A Tropical Smoothie Cafe franchise costs $275,500 to $770,500 to open under the FDD amended June 10, 2026, including the $35,000 franchise fee; a drive-thru adds about $40,000 to $60,000 (Item 7).
Key takeaways
- The single Item 7 table covers end-cap and in-line cafes in strip centers and totals $275,500 to $770,500, built from costs franchisees reported for 2025 (Tropical Smoothie Cafe FDD, Item 7).
- The food menu shows up in the equipment line: Note 3 lists ovens, a microwave, worktables, freezers and ice wells inside a $131,500 to $184,000 line, and the franchisor’s FAQ says deep fryers and hooding systems were removed.
- Approved suppliers handle about 90% of operating purchases, and the franchisor booked $35,708,959 in supplier rebates in fiscal 2025, about 17% of its revenue, on items such as chicken, tortillas and frozen fruit (Item 8).
- After opening, 6% royalty and 5% national marketing (capped at 6%) come out weekly, and the fixed technology charges in Items 6 and 11 add up to $1,218.91 a month for a standard cafe by our sum.
- The franchisor’s candidate page asks for $1,000,000 net worth including $500,000 liquid and a 3-cafe minimum in most markets; under the multi-unit addendum all fees for those cafes are due at signing.
What does the June 2026 Tropical Smoothie Cafe FDD put on the opening bill?
The amended FDD prints one Item 7 table, for end-cap or in-line cafes in strip shopping centers, and it totals $275,500 to $770,500. Leasehold improvements ($104,000 to $370,000) and fixtures and equipment ($131,500 to $184,000) make up most of both ends. TSC Franchisor, LLC collects $45,000 of the total at signing: the $35,000 fee and the $10,000 Grand Opening Contribution (cover page, Items 5 and 7).
| Item 7 line | Low | High | Paid to | What the note says |
|---|---|---|---|---|
| Initial franchise fee | $17,500 | $35,000 | Franchisor | $17,500 is the VetFran rate; $25,000 for a second and later cafe |
| Professional fees | $4,500 | $30,000 | Architect, attorney, accountant | Low end assumes a former restaurant site that reuses plumbing and electrical |
| Fixtures, furniture and equipment (incl. POS) | $131,500 | $184,000 | Designated equipment vendor | Bought new from designated suppliers before opening |
| Leasehold improvements | $104,000 | $370,000 | Licensed contractor | Net of the $44,000 average tenant improvement allowance reported for 2025 |
| Signage | $5,000 | $22,000 | Suppliers | Before opening |
| Initial inventory | $5,500 | $17,000 | Suppliers | Food, paper products, cleaning supplies, uniforms |
| Initial training expenses | $500 | $15,000 | Travel, food, lodging | Your travel; no training fee is charged today |
| Initial deposits | $500 | $35,000 | Landlord, utilities, insurers, agencies | Security, utility and insurance deposits, licenses |
| Grand Opening Contribution | $5,000 | $10,000 | Franchisor | $10,000 for a first cafe; $5,000 spent directly by existing operators |
| Additional funds, 3 months | $1,500 | $52,500 | Third parties | Payroll, rent, early losses; personal living costs not included |
| Total | $275,500 | $770,500 | Excludes drive-thrus and real estate purchase |
Leasehold improvements ($104,000 to $370,000) and fixtures and equipment ($131,500 to $184,000) are the two largest Item 7 lines. Source: Tropical Smoothie Cafe FDD amended June 10, 2026, Item 7, Minnesota CARDS copy accessed November 3, 2026.
