In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a Tropical Smoothie Cafe franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Tropical Smoothie Cafe franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Tropical Smoothie Cafe outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Tropical Smoothie Cafe franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Tropical Smoothie Cafe’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021, 2020, and 2019 average, median, highest, and lowest net revenues, number of stores, and number and percentage of stores that surpassed the average net revenues in the category for the top 10%, top 25%, top 50%, top 75%, bottom 10%, bottom 25%, bottom 50%, bottom 75%, and all franchised traditional Tropical Smoothie Cafe stores that had been open for at least one full year as of the end of the company’s fiscal year

• Section VI – Key ratios, comparables, computations, and analyses for the Tropical Smoothie Cafe franchise opportunity (exclusive content for Platinum subscribers)

Section I – Tropical Smoothie Cafe Franchise Costs

• Tropical Smoothie Cafe franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $15,000 to $30,000
• Professional Fees:  $5,000 to $15,000
• Restaurant Fixtures, Furniture, and Equipment:  $95,000 to $142,000
• Leasehold Improvements:  $140,000 to $259,500
• Signage:  $3,000 to $25,000
• Initial Inventory:  $3,500 to $19,500
• Initial Training Expenses:  $1,000 to $15,000
• Initial Deposits:  $1,500 to $25,500
• Grand Opening Contribution:  $5,000 to $10,000
• Additional Funds (Working Capital) (3 to 6 Months):  $8,000 to $42,500
• Total:  $277,000 to $584,000

Section II – Tropical Smoothie Cafe’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Tropical Smoothie Cafe’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000 ($15,000 for qualified veterans)
• Royalty Fee:  6% of Gross Sales
• National Marketing Fee:  3% of Gross Sales
• Local Advertising Cooperative Contribution:  a minimum of 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Tropical Smoothie Cafe Outlets

Franchised

2019

• Outlets at the Start of the Year:  718
• Outlets at the End of the Year:  833
• Net Change:  +115

2020

• Outlets at the Start of the Year:  833
• Outlets at the End of the Year:  913
• Net Change:  +80

2021

• Outlets at the Start of the Year:  913
• Outlets at the End of the Year:  1,038
• Net Change:  +125

Company-Owned

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – Background Information on the Tropical Smoothie Cafe Franchise

22 Things You Need to Know About the Tropical Smoothie Cafe Franchise

Reaches 1,000 Locations

1.  In mid-September 2021, Tropical Smoothie Cafe reached a major milestone with the opening – in Flower Mound, Texas – of its 1,000th location. At the time of the announcement, the company had signed agreements for an additional 249 future franchised locations, adding to an already extensive pipeline of future commitments.

2.  Charles Watson, CEO of Tropical Smoothie Cafe, LLC, said, “I like to say we’re the biggest brand you’ve never heard of. We’ve been quietly crushing sales and growth records, thanks to our incredible franchisees who have a passion for this brand and want to open more locations across our target markets.”

3.  Franchisee DYNE Hospitality Group, which owns the new Flower Mound location, has 13 other Tropical Smoothie Cafes in Texas and 70 more across Alabama, Arkansas, Florida, Georgia, and Oklahoma. DYNE Hospitality Group opened its first two locations in 2011 and had plans to open 10-12 new cafes in 2021.

4.  Nick Crouch, co-CEO of DYNE Hospitality Group, said, “Since we opened our first location, we’ve seen the enormous potential of this brand, and we’ve wholeheartedly supported the Tropical Smoothie Cafe mission to ‘Inspire Better’ in the communities we serve through our amazing food and smoothies. It’s an honor that we are opening the 1,000th cafe, but what’s even more exciting is the growth and awareness we’re experiencing across the entire system. It’s an extraordinary time to be a Tropical Smoothie Cafe franchisee.”

Appoints New Chief Operations Officer

5.  In mid-September 2021, Tropical Smoothie Cafe promoted former Senior Vice President of Operations Richard Key to chief operations officer, effective immediately. Key has served on the brand’s senior leadership team since joining the company in 2018. In his new role, he will help grow and evolve field support teams and lead internal initiatives that prioritize the Tropical Smoothie Cafe guest experience and franchise profitability.

6.  Charles Watson, CEO of Tropical Smoothie Cafe, LLC, said, “Over the past three years, Richard and his team have provided outstanding support and training for our growing franchisee community during one of the most dynamic times in Tropical Smoothie Cafe history. His experience and leadership have been foundational in our franchisees’ success. This well-deserved promotion will benefit our entire system.”

