDD Item 1, page 9 of the 2025 FDD
Ultimate parent
Blackstone Inc. (via investment funds managed by affiliates)
FDD Item 1, page 9 of the 2025 FDD
Predecessor
Tropical Smoothie Cafe, LLC
Prior franchisor entity
CEO title
Chief Executive Officer
Christopher Maxwell Wetzel
Incorporated in
Delaware
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).

Same owner · FDD Item 1, page 9

Portfolio: Blackstone (private-equity sponsor)

Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Christopher Maxwell Wetzel
Headquarters
GA
Founded
2012
FDD year
2025
States available
45

Can you afford it, and what does the money buy?

Entry cost runs 19% above the typical quick-service restaurants franchise.

Total investment (Item 7)$341K – $815KCited, not corroborated — printed on page 25 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$35,000Verified — printed on page 17 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty6.0%Cited, not corroborated — printed on page 18 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Ad fund5.0%Cited, not corroborated — printed on page 18 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$10K – $57K

Source: FDD 2025 · Items 5–7

Full Item 7 breakdown10 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
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.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$341K – $815K
Middle of category vs category
Liquid capital req'd
$10K – $57K
Top 40% of category vs category
Franchise fee
$15K – $35K
Middle of category vs category
Royalty
6.0%
typical 6–8%
Ad fund
5.0%
typical 3–5%
Total fee load
11.0%
vs 9–13% typical

Ongoing fees · Item 6

Tropical Smoothie Cafe: Item 6 recurring fees
FeeAmount
Royalty6.0% of gross sales
Marketing / ad fund5.0% of gross sales
Technology fee$179
Transfer fee$10K
Renewal fee$0
Inventory (initial)$6K – $15K
Total fee load11.0% of rev

What do units actually make?

Average unit sales land near the quick-service restaurants norm.

Avg gross sales$1.0M

Reported as net sales, not gross sales

Cited, not corroborated — printed on page 62 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$955KCited, not corroborated — printed on page 62 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typesegmented cohorts (top/bot…
Sample size1,268 outlets

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Tropical Smoothie Cafe until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$611K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Tropical Smoothie Cafe unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $1,005,063 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $341K–$815K (midpoint used)
FDD reports $10K–$57K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$611K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2025 FDD

Financial Performance

Reported as net sales, not gross sales

Avg gross sales
$1.0M
Per unit, per year
Median gross sales
$955K

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
segmented cohorts (top/bottom percentile bands) by year
Sample size
1,268 outlets
vs category median 19 · large
Range (low → high)
$288K→$2.6MCited, not corroborated — printed on page 62 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Quartile band
$613K→$1.5M
Bottom 25% → top 25%
Reporting year
2024
Fiscal year the figures cover
Source filing
FDD 2025
Disclosed in the 2025 filing, covering 2024
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank19th
Item 19 reporting methods vary across brands
Investment cost rank56th
Lower investment ranks lower (better)
Royalty rate rank48th
Lower royalty = lower percentile (better)
Unit count rank94th
vs Quick-Service Restaurants peers
Risk score rank2th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 152 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $1.0M/year in gross sales. Revenue-to-investment ratio: 1.7x.

Fee burden

Total ongoing fee load of 11.0% — above the Quick-Service Restaurants median of 7.5%.

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System expanding at 26.5% CAGR over 3 years across 1,515 units — operators are staying and new ones are joining.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Quick-Service Restaurants medians

How Tropical Smoothie Cafe Compares

Metric
Tropical Smoothie Cafe
Category median
vs median
Investment
$578K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$1.0M
$975Kmiddle half $664K–$1.4M · n=284
Near median
Unit Count
1,515
18middle half 5–79 · n=755
Above median, better than category

Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units1,515Verified — printed on page 66 of the 2025 FDD (Item 20), and the table's own arithmetic closes on it three ways.
3-yr growth+26.5% (favorable vs category)
Turnover rate1.2% (favorable vs category)

Source: FDD 2025 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
1,515
Opened
161
Last reporting year
Closed
18
Terminated
5
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
1.2%
Company-owned
1
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
+26.5%
Net unit change over 3 years
3-yr CAGR
+26.5%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
5
Not renewed
0
Transferred
79
Reacquired
0
Franchisor bought back
Transfer rate
5.2%
Owners selling to other franchisees
Termination rate
0.3%
Franchisor-initiated terminations
Ceased ops
0.2%
Units that stopped operating
2022
1,197
Franchised units
2023
1,371+174
Franchised units
2024
1,514+143
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 45 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 45 states
No contacts on file

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.

Where the owners are · Item 20 owner list

1,927 current owners across 45 states.

  • FL 260
  • TX 184
  • MI 126
  • VA 124
  • NC 96
  • OH 87
  • GA 82
  • MD 81
  • IL 75
  • NY 66
  • PA 64
  • SC 49
  • +33 more states

Counts only, from the list the franchisor prints in Item 20; 43 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

B
SBA Lending Health
Strong SBA lending record · 11.2% charge-off
Total loans
653
Loan volume
$224.2M
Median loan
$397K
50th percentile
Charge-off rate
11.2%
on 653 loans · 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)
88.8%
5-yr charge-off
1.1%
Loans approved 2021+
Active lenders
159
Defaults
40
Typical loan rate
7.6%
avg rate to borrowers
Franchised industry avg
10.8%
brand above franchise avg ↑
Jobs supported
7,857
5.3 per loan
Lender concentration
11%
top lender's share

Borrower mix: 74% went to startups / new businesses, 26% to established operators

Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.

