Tropical Smoothie Cafe Franchise FDD, Profits & Costs (2025)
Tropical Smoothie Cafe was founded in 1997 and quickly expanded. Based in Atlanta, Georgia, the brand began franchising the same year. The cafe offers a diverse menu of handcrafted smoothies, sandwiches, flatbreads, wraps, and salads made with fresh ingredients.
Tropical Smoothie Cafe stands out by offering both smoothies and a wide variety of food. Their menu caters to multiple meal times, boosting ticket sales and revenue streams through dine-in, drive-thru, delivery, and catering. The focus on health and wellness appeals to today’s consumers.
Initial Investment
How much does it cost to start a Tropical Smoothie Cafe franchise? It costs on average between $297,000 – $662,000 to start a Tropical Smoothie Cafe franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| INITIAL FRANCHISE FEE | $15,000 to $30,000 |
| PROFESSIONAL FEES | $5,000 to $26,000 |
| RESTAURANT FIXTURES, FURNITURE AND EQUIPMENT | $105,500 to $166,500 |
| LEASEHOLD IMPROVEMENTS | $150,000 to $288,500 |
| SIGNAGE | $5,000 to $22,000 |
| INITIAL INVENTORY | $3,000 to $18,500 |
| INITIAL TRAINING EXPENSES | $1,000 to $18,500 |
| INITIAL DEPOSITS | $1,000 to $22,500 |
| GRAND OPENING CONTRIBUTION | $5,000 to $10,000 |
| ADDITIONAL FUNDS (WORKING CAPITAL) | $6,000 to $59,000 |
| TOTAL | $296,500 to $661,500 |
Average Revenue (AUV)
How much revenue can you make with a Tropical Smoothie Cafe franchise? A Tropical Smoothie Cafe franchised restaurant makes on average $966,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $644,000 yearly revenue for similar healthy franchises. Below are a few Tropical Smoothie Cafe competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Tropical Smoothie Cafe locations are there?
As of the latest data, Tropical Smoothie Cafe operates over 1,450 locations across the United States, with the vast majority being franchise-owned. There is only one company-owned location.
What is the total investment required to open a Tropical Smoothie Cafe franchise?
The total investment required to open a Tropical Smoothie Cafe franchise ranges from $297,000 to $662,000.
What are the ongoing fees for a Tropical Smoothie Cafe franchise?
Tropical Smoothie Cafe franchisees are required to pay an ongoing royalty fee of 6% of gross sales, which contributes to the brand’s continued development, operational support, and franchisee assistance.
Additionally, franchisees must pay a marketing and advertising fee of 3% of gross sales, which funds national and regional marketing efforts, digital advertising, and promotional campaigns to drive customer engagement and brand awareness.
What are the financial requirements to become a Tropical Smoothie Cafe franchisee?
To qualify for a Tropical Smoothie Cafe franchise, candidates need a minimum net worth of $500,000 and at least $200,000 in liquid capital to cover startup and operational costs.
How much can a Tropical Smoothie Cafe franchise owner expect to earn?
The average gross sales for a Tropical Smoothie Cafe franchise are approximately $0.97 million per location. Assuming a 15% operating profit margin, $0.97 million yearly revenue can result in $146,000 EBITDA annually.
Who owns Tropical Smoothie Cafe?
Tropical Smoothie Cafe is owned by Blackstone, a leading global investment firm. The company’s Chief Executive Officer is Max Wetzel, who succeeded Charles Watson in November 2024.
Disclaimer
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