7.  Key has 20 years of franchise operations experience with brands such as TCBY, Carvel, Moe’s Southwest Grill, and Papa Murphy’s International, where he was a division vice president responsible for field operations and marketing for 800 locations.

8.  Key said, “Our top focus at Tropical Smoothie Cafe is to make sure that we not only provide a best-in-class guest experience, but also equip our franchisees to be the most successful in the industry. Three years ago, I began developing great relationships with our franchise community while implementing systems to support our record-breaking growth. I look forward to expanding my role with key projects and initiatives in the future and as we continue to grow.”

Names New Chief Marketing Officer

9.  In mid-November 2021, Tropical Smoothie Cafe named Deborah von Kutzleben its new chief marketing officer. Von Kutzleben most recently served as vice president of brand strategy, advertising, and menu at Arby’s. Prior to that, she spent 22 years at BBDO Worldwide, where she was executive vice president and senior director for the global advertising powerhouse, leading campaign strategy and execution for many large national brands. At Tropical Smoothie Cafe, she will manage marketing strategy, menu innovation, and brand perception and growth while bringing the brand’s Inspire Better mission to life for guests, as well as franchisees and their team members.

10.  According to Charles Watson, CEO of Tropical Smoothie Cafe, LLC, “Deborah has a strong track record of creating and executing strategies to take brands to the next level, and we believe she can help us elevate Tropical Smoothie Cafe to become a household name. With her purpose-driven approach, she is the right leader to drive guest awareness and connection with the brand as we remain focused on our aggressive growth initiatives.”

11.  Von Kutzleben joins the company as it continues to post great numbers and breaks its own records. The brand recently celebrated its 1,000th-cafe milestone and is currently on a nine-year streak of same-store sales increases. Year to date, it has also exceeded its record-setting number of franchise agreements signed in a single year, with months to go.

12.  Von Kutzleben said, “Tropical Smoothie Cafe is pioneering a new paradigm in healthier eating and community involvement. I look forward to making a positive impact and inspiring better for our franchisees, their crew members, guests and the support center team.”

Caps Off 10th Consecutive Year of Positive Same-Store Sales Growth

13.  Tropical Smoothie Cafe marked its 10th consecutive year of positive same-store sales growth in 2021, along with additional milestones that included opening its 1,000th location, opening more new cafes than any prior year, and introducing its top-selling limited-time smoothie in company history.

14.  In 2021, Tropical Smoothie Cafe reported that same-store sales were up 22% over 2020, with a two-year increase of 29.4% over 2019. Digital sales accounted for 76% of that growth, driven by the brand’s 2021 introduction of customizable online and mobile ordering that added another layer of convenience for guests.

15.  The company also opened 133 new cafes in 2021, a company record. In addition to new openings, Tropical Smoothie Cafe signed the highest number of franchise agreements in its history, with 332 new agreements signed in 2021. More than 70% were signed with existing franchisees.

16.  Charles Watson, CEO of Tropical Smoothie Cafe, LLC, said, “Our franchisees, our field teams and the support center team have worked incredibly hard to make 2021 our best year yet by so many measures, and the brand’s success is a testament to their passion for excellent guest experience and inspiring better in their communities. We are committed to carrying our phenomenal momentum into 2022. We’re not planning on slowing down.”

17.  2021 goes into the books as a smash hit from a product innovation standpoint as well. In Q1, Tropical Smoothie Cafe launched its first shrimp limited-time offering (LTO) that quickly became the most popular food LTO in brand history. The Cajun Shrimp Wrap and the Cajun Shrimp Salad were back on the menu for a limited-time encore performance starting Jan. 19 this year. The brand also introduced two new LTO sides in 2021, Jalapeno Corn and Maple-Kissed Sweet Potatoes, which were so successful that they are now on the permanent menu.

18.  Tropical Smoothie Cafe also crowned a new top-selling LTO smoothie of all time in 2021 when its all-new, cocktail-inspired Mango Berry Cosmo Smoothie topped the former bestseller and fan-favorite Watermelon Mojito Smoothie. The two are now the brand’s top sellers of all time, with 1 in 5 guest orders including at least one of them throughout the LTO’s availability.