The printed range assumes leased space and no drive-thru, and Note 10 warns of substantially higher costs in New York, Massachusetts, Florida, California, New Jersey and Hawaii. Three adjustments sit outside the printed total:
| Adjustment | Low | High | Inputs | Source |
|---|---|---|---|---|
| Printed Item 7 total | $275,500 | $770,500 | Sum of 10 lines | Item 7 |
| With a drive-thru | $315,500 | $830,500 | Printed total plus about $40,000 to $60,000 | Item 7 table note and Note 4 |
| Leasehold line if the landlord pays no allowance (illustrative) | $148,000 | $414,000 | $104,000 and $370,000 plus the $44,000 average allowance | Item 7 Note 4; our arithmetic |
| Ordering kiosks expected from Q1 2027, outside Item 7 | $10,000 | $15,000 | Hardware and installation, plus $200 to $300 a month in software | Item 7 Note 3; Item 11 |
The fee itself moves: Item 5 reports 2025 initial fees from $1.00 to $35,000 after discounts such as reopening a closed cafe. The franchise costs guide explains how Items 5, 6 and 7 fit together across brands.
Which costs come from running a food kitchen, not just a blender bar?
Item 1 describes a menu of smoothies plus specialty sandwiches, flatbreads, wraps, salads and bowls served at breakfast, lunch and dinner, with a kids menu. That menu puts food equipment into the Item 7 list, food into the opening inventory, a 40-hour food-line week into training and chicken and tortillas onto the Item 8 rebate list. A smoothie-only budget undercounts all four.
| Where in the FDD | Food side of the menu | Smoothie side of the menu | Dollar or hour figure |
|---|---|---|---|
| Item 7 Note 3, equipment | Ovens, microwave, worktables, sinks, freezers, refrigerators, small wares | Blenders, ice machine, mixing bar, ice wells | $131,500 to $184,000, purchased new |
| Item 7 Note 5, inventory | Food and paper products | Covered by the same line | $5,500 to $17,000 |
| Item 11, in-cafe training | Week Two: thawing procedures, food ingredient prep, food line schematic, oven, preparing food | Week One: thawing, fruit prep, supplements, smoothie line schematic, blender and ice machine care | 40 hours each week |
| Item 8, rebate items | Chicken, tortillas, potato chips | Frozen fruit, yogurt, concentrates | $35,708,959 in rebates, fiscal 2025 |
| Item 16, preparation rule | Sandwiches, flatbreads, wraps, salads and bowls sold immediately after preparation | Smoothies under the same rule | Timing rule, no dollar figure |
| Item 1, premises | Seating for about 10 to 40 customers | Same room | About 1,200 to 1,600 square feet |
No fryer and no hood: what the equipment list leaves out
The Note 3 list names ovens and a microwave but no fryer, grill or exhaust hood, and the franchisor’s FAQ says it removed “hard-to-use equipment, like deep fryers and hooding systems” from operations. Item 8 adds that the brand’s layouts are not intended to comply with any federal, state or local code, so you must hire an approved licensed architect to fit the plans to local rules.
Ask the design team for the make and listing of each specified oven, then ask your local building and fire officials, before you sign a lease, whether those units can run without a hood in that jurisdiction. A former restaurant shell with usable plumbing and electrical is what the low end of the $4,500 to $30,000 professional-fee line assumes (Item 7 Note 2).
Three square-footage figures for one cafe
Item 1 says approximately 1,200 to 1,600 square feet, the Item 7 cost basis uses 2025 cafes of 1,200 to 1,900, and the franchisor’s FAQ says 1,200 to 1,800. For contrast, the Smoothie King FDD issued April 8, 2026 expects about 1,200 to 1,400 square feet and an $85,000 to $159,000 equipment line listing one small rapid-cooking oven, detailed in our Smoothie King franchise cost by format.
Who supplies the chicken, tortillas and fruit, and who collects the rebates?
Item 8 says almost every purchase is restricted: about 40% of opening purchases and 90% of operating purchases must come from approved suppliers, while TSC Franchisor, LLC currently sells nothing to franchisees directly. From December 30, 2024 to December 28, 2025 it received $35,708,959 in supplier rebates, about 17% of its total revenues of $207,578,583, tied to franchisee purchases of chicken, tortillas, potato chips, frozen fruit and other items.
| Purchase restriction (Item 8) | Opening the cafe | Operating the cafe |
|---|---|---|
| Must buy from the franchisor or an affiliate | 0% | 0% |
| Must buy from approved suppliers | 40% | 90% |
| Must meet franchisor specifications | 50% | 10% |
The opening column adds to 90% as printed, so roughly a tenth of start-up spending appears unrestricted. Rebates are paid as a percentage of sales or a fixed amount per case or pound, the total includes a $100,000 annual flat fee Tropical Smoothie Cafe, LLC receives from Sysco, and part of the money went to a brand and technology fund in 2025.
