Tropical Smoothie Cafe Franchise Costs, Fees & FDD

Year Business Began: 1997

Franchising Since: 1997

Headquarters: Atlanta, Georgia

Estimated Number of Units: 1,550

Franchise Description: The franchisor is Tropical Smoothie Cafe, LLC. The franchise is for the establishment and operation of a “Tropical Smoothie Cafe” restaurant offering customers a variety of premium, handcrafted smoothies made with select fruit and vegetables blended fresh in the cafe using proprietary recipes, as well as specialty sandwiches, flatbreads, wraps, salads, and bowls.
Training Overview: For the first Tropical Smoothie Cafe restaurant, the initial training is mandatory for franchisees (or, if they are an entity, one owner designated as the “operating principal”) and their approved manager and must be successfully completed within 15 days before opening the franchised business. Initial training consists of approximately one week of classroom training, which may be offered through a virtual training session to accommodate the health and safety of both the franchisees and the trainers. The classroom training is followed by three to four weeks of in-cafe training (three weeks for cafes without a drive-thru and four weeks for cafes with a drive-thru). The franchisor reserves the right to add an additional two weeks of training as a requirement. The franchisor will (in its sole discretion) make available other ongoing continuing education and training programs, meetings, or seminars (on an optional or mandatory basis), that it deems advisable. The franchisor may also host one or more conventions per calendar year, as well as conference telephone calls, which may include education and training. Franchisees and their designated managers must attend and successfully complete all ongoing continuing education and training programs, and must attend all meetings, seminars, conventions, and conference telephone calls, as the franchisor may require.

Territory Granted: The franchisor will grant franchisees a protected area consisting of a geographical area within a one-half mile radius around the site of the Tropical Smoothie Cafe restaurant, provided the franchised business is not at a “reserved facility” (as defined in the FDD). As long as franchisees are in substantial compliance with the Franchise Agreement, the franchisor will not operate or grant to others the right to operate a Tropical Smoothie Cafe restaurant from a location within the protected area. Franchisees cannot offer delivery service without prior approval.

Obligations and Restrictions: Franchisees are not required to participate personally in the direct operation of the business. However, the franchisor recommends that they participate. If franchisees are an entity, they must designate one of their owners as the “operating principal.” The franchised business must be under the direct, on-site supervision of franchisees (or their operating principal) or a manager who has been selected by the franchisee and approved by the franchisor. Franchisees (or their operating principal) and their approved manager must successfully complete the initial training program. Franchisees must offer for sale all menu items, products, foods, beverages, goods, and services that the franchisor requires, in compliance with the franchisor’s standards and specifications.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing and satisfy certain conditions, they may renew for one additional 10-year term.

Financial Assistance: Neither the franchisor nor any of its agents or affiliates offers direct or indirect financing to franchisees, or guarantees any note, lease or obligation. However, the franchisor currently reduces the initial franchise fee for qualified veterans to $17,500 for the first and each subsequent franchised business developed.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$17,500	$35,000
Professional Fees	$8,500	$18,500
Restaurant Fixtures, Furniture and Equipment (including point of sale/cash register system)	$141,500	$174,500
Leasehold Improvements	$145,000	$426,000
Signage	$6,000	$22,500
Initial Inventory	$6,500	$20,500
Initial Training Expenses	$500	$20,000
Initial Deposits	$250	$30,500
Grand Opening Contribution	$5,000	$10,000
Additional Funds (Working Capital) – 3 to 6 months	$10,000	$57,000
ESTIMATED TOTAL*	$340,750	$814,500

*The range given covers estimated costs for end-cap or in-line Tropical Smoothie Cafe restaurants, which include those located in or at “strip style” retail shopping centers but does not include drive-thrus.

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross sales.
National Marketing Fee	5-6% of gross sales.
Back of House Fees	One-time implementation fee of $145, and $179 per month subscription fee.
Online Ordering	Currently, $30 per month.
Interest Charge on Late Payments	The lower of (i) 18% per annum, or (ii) the highest rate permitted by applicable state law.
Late Fee	$25 per week (or portion thereof).
Non-Compliance Fee	Up to $500 each time franchisees default and for each week (or portion thereof) that the default continues.
Reimbursement	The franchisor’s out-of-pocket expenses.
Audit Fee	Cost of audit plus interest on late payment.
Transfer Fee	5% of the total sales price or $10,000, whichever is greater; or, $2,500 upon transfer of minority interest; or $1,500 upon transfer for convenience of ownership.
Management Fee	10% of gross sales for the period in which the franchisor operates the franchised business.
Default Cure	The franchisor’s costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Supplier Approval	Reasonable costs and expenses of inspection and testing currently estimated to range from $500 to $2,000.
Guest Satisfaction	Reimbursement of the franchisor’s costs and expenses.
Indemnification	Will vary under circumstances.
Liquidated Damages	Amount equal to the average royalty fees for the last 12 months (or shorter period, if the franchised business has been in operation less than 12 months), multiplied by the lesser of: (i) 18 or (ii) the number of months remaining in the term.
Costs and Attorneys’ Fees	Will vary under circumstances.
Business Interruption/Loss of Revenue Insurance Proceeds	Will vary under circumstances.
Relocation of Franchised Business	Will vary under circumstances.
Training	Will vary under circumstances.
Remodel Marketing Expense	$3,750
P&L/Financial Data Software Subscription	Currently $50 start-up fee (currently paid by the franchisor); $14.95 monthly subscription (currently paid by the franchisor).
Tax Reimbursement	Will vary under circumstances.
Third Party Inspection Fees	Will vary under circumstances.
Tropical Smoothie Cafe Loyalty Platform and Owned Digital Marketing Programs	$75 per month per cafe.

The above information has been compiled from the FDD of Tropical Smoothie Cafe. Year of FDD: 2025.
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