Company History

19.  Tropical Smoothie Cafe was founded in 1993 by Eric and Delora Jenrich and David Walker in Destin, Florida. The Jenriches and Walker often made their own smoothies from fresh fruits and vegetables. They began selling their smoothies, which were an immediate hit with customers. The Jenriches and Walker opened their first Tropical Smoothie Cafe location in 1997. Just a year later, Tropical Smoothie Cafe started franchising and the first franchised location opened in Tallahassee, Florida.

20.  In 1999, Tropical Smoothie Cafe expanded its menu and began selling healthy food options such as sandwiches and wraps. Over the next few years, Tropical Smoothie Cafe continued to expand around the United States and by 2006, there were over 200 locations in operation. Also around that time, Tropical Smoothie Cafe standardized its décor across all locations.

21.  In 2012, private equity firm Buckhead Investment Partners (BIP) bought a controlling interest in Tropical Smoothie Cafe. Less than a decade later, Tropical Smoothie Cafe was acquired by private equity firm Levine Leichtman Capital Partners (LLCP) in September 2020. Today, there are Tropical Smoothie Cafe locations all across the U.S.

Entrepreneur’s Franchise 500

22.  Tropical Smoothie Cafe ranked No. 10 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Tropical Smoothie Cafe Franchise (Item 19, 2022 FDD)

• The following tables provide historical sales information for Tropical Smoothie Cafe franchised restaurants (“Restaurants”) that were open at least one full year as of: (a) the calendar year 2021 for 768 Restaurants; (b) the calendar year 2020 for 661 Restaurants; and (c) the calendar year 2019 for 570 Restaurants.

• The tables do not include any financial performance information for any other types of franchises, such as non-traditional locations (i.e., college campus or other captive locations) or seasonal locations, and do not include any franchises of any type that had not been open for at least one year on December 26, 2021, December 27, 2020, and December 29, 2019, respectively.

• The information presented is not a forecast of future potential performance.

• For purposes of the tables below, Net Revenue means all revenue related to the sale of products and performance of services at the Restaurant, whether cash or credit, and regardless of collection in the case of credit, and income of every kind or nature related to the Restaurant, less any discounts. Net Revenue does not include (i) bona fide refunds to customers, (ii) revenues from sales taxes or other add-on taxes collected from customers by you and actually transmitted to the appropriate taxing authority, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of gift cards or similar products (but the redemption of any such card or product will be included in Net Revenue).

• The tables provide the average and median net revenues for the following categories of Restaurants in 2021, 2020, and 2019 on a category and cumulative basis:

• (a) the top 10% revenue producing Restaurants (meaning the average net revenue for the number of Restaurants that are in the top 10% of net revenues for that year);
• (b) the top 25% revenue producing Restaurants (which includes the Restaurants that are in the top 10%);
• (c) the top 50% revenue producing Restaurants (which includes the Restaurants that are in the top 10% and the top 25%);
• (d) the top 75% revenue producing Restaurants (which includes the Restaurants that are in the top 10%, the top 25%, and the top 50%);
• (e) the bottom 10% revenue producing Restaurants (meaning the average net revenue for the number of Restaurants that are in the bottom 10% of net revenue for that year);
• (f) the bottom 25% revenue producing Restaurants (which includes the Restaurants that are in the bottom 10%);
• (g) the bottom 50% revenue producing Restaurants (which includes the Restaurants that are in the bottom 10% and the bottom 25%); and
• (h) the bottom 75% revenue producing Restaurants (which includes the Restaurants that are in the bottom 10%, the bottom 25%, and the bottom 50%).

• The franchisor presents the average net revenue for the year in that category as well as the number and percentage achieving or surpassing the average net revenue in that category alone and cumulative for all Restaurants. For example, 68 of the 192 Restaurants in the top 25% for 2021 (or 35%), 63 of the 166 Restaurants in the top 25% for 2020 (or 38%), and 51 of the 143 Restaurants in the top 25% for 2019 (or 36%) achieved or surpassed that average.