Vintage analysis

Tropical Smoothie Cafe charge-off rate by loan vintage

BrandNational avg
Tropical Smoothie Cafe charge-off rate by loan vintage. Showing 6 vintages from 2018 to 2023. Rates range from 0.0% to 2.9%.0%5%10%'18'19'20'21'22'23

Top lenders financing Tropical Smoothie Cafe franchisees

Live Oak Banking Company34 loans0.0%
The Huntington National Bank23 loans0.0%
Citizens Bank21 loans10.0%

Showing 3 of 159 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Total loans
5
Loan volume
$2.9M
Charge-off rate
N/A
Jobs created
58

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Tropical Smoothie Cafe from SBA 7(a) FOIA data.

Principal loss rate
0.3%
Avg SBA guarantee
75%
Avg interest rate
7.56%
Avg chargeoff amount
$201K
Lender concentration
10.5%
Job velocity
5.3 per $100K
Startup risk premium
+1.3pp
NAICS benchmark
8.7%
NAICS 722513
Jobs supported
7,857

Top SBA lendersTop lender holds 11% of loans

#LenderLoansVolumeDefault %
1Live Oak Banking Company34$23.1M0.0%
2The Huntington National Bank23$6.9M0.0%
3Citizens Bank21$8.6M10.0%
4United Community Bank16$8.6M0.0%
5SouthState Bank, National Association15$8.0M0.0%
6The Bancorp Bank National Association14$9.1M0.0%
7Stearns Bank National Association12$3.6M11.1%
8KeyBank National Association9$3.5M0.0%
9Gulf Coast Bank8$4.0MN/A
10Valley National Bank7$3.4M0.0%

Geographic failure vector

StateLoansDefaultsRate
TXTexas4415.9%
FLFlorida3800.0%
GAGeorgia2000.0%
NCNorth Carolina2000.0%
PAPennsylvania1600.0%
MDMaryland1500.0%
MIMichigan1500.0%
NYNew York1500.0%
OHOhio1300.0%
SCSouth Carolina1100.0%

SBA 7(a) lending trend

2016
1
2018
32
2019
53
2020
27
2021
65
2022
31
2023
30
2024
27
2025
49
2026
8

Borrower profile

Startup212 (66%)
Ownership change39 (12%)
Existing (2+ yr)33 (10%)
New (< 2 yr)26 (8%)
Unanswered12 (4%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 11.2% — 30% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off11.2% · 653 loans
Verdict score86/100 (higher is better)
Litigation1 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

AStrongest tier86Verdict score 86/100

Large, healthy system: 1,515 units, net worth $1.43B, net income $28.3M, audited, Item 19 disclosed (avg gross sales $1,005,063), growing 26.5%. The single litigation matter (JSG arbitration) was settled in 2016 for $62,500 — routine for a system this size.

High confidence±4 pts
8290

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

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)

None disclosed

Audited financials (Item 21)

Yes · Deloitte & Touche LLP

Franchisor revenue (Item 21)

Yr 1: $33.3MTotal: $104.8MNon-royalty: $17.9M

Franchisor entity revenue (not unit-level)

TSC Franchisor, LLC audited balance sheet/statement of operations covers Sept 6, 2024 (organized) through Dec 29, 2024 only (partial period, first fiscal period as new entity post-Securitization Transaction).

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 86 / 100 verdict

  1. 01MINOROnly 1 old settled arbitration (2016, $62,500) — routine for 1,515 units
  2. 02MINORStrong financials: net worth $1.43B, net income $28.3M
  3. 03MINORClean: no bankruptcy, no going-concern, audited, Item 19 present, +26.5% growth

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 152 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail1 matters · Item 3

Litigation cases

Parent, affiliates and predecessor

Concluded (1)

  • JSG Management Co. v. Tropical Smoothie Café, LLC

    settled

    Brought by a franchisee · Tropical Smoothie Café, LLC (TSC) · filed 2016-04-18 · American Arbitration Association in Atlanta, Georgia · 01-16-0001-4215

    “JSG Management Co. v. Tropical Smoothie Café, LLC, (Case No. 01-16-0001-4215), American Arbitration Association in Atlanta, Georgia, filed April 18, 2016. JSG Management Co. (“JSG”) is a former single-unit franchisee.”Page 16 of the 2025 FDD, Item 3

    Outcome:“The parties agreed to settle the matter on November 22, 2016 for payment of $62,500 by Tropical Smoothie Café, LLC, and no admission of liability on the part of Tropical Smoothie Café, LLC.” (page 17)

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.

Initial term15 yrs
Renewal term10 yrs
TerritoryProtected, not exclusive
Initial training235 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term15 years
Renewal term10 years
Allowed renewalsℹ1
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Territory radius0.5 mi
Online sales rightsℹGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ5 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ2
Curable defaultsℹ4
Mandatory arbitrationNo
Jury trial waiverYes
Governing lawGeorgia
Litigation count1
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
Ongoing training
Optional
Time to open
12 mo
From signing to launch
Site selection
franchisee
Franchisor financing
Not offered
Item 10
POS system
Designated hardware-as-a-service and software-as-a-service POS programs
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Designated hardware-as-a-service and software-as-a-service POS programs

Item 20 · call current owners

Franchisee Contacts

1,970 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 1,970 contacts · $49
Free preview
(803) 802-••••SC
Unlock all 1,970 contacts
(662) 890-••••MS
(614) 432-••••OH
(208) 314-••••ID
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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. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Tropical Smoothie Cafe?

Tropical Smoothie Cafe is franchised by TSC Franchisor, LLC. Its parent company is TSC SPV Funding, LLC / TSC SPV Guarantor, LLC / Peach TopCo LP. The ultimate parent named in the FDD is Blackstone Inc. (via investment funds managed by affiliates). Source: FDD Item 1, 2025 filing.

What is Item 19 in the Tropical Smoothie Cafe FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Tropical Smoothie Cafe FDD and qualifies whose outlets they describe.

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 verdict score of 86 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.