The Tropical Smoothie Cafe franchise requires a total investment of $341K – $814K with a 6.0% royalty fee in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Tropical Smoothie Cafe.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $17,500 | $35,000 |
| Legal Accounting | $8,500 | $18,500 |
| Equipment | $141,500 | $174,500 |
| Buildout | $145,000 | $426,000 |
| Signage | $6,000 | $22,500 |
| Inventory | $6,500 | $20,500 |
| Training | $500 | $20,000 |
| Other | $250 | $30,500 |
| Other | $5,000 | $10,000 |
| Working Capital | $10,000 | $57,000 |
| Total | $340,750 | $814,500 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty Fee | 6.0% | PCT | Gross Sales | weekly |
| National Marketing Fee | 5.0% | PCT | Gross Sales | weekly |
| BOH Fees - Implementation | $145 | FIXED | One-time implementation | one_time |
| BOH Fees - Subscription | $179 | FIXED | Monthly subscription | monthly |
| Online Ordering | $30 | FIXED | Monthly | monthly |
| Interest Charge on Late Payments | 18.0% | PCT | Per annum on late payments | monthly |
| Late Fee | $25 | FIXED | Per week or portion thereof | weekly |
| Non-Compliance Fee | $500 | FIXED | Per default event and per week | weekly |
| Reimbursement | N/A | VARIABLE | Out-of-pocket expenses paid by franchisor | one_time |
| Audit Fee | N/A | VARIABLE | Cost of audit plus interest on late payment | one_time |
| Transfer Fee - Majority Interest | 5.0% | PCT | Total sales price | one_time |
| Transfer Fee - Minority Interest | $2,500 | FIXED | Transfer of minority interest | one_time |
| Transfer Fee - Convenience of Ownership | $1,500 | FIXED | Transfer for convenience of ownership | one_time |
| Management Fee | 10.0% | PCT | Gross Sales for the period franchisor operates the business | monthly |
| Default Cure | N/A | VARIABLE | Franchisor's costs and expenses plus 10% administrative fee | one_time |
| Supplier Approval | N/A | VARIABLE | Reasonable costs and expenses of inspection and testing | one_time |
| Guest Satisfaction | N/A | VARIABLE | Reimbursement of franchisor's costs and expenses | one_time |
| Indemnification | N/A | VARIABLE | Loss or damages resulting from franchisee's actions | one_time |
| Liquidated Damages | N/A | VARIABLE | Average Royalty Fees for last 12 months multiplied by lesser of 18 or months remaining in term | one_time |
| Costs and Attorneys' Fees | N/A | VARIABLE | Prevailing party's costs and expenses in legal proceedings | one_time |
| Business Interruption/Loss of Revenue Insurance Proceeds | 5.0% | PCT | Insurance proceeds from business interruption or loss of revenue | one_time |
| Relocation of Franchised Business | N/A | VARIABLE | Out-of-pocket expenses incurred by franchisor | one_time |
| Training | N/A | VARIABLE | Training costs | one_time |
| Remodel Marketing Expense | $3,750 | FIXED | Marketing for any Remodel | one_time |
| P&L/Financial Data Software Subscription - Start-up | $50 | FIXED | One-time start-up | one_time |
| P&L/Financial Data Software Subscription - Monthly | $15 | FIXED | Monthly subscription | monthly |
| Tax Reimbursement | N/A | VARIABLE | Taxes imposed on franchisor related to franchisee's business | one_time |
| Third Party Inspection Fees | N/A | VARIABLE | Third inspection expenses including service fees, travel and living expenses | one_time |
| Tropical Smoothie Cafe® Loyalty Platform and Owned Digital Marketing Programs | $75 | FIXED | Per month per cafe | monthly |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Avg. Net Revenues | $1,737,553 | USD | Top 10% | FY2024 |
| Median Net Revenues | $1,665,606 | USD | Top 10% | FY2024 |
| Avg. Net Revenues | $1,487,407 | USD | Top 25% | FY2024 |