Part 1 – Average Net Revenues in 2021

Top 10%

• Number of Restaurants:  77
• Average Net Revenues:  $1,743,007
• Median Net Revenues:  $1,656,224
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  28
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  36%
• Lowest Net Revenues:  $1,444,805
• Highest Net Revenues:  $2,733,965

Top 25%

• Number of Restaurants:  192
• Average Net Revenues:  $1,491,802
• Median Net Revenues:  $1,392,896
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  68
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  35%
• Lowest Net Revenues:  $1,207,610
• Highest Net Revenues:  $2,733,965

Top 50%

• Number of Restaurants:  384
• Average Net Revenues:  $1,289,351
• Median Net Revenues:  $1,207,310
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  151
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  39%
• Lowest Net Revenues:  $962,000
• Highest Net Revenues:  $2,733,965

Top 75%

• Number of Restaurants:  576
• Average Net Revenues:  $1,142,572
• Median Net Revenues:  $1,089,440
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  243
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  42%
• Lowest Net Revenues:  $750,973
• Highest Net Revenues:  $2,733,965

Total

• Number of Restaurants:  768
• Average Net Revenues:  $1,009,803
• Median Net Revenues:  $961,969
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  348
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  45%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $2,733,965

Bottom 10%

• Number of Restaurants:  77
• Average Net Revenues:  $514,087
• Median Net Revenues:  $532,555
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  47
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  61%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $602,658

Bottom 25%

• Number of Restaurants:  192
• Average Net Revenues:  $611,499
• Median Net Revenues:  $622,526
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  108
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  56%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $750,901

Bottom 50%

• Number of Restaurants:  384
• Average Net Revenues:  $730,256
• Median Net Revenues:  $750,937
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  214
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  56%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $961,938

Bottom 75%

• Number of Restaurants:  576
• Average Net Revenues:  $849,137
• Median Net Revenues:  $845,317
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  286
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  50%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $1,207,010

Total

• Number of Restaurants:  768
• Average Net Revenues:  $1,009,308
• Median Net Revenues:  $961,969
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  348
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  45%
• Lowest Net Revenues:  $351,400
• Highest Net Revenues:  $2,733,965

• As of December 26, 2021, there were 1,038 franchised Restaurants and 1 company-owned Restaurant. Of the 1,038 franchised Restaurants, 906 were franchised Restaurants that had been open for at least 12 months as of December 26, 2021. Of the 906 Restaurants, 29 Restaurants were excluded since they were non-traditional locations. Of the 877 Restaurants, 109 were excluded since they were not open for at least 357 days in 2021. Of the 768 Restaurants referenced in the above table, all reported sufficient financial performance information to be included in this financial performance representation.

Part 2 – Average Net Revenues in 2020

Top 10%

• Number of Restaurants:  66
• Average Net Revenues:  $1,511,049
• Median Net Revenues:  $1,427,557
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  23
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  35%
• Lowest Net Revenues:  $1,247,858
• Highest Net Revenues:  $2,565,824

Top 25%

• Number of Restaurants:  166
• Average Net Revenues:  $1,269,450
• Median Net Revenues:  $1,183,220
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  63
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  38%
• Lowest Net Revenues:  $1,013,971
• Highest Net Revenues:  $2,565,824

Top 50%

• Number of Restaurants:  331
• Average Net Revenues:  $1,081,757
• Median Net Revenues:  $1,013,971
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  122
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  37%
• Lowest Net Revenues:  $783,711
• Highest Net Revenues:  $2,565,824

Top 75%

• Number of Restaurants:  496
• Average Net Revenues:  $950,335
• Median Net Revenues:  $890,972
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  202
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  41%
• Lowest Net Revenues:  $602,452
• Highest Net Revenues:  $2,565,824

Total

• Number of Restaurants:  661
• Average Net Revenues:  $836,218
• Median Net Revenues:  $783,771
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  297
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  45%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $2,565,824

Bottom 10%

• Number of Restaurants:  66
• Average Net Revenues:  $407,479
• Median Net Revenues:  $421,297
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  38
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  58%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $488,125

Bottom 25%

• Number of Restaurants:  165
• Average Net Revenues:  $493,175
• Median Net Revenues:  $504,808
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  94
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  57%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $601,790

Bottom 50%

• Number of Restaurants:  330
• Average Net Revenues:  $589,935
• Median Net Revenues:  $602,121
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  182
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  55%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $783,424

Bottom 75%

• Number of Restaurants:  495
• Average Net Revenues:  $690,932
• Median Net Revenues:  $682,688
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  234
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  47%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $1,013,960

Total

• Number of Restaurants:  661
• Average Net Revenues:  $836,218
• Median Net Revenues:  $783,711
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  297
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  45%
• Lowest Net Revenues:  $228,158
• Highest Net Revenues:  $2,565,824

• As of December 27, 2020, there were 913 franchised Restaurants and 1 company-owned Restaurant. Of the 913 franchised Restaurants, 817 were franchised Restaurants that had been open for at least 12 months as of December 27, 2020. Of the 817 Restaurants, 29 Restaurants were excluded since they were non-traditional locations. Of the 788 Restaurants, 127 were excluded since they were not open for at least 357 days in 2020. Of the 661 Restaurants referenced in the above table, all reported sufficient financial performance information to be included in this financial performance representation.