Federal rule 16 CFR 436.5(h)(6) is why this figure appears at all: Item 8 must say whether the franchisor “will or may derive revenue or other material consideration” from required purchases. Asking for a supplier outside the list costs an estimated $500 to $2,000 in evaluation fees (Item 6), the franchisor generally answers within 30 days, and there are no purchasing cooperatives. Our study of franchise supplier rebates sets this 17% figure against other Item 8 disclosures.
What leaves your bank account by EFT each week and each month?
The 6% royalty and the 5% National Marketing Fee are both drawn weekly by electronic funds transfer on the prior week’s Gross Sales, so 11% of sales goes out today and up to 12% if the marketing fee rises to its 6% ceiling (Item 6). Flat technology charges sit on top and do not shrink in a slow month: $1,218.91 for a standard cafe by our sum below.
| Fixed monthly charge | Standard cafe | Drive-thru cafe | Where it is disclosed |
|---|---|---|---|
| POS hardware and software subscription | $487.91 | $671.32 | Item 11 |
| Managed firewall, internet and phone | $315.00 | $315.00 | Item 11 |
| Back-of-house (BOH) system | $179.00 | $179.00 | Item 6 ($145 one-time setup) |
| Loyalty platform and owned digital marketing | $75.00 | $75.00 | Item 6 |
| EMV card terminals at $30 plus $2 each | $64.00 (2 terminals) | $96.00 to $128.00 (3 to 4) | Item 11 |
| Digital ordering, website and app | $54.00 | $54.00 | Item 6 |
| Merchant ID fees at $13 each | $26.00 (2 IDs) | $26.00 | Item 11 |
| Gift card fee, $0.16 per transaction, capped | up to $18.00 | up to $18.00 | Item 6 |
| Total by our arithmetic | $1,218.91 | $1,434.32 to $1,466.32 | Items 6 and 11 |
The POS subscription ($487.91) and managed firewall ($315) make up about two thirds of the $1,218.91 in fixed monthly technology charges for a standard cafe. Source: Tropical Smoothie Cafe FDD amended June 10, 2026, Items 6 and 11; sum is our arithmetic.
Over 12 months the standard figure is $14,626.92, before the $0.032 fee on each digital order, third-party delivery fees and the $8.00 MetiRi profit-and-loss software charge the franchisor pays today but may pass on. Item 6 Note 4 lets technology fees rise to the cost of the service plus up to an additional 20%, and Note 5 flags a new digital ordering platform in 2026. Our research on franchise technology requirements shows how these charges compare with other systems.
Gross Sales includes delivery, catering and gift card redemptions, and card processing fees cannot be deducted or surcharged (Item 6 Notes 2 and 3). On termination for cause, liquidated damages equal the average monthly royalty for the last 12 months times the lesser of 18 or the months remaining.
Why does a single cafe usually mean signing for three?
The FDD prices a single-unit agreement, but the franchisor’s candidate page states that “A 3-cafe minimum is required in most markets” and asks for a $1,000,000 net worth that includes $500,000 in liquid assets, plus multi-unit franchise experience. Under the Multi-Unit Development Addendum in Exhibit C, the total of the initial fees for every listed cafe is due in full on the day you sign.
| Three-cafe commitment | Cafe 1 | Cafe 2 | Cafe 3 | Initial fees due at signing |
|---|---|---|---|---|
| Standard fees (Item 5; Exhibit C s.1) | $35,000 | $25,000 | $25,000 | $85,000 |
| VetFran fees (Item 5) | $17,500 | $17,500 | $17,500 | $52,500 |
A first-time operator also pays the $10,000 Grand Opening Contribution on signing a Franchise Agreement (Item 5), and initial fees are non-refundable on receipt. Ask in writing whether that contribution is collected on each agreement signed under the addendum or only on the first cafe, and when each site acquisition and opening deadline falls, because the addendum sets both per cafe.