| Median Net Revenues | $1,402,082 | USD | Top 25% | FY2024 |
| Avg. Net Revenues | $1,282,144 | USD | Top 50% | FY2024 |
| Median Net Revenues | $1,199,022 | USD | Top 50% | FY2024 |
| Avg. Net Revenues | $1,138,076 | USD | Top 75% | FY2024 |
| Median Net Revenues | $1,075,990 | USD | Top 75% | FY2024 |
| Avg. Net Revenues | $1,005,063 | USD | All Units | FY2024 |
| Median Net Revenues | $954,743 | USD | All Units | FY2024 |
| Avg. Net Revenues | $516,181 | USD | Bottom 10% | FY2024 |
| Median Net Revenues | $526,032 | USD | Bottom 10% | FY2024 |
| Avg. Net Revenues | $613,046 | USD | Bottom 25% | FY2024 |
| Median Net Revenues | $631,183 | USD | Bottom 25% | FY2024 |
| Avg. Net Revenues | $731,813 | USD | Bottom 50% | FY2024 |
| Median Net Revenues | $737,143 | USD | Bottom 50% | FY2024 |
| Avg. Net Revenues | $845,700 | USD | Bottom 75% | FY2024 |
| Median Net Revenues | $853,345 | USD | Bottom 75% | FY2024 |
| Avg. Net Revenues | $1,673,798 | USD | Top 10% | FY2023 |
| Median Net Revenues | $1,588,799 | USD | Top 10% | FY2023 |
| Avg. Net Revenues | $1,441,232 | USD | Top 25% | FY2023 |
| Median Net Revenues | $1,366,694 | USD | Top 25% | FY2023 |
| Avg. Net Revenues | $1,248,276 | USD | Top 50% | FY2023 |
| Median Net Revenues | $1,180,105 | USD | Top 50% | FY2023 |
| Avg. Net Revenues | $1,108,757 | USD | Top 75% | FY2023 |
| Median Net Revenues | $1,049,408 | USD | Top 75% | FY2023 |
| Avg. Net Revenues | $979,491 | USD | All Units | FY2023 |
| Median Net Revenues | $944,699 | USD | All Units | FY2023 |
| Avg. Net Revenues | $488,807 | USD | Bottom 10% | FY2023 |
| Median Net Revenues | $510,217 | USD | Bottom 10% | FY2023 |
| Avg. Net Revenues | $592,141 | USD | Bottom 25% | FY2023 |
| Median Net Revenues | $603,019 | USD | Bottom 25% | FY2023 |
| Avg. Net Revenues | $710,238 | USD | Bottom 50% | FY2023 |
| Median Net Revenues | $731,860 | USD | Bottom 50% | FY2023 |
| Avg. Net Revenues | $825,399 | USD | Bottom 75% | FY2023 |
| Median Net Revenues | $823,890 | USD | Bottom 75% | FY2023 |
| Avg. Net Revenues | $1,648,079 | USD | Top 10% | FY2022 |
| Median Net Revenues | $1,563,369 | USD | Top 10% | FY2022 |
| Avg. Net Revenues | $1,434,774 | USD | Top 25% | FY2022 |
| Median Net Revenues | $1,361,375 | USD | Top 25% | FY2022 |
| Avg. Net Revenues | $1,254,078 | USD | Top 50% | FY2022 |
| Median Net Revenues | $1,199,440 | USD | Top 50% | FY2022 |
| Avg. Net Revenues | $1,120,867 | USD | Top 75% | FY2022 |
| Median Net Revenues | $1,077,445 | USD | Top 75% | FY2022 |
| Avg. Net Revenues | $992,613 | USD | All Units | FY2022 |
| Median Net Revenues | $966,293 | USD | All Units | FY2022 |
| Avg. Net Revenues | $510,337 | USD | Bottom 10% | FY2022 |
| Median Net Revenues | $533,740 | USD | Bottom 10% | FY2022 |
| Avg. Net Revenues | $608,931 | USD | Bottom 25% | FY2022 |
| Median Net Revenues | $625,699 | USD | Bottom 25% | FY2022 |
| Avg. Net Revenues | $731,149 | USD | Bottom 50% | FY2022 |
| Median Net Revenues | $745,493 | USD | Bottom 50% | FY2022 |
| Avg. Net Revenues | $844,812 | USD | Bottom 75% | FY2022 |
| Median Net Revenues | $848,598 | USD | Bottom 75% | FY2022 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $848,598 | 100% |
| COGS | $-254,579 | 30% |
| Labor | $-237,607 | 28% |
| Occupancy | $-84,860 | 10% |
| Marketing | $-33,944 | 4% |
| Other Costs | $-67,888 | 8% |
| Royalty Fee (franchisor) | $-50,916 | 6.0% |
| Ad Fund Fee (franchisor) | $-42,430 | 5.0% |
| Owner's Profit | $76,374 | 9.0% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
How Tropical Smoothie Cafe compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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