Part 3 – Average Net Revenues in 2019

Top 10%

• Number of Restaurants:  57
• Average Net Revenues:  $1,332,620
• Median Net Revenues:  $1,247,332
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  20
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  35%
• Lowest Net Revenues:  $1,112,316
• Highest Net Revenues:  $2,337,895

Top 25%

• Number of Restaurants:  143
• Average Net Revenues:  $1,130,375
• Median Net Revenues:  $1,056,795
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  51
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  36%
• Lowest Net Revenues:  $921,313
• Highest Net Revenues:  $2,337,895

Top 50%

• Number of Restaurants:  285
• Average Net Revenues:  $979,338
• Median Net Revenues:  $921,313
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  101
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  35%
• Lowest Net Revenues:  $738,667
• Highest Net Revenues:  $2,337,895

Top 75%

• Number of Restaurants:  427
• Average Net Revenues:  $871,932
• Median Net Revenues:  $827,092
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  175
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  41%
• Lowest Net Revenues:  $581,124
• Highest Net Revenues:  $2,337,895

Total

• Number of Restaurants:  570
• Average Net Revenues:  $768,454
• Median Net Revenues:  $737,847
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  264
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  46%
• Lowest Net Revenues:  $181,865
• Highest Net Revenues:  $2,337,895

Bottom 10%

• Number of Restaurants:  57
• Average Net Revenues:  $367,132
• Median Net Revenues:  $384,557
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  35
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  61%
• Lowest Net Revenues:  $181,865
• Highest Net Revenues:  $447,699

Bottom 25%

• Number of Restaurants:  143
• Average Net Revenues:  $459,465
• Median Net Revenues:  $478,708
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  81
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  57%
• Lowest Net Revenues:  $181,685
• Highest Net Revenues:  $580,356

Bottom 50%

• Number of Restaurants:  285
• Average Net Revenues:  $557,569
• Median Net Revenues:  $580,356
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  160
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  56%
• Lowest Net Revenues:  $181,685
• Highest Net Revenues:  $737,026

Bottom 75%

• Number of Restaurants:  427
• Average Net Revenues:  $647,248
• Median Net Revenues:  $656,241
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  224
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  52%
• Lowest Net Revenues:  $181,685
• Highest Net Revenues:  $920,899

Total

• Number of Restaurants:  570
• Average Net Revenues:  $768,454
• Median Net Revenues:  $737,847
• Number That Attained or Surpassed Stated Result in Category (Cumulative):  264
• Percent That Attained or Surpassed Stated Result in Category (Cumulative):  46%
• Lowest Net Revenues:  $181,685
• Highest Net Revenues:  $2,337,895

• As of December 29, 2019, there were 833 franchised Restaurants and 1 company-owned Restaurant. Of the 833 franchised Restaurants, 706 were franchised Restaurants that had been open for at least 12 months as of December 29, 2019. Of the 706 Restaurants, 38 Restaurants were excluded since they were non-traditional locations. Of the 668 Restaurants, 98 were excluded since they were not open for at least 357 days in 2019. Of the 570 Restaurants referenced in the above table, all reported sufficient financial performance information to be included in this financial performance representation.

• As stated, the sales for each of the Restaurants presented are limited to the sales results for Restaurants that had been open for a full 12 months of operations as of December 26, 2021, December 27, 2020, and December 29, 2019, respectively. Sales during the first year of operations are likely to be significantly less than for those that have been open for a year or more.

• All Tropical Smoothie Cafe Restaurants offer substantially the same products and services to the public. None of the franchised Tropical Smoothie Cafe Restaurants received any services not generally available to other franchisees, and substantially the same services will be offered to new franchisees.

• The franchisor obtained these historical financial results from the information submitted by its franchisees. Neither the franchisor nor an independent certified public accountant has independently audited or verified the information.

• Some Restaurants have sold the amounts shown in the tables. Your individual results may differ. There is no assurance you will sell as much.

Section VI – Tropical Smoothie Cafe Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️