Item 10 says neither TSC Franchisor, LLC nor its affiliates offer financing. The brand is listed as code S1815 in the SBA Franchise Directory file of October 28, 2026, with a note that the brand’s lease addendum may not be executed when the real estate secures the SBA-guaranteed loan. Our report on area development agreements covers how multi-unit schedules and upfront fees work in other systems.
From signature to grand opening to the first remodel: what happens when?
Item 11 puts the typical gap from signing to opening at 12 months, which is also the contract deadline: you must acquire a site within 6 months and open within one year or the franchisor may terminate. Item 17 lists missing either deadline as a default you cannot cure, so the lease search starts the day the Franchise Agreement is signed.
| Milestone | Deadline or timing | FDD location |
|---|---|---|
| Site decision by franchisor | Within 30 days of a complete site report; silence means rejection | Items 8 and 11 |
| Site acquired | Within 6 months of signing | Item 11 |
| Franchisee orientation | About 2 to 3 months before opening; 7.5 classroom hours | Item 11 |
| Grand opening marketing period | From about 60 days before opening to 30 to 60 days after | Item 7 Note 8 |
| In-cafe training | 2 weeks, or 3 with a drive-thru, completed within 15 days before opening | Item 11 |
| Opening | Within 12 months of signing; at least 5 days of on-site help | Item 11 |
| Report actual build costs | Within 90 days of opening | Item 8 |
| Remodel | On request, no more than once every 5 years; up to $3,750 of remodel marketing | Exhibit B s.6.J; Item 6 |
| Term and renewal | 15 years, then one 10-year renewal with no renewal fee | Item 17 |
Item 11 counts 200 on-the-job training hours, including 80 hours of opening support. The research on how long it takes to open a franchise compares the 12-month gap with other brands’ Item 11 disclosures.
What do Items 19, 20 and 21 tell a buyer about the system?
Item 20 counts 1,650 franchised cafes and 1 company cafe at December 28, 2025, a net gain of 136 franchised cafes in 2025. Openings held near 170 a year, but exits rose: 34 in 2025 (21 terminations, 1 non-renewal and 12 that ceased operating), against 19 in 2024 and 6 in 2023. Another 962 signed agreements had not yet opened.
| Franchised cafes (Item 20) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Open at start of year | 1,197 | 1,371 | 1,514 |
| Opened | 180 | 162 | 170 |
| Terminations | 2 | 5 | 21 |
| Non-renewals | 1 | 0 | 1 |
| Ceased operations, other reasons | 3 | 14 | 12 |
| Open at end of year | 1,371 | 1,514 | 1,650 |
| Transfers to new owners | 77 | 79 | 81 |
Openings stayed between 162 and 180 a year while exits rose from 6 in 2023 to 34 in 2025. Source: Tropical Smoothie Cafe FDD amended June 10, 2026, Item 20 Table 3, accessed November 3, 2026.
Arizona accounts for 13 of the 21 terminations in 2025, and Item 20 footnote 1 says 10 of those 13 cafes had reopened under other franchisees by the issuance date. Item 3 separately describes a 2025 Chapter 11 case in the U.S. Bankruptcy Court for the District of Arizona in which the franchisor consented to the sale of a former franchisee’s cafes.
Item 19 is present: it reports Net Revenue tables (averages, medians and ranges by top and bottom tiers) for 1,431 franchised cafes open the full year 2025, excluding 33 non-traditional sites and 21 cafes open fewer than 357 days. The franchisor states the data is unaudited and includes no costs. This site does not reproduce earnings figures; read Item 19 in the filing itself, set it against the Item 6 percentages and the fixed charges above, and see our study of franchise Item 19 disclosures for how to read such tables.
