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Tropical Smoothie Cafe
 

Tropical Smoothie Café’s business model is unique as we offer both real fruit smoothies and a variety of fresh, flavorful food….we are two franchises in one! Our initial store development costs are lower because we do not utilize deep fryers, grills or hooding systems (healthier too!) and our balanced business model of 50% Food Sales and 50% Smoothie sales allow us to drive higher gross sales and service all dayparts: breakfast, lunch, dinner, snack times and dessert. In fact, for full year 2011, the top 50% of our Café’s had average gross sales over 600,000*! Get the franchisee solutions, strength and support you need at Tropical Smoothie Café. *Based on Calendar year 2011, 79 of 245 or 32.2% of the Café’s gained or surpassed this sales level. Your results may differ. There is now assurance you will do as well. Offer made by prospectus only.

Franchisor Background

Year Established:

  1997

Franchising Since:

  1998

IFA Member



Operating Units:

Franchised Units:325 100%  
Company-Owned Units:0 0%  
 ______ _____  
Total Operating Units:325 100%  
 

Geographic Distribution:

U.S.:325 100% In 38 States
Canada:0 0% In 0 Canadian Provinces
International:0 0% In 0 Foreign Countries
 ______ _____  
Total:325 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. Florida110
2. Virginia75
3. Nevada20

Registered in Following Registration States:

   California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:

Minimum Net Worth:$300K
Cash Investment:$100-125K
Total Investment:$165-398K
Average Total Investment:$300K
 

Fees:

Initial Franchise Fee:$25K
Average Franchise Fee:$25K
On-Going Royalty:6%
Average Royalty:6%
Advertising Fee:3%

Average Number of Employees:

   1 Full-time, 10-12 Part-time

Space Needs (in square footage):

   1,200

Preferred Sites:

   Free-standing Building, Strip Center, Regional Mall

Other Sites:

   Free-Standing w/ Drive Thru, End Cap w/ Drive-Thru

Encourage Conversions?

   Yes

Earnings Claims Provided?

   Yes

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:No
Franchisee Association/Member:No
Size of Corporate Staff:25
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?Yes, Direct
 

Marketing Support:

Co-Op Advertising:Yes
National Advertising:No
Regional Advertising:No
Local Advertising:No
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Included in Fees
Central Purchasing:Included in Fees
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Included in Fees
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. Corporate Office1 Week
2. Local Stores2 Weeks
3. Store Opening1 Week
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:2
General Business Experience:1
Specific Industry Experience:3
Formal Education:2
Psychological Profile:3
Personal Interview(s):3

Minority Representation

Units Owned by Minorities:

African-American:5%
Asian-American:10%
Hispanic:2%
Native American:N/A
Other:N/A
Specific Minority:Although we strongly support the objectives of the NMFI, we do not yet have any specific programs in place at this time.

Terms of Contract

Term of Initial Contract:15 Year(s)
Term of Renewal Period:10 Year(s)
Passive Ownership:Allowed, But Discouraged
Area Development Agreements?No
Sub-Franchising Contracts?Yes
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

   55
U.S.:Yes, All United States
Canada:Yes
Overseas:Yes
 
 
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