Because TSC Franchisor, LLC was organized on July 8, 2024 for a securitization, Item 21 carries its audited statements only for fiscal 2025 and the period from September 6, 2024, plus a TSC Parent guaranty that covers the management agreement, not your Franchise Agreement.
Where do other cost guides and the amended FDD disagree?
Most published Tropical Smoothie Cafe cost figures trace back to the 2024 or 2025 FDD, and several have not caught up with the filing amended June 10, 2026 or the franchisor’s current candidate page. We checked the six differences below against the primary document in the right-hand column on November 3, 2026.
| Figure in circulation | What the current primary source says | Source |
|---|---|---|
| A cost guide updated December 2025 headlines $340,750 to $814,500, citing the 2025 FDD | $275,500 to $770,500 for an end-cap or in-line cafe | Item 7, FDD amended June 10, 2026 |
| A 2024 FDD review lists $300,000 to $720,500 | $275,500 to $770,500; the 2024 table is two filings old | Item 7, FDD amended June 10, 2026 |
| Liquid capital $175,000 and net worth $400,000 | $1,000,000 net worth including $500,000 liquid; 3-cafe minimum in most markets | Franchisor candidate page, November 2026 |
| Online ordering at $30 a month | Digital ordering at $54 a month, plus $0.032 per digital order | Items 6 and 11 |
| “10 days of onsite opening support” (franchisor FAQ) | The contract promises at least 5 days on site, and none if you already run a cafe | Item 11 |
| 1,200 to 1,800 square feet (franchisor FAQ) | About 1,200 to 1,600 in Item 1; 1,200 to 1,900 behind the Item 7 costs | Items 1 and 7 |
Which FDD clause should you check first for your site and situation?
The fastest way to price a specific deal is to match your situation to the clause that changes the number. Each row below names a threshold printed in the FDD amended June 10, 2026 or on the franchisor’s candidate page, and the clause to read before you pay for site work, plans or a lease review.
| If your situation is | Then check | What it changes |
|---|---|---|
| The space was a restaurant before | Item 7 Notes 2 and 4 | Low ends of professional fees and leasehold assume reused plumbing, electrical and HVAC |
| The landlord offers no improvement allowance | Item 7 Note 4 | The $104,000 to $370,000 line is net of a $44,000 average allowance, so budget above it |
| The pad has a drive-thru lane | Item 7 table note; Items 11 and 6 | About $40,000 to $60,000 more, 3 weeks of training, $671.32 a month POS and 3 to 4 terminals |
| The site is in an enclosed mall, airport, campus or hospital | Item 12 | A Reserved Facility gets no Protected Area |
| The site is a strip-center end-cap or in-line unit | Item 12 | A Protected Area of a one-half mile radius while you stay in substantial compliance |
| You are a qualified veteran | Item 5 | $17,500 fee for the first and each later cafe |
| You can fund only one cafe | Candidate page; Exhibit C | 3-cafe minimum in most markets; ask whether your market is an exception before any site work |
| The cafe is in NY, MA, FL, CA, NJ or HI | Item 7 Note 10 | Costs may be substantially higher than the printed range |
| You may want to sell within the 15-year term | Items 6 and 17 | Transfer fee of 5% of price or $10,000, whichever is greater; possible remodel as a condition |
The research on franchise territory rights shows how a one-half mile radius compares with other systems, and our guide to the franchise disclosure document explains each of the 23 Items. A franchise consultant can help you put the three-cafe and kiosk questions to the development team in writing. This page is general information, not legal, financial or investment advice; have a franchise attorney and an accountant review the June 10, 2026 FDD and your lease before you sign.
How we compiled this
We read the 438-page Tropical Smoothie Cafe FDD amended June 10, 2026 from Minnesota CARDS, re-added its 10 Item 7 lines and summed the fixed monthly charges in Items 6 and 11. In November 2026 we also checked two franchisor pages, the SBA Franchise Directory file of October 28, 2026, 16 CFR 436.5 and one Smoothie King FDD. Item 19 revenue figures are left out under the site’s no-earnings rule; no building code section is cited because the code publisher’s site blocked us.
Frequently asked questions
How much does it cost to buy into a Tropical Smoothie franchise?
The FDD amended June 10, 2026 estimates $275,500 to $770,500 for an end-cap or in-line cafe, including a $35,000 franchise fee and a $10,000 Grand Opening Contribution paid at signing (Item 7). A drive-thru adds about $40,000 to $60,000, and ordering kiosks expected in 2027 add $10,000 to $15,000 outside that total.
What is the Tropical Smoothie Cafe franchise fee?
Item 5 sets the initial franchise fee at $35,000 for a first cafe and $25,000 for each additional cafe, paid in full when the Franchise Agreement is signed and non-refundable. Qualified veterans pay $17,500 per cafe under the VetFran program, and fees charged in 2025 ranged from $1.00 to $35,000 after discounts.
How much does a Tropical Smoothie franchise owner make?
The FDD does not state owner profit. Item 19 gives Net Revenue tables for 1,431 franchised cafes open all of 2025 and says it includes no costs; we do not reproduce those figures. What an owner keeps depends on sales minus the 6% royalty, 5% marketing fee, about $1,218.91 of monthly technology charges, rent, labor and food costs.
Does a Tropical Smoothie Cafe need a hood or a fryer?
The Item 7 Note 3 equipment list names ovens and a microwave but no fryer, grill or hood, and the franchisor’s FAQ says it removed deep fryers and hooding systems. Whether the specified ovens can run without a hood is a local code question, so confirm it with your building and fire officials before you sign a lease.
Can you open just one Tropical Smoothie Cafe?
The FDD offers a single-unit Franchise Agreement, but the franchisor’s candidate page says a 3-cafe minimum is required in most markets and asks for $1,000,000 net worth including $500,000 liquid. Under the multi-unit addendum, fees for all listed cafes, $85,000 for three at standard rates, are due on the signing date.
Is Tropical Smoothie Cafe eligible for SBA loans?
Yes, the brand appears as code S1815 in the SBA Franchise Directory file dated October 28, 2026, marked as meeting the FTC franchise definition. The listing notes that the brand’s lease addendum may not be executed when the real estate secures the SBA-guaranteed loan. Item 10 says the franchisor offers no financing of its own.
Who owns Tropical Smoothie Cafe?
Investment funds managed by affiliates of Blackstone acquired the Tropical Smoothie Cafe business on June 10, 2024 (Item 1). Since a securitization on September 6, 2024, the franchisor is TSC Franchisor, LLC, and the former franchisor, Tropical Smoothie Cafe, LLC, acts as its manager and franchise sales broker under a management agreement.
Sources
- Tropical Smoothie Cafe Franchise Disclosure Document, issued April 17, 2026, as amended June 10, 2026, TSC Franchisor, LLC via Minnesota Department of Commerce CARDS (document 36853-202606-04), Items 1 to 23 and Exhibits B and C, accessed 2026-11-03.
- Smoothie King Franchise Disclosure Document, issued April 8, 2026, Smoothie King Franchises, Inc. via Minnesota Department of Commerce CARDS, Item 7 Notes 2 and 9, accessed 2026-11-03.
- Tropical Smoothie Cafe franchise FAQs, TSC Franchisor, LLC, accessed 2026-11-03.
- The perfect candidate, TSC Franchisor, LLC, accessed 2026-11-03.
- 16 CFR 436.5, Disclosure items (2026 edition), U.S. Government Publishing Office, accessed 2026-11-03.
- SBA Franchise Directory, October 28, 2026 (xlsx), U.S. Small Business Administration, accessed 2026-11-03.
- A Consumer’s Guide to Buying a Franchise, Federal Trade Commission, accessed 2026-11-03.