2026 FDD Issued Apr 17, 2026, amended Jun 10, 2026 Minnesota Commerce (CARDS)
Tropical Smoothie Cafe Franchise Cost (2026)
A Tropical Smoothie Cafe franchise costs an estimated $275,500 – $770,500 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $35,000 initial franchise fee (Item 5) and covers this format: End-Cap or In-Line Location. Item 6 lists royalty fee: 6% of Gross Sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $276K – $771KItem 7 source and qualifications
- Franchise fee
- $35KItem 5 source and terms
- Royalty
- 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 5% of Gross SalesItem 6 conditions and fee bases apply
- Liquid capital
- $500KFranchisor website, checked October 29, 2026 · See conditions
- Net worth
- $1MFranchisor website, checked October 29, 2026 · See conditions
What stands out about Tropical Smoothie Cafe
Leasehold improvements in Item 7 are already reduced by a reported landlord allowance. Deducting an allowance again would understate the project budget; receiving none has the opposite effect. The end-cap and in-line estimate also excludes drive-through additions and planned kiosk equipment, so $275,500 – $770,500 is not a price for every cafe configuration.
The point-of-sale system, which records customer orders and payments, has required hardware and software subscriptions beyond the back-office charges listed in Item 6. Payment terminals, gateway access, the managed firewall and digital-order transactions bring additional obligations in Item 11. Gift-card charges depend on transaction counts and a monthly cap. Neither a sales figure alone nor the royalty plus marketing percentages establishes all technology costs.
Item 19 excludes nontraditional locations and cafes below its operating-days requirement, even among restaurants old enough to qualify. Its Net Revenues definition differs from the Gross Sales base used for royalties. The reported $978,298 therefore describes the selected sales sample, not owner income or an automatically interchangeable fee-calculation input.
The 34 recorded exits in 2025 do not all mean permanently closed premises. Item 20 identifies Arizona and Florida outlets reopened under other franchisees, while some openings represent returning or relocated cafes. Other reopenings were only anticipated when the FDD was issued. Those footnotes matter when interpreting 170 openings and the outlet-movement rate.
What are the initial franchise fees and financial requirements for Tropical Smoothie Cafe?
Item 5 lists an initial franchise fee of $35,000 for Tropical Smoothie Cafe. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Tropical Smoothie Cafe states that the liquid assets are part of the net worth. These minimums come from the franchisor’s website, not from the FDD, and can change: Tropical Smoothie Cafe franchise page (checked October 29, 2026).
Item 5 lists $35,000 for the first restaurant, paid in full when signing. Approved additional restaurants have a $25,000 fee. Qualified military veterans under VetFran pay $17,500 for the first and each subsequent restaurant. These fees are nonrefundable. A new developer who has never developed and opened a restaurant also pays a separate $10,000 Grand Opening Contribution when signing; it is included in Item 7, not another amount to add to that total. Unused contribution funds go to the National Marketing Fund rather than being refunded. PDF p. 17.
Source: Tropical Smoothie Cafe 2026 FDD, Item 5, PDF p. 17.
How much does it cost to open a Tropical Smoothie Cafe franchise? (Item 7)
Source: Tropical Smoothie Cafe 2026 FDD, Item 7, PDF p. 26.
Item 7 of Tropical Smoothie Cafe’s 2026 Franchise Disclosure Document estimates the total cost to open one end-cap or in-line location at $275,500 – $770,500. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $17,500 | $35,000 |
| Professional Fees | $4,500 | $30,000 |
| Restaurant Fixtures, Furniture and Equipment | $131,500 | $184,000 |
| Leasehold Improvements | $104,000 | $370,000 |
| Signage | $5,000 | $22,000 |
| Initial Inventory | $5,500 | $17,000 |
| Initial Training Expenses | $500 | $15,000 |
| Initial Deposits | $500 | $35,000 |
| Grand Opening Contribution | $5,000 | $10,000 |
| Additional Funds (Working Capital) (3 months) | $1,500 | $52,500 |
| Total | $275,500 | $770,500 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7's table spans PDF pp. 26-27 and covers end-cap/in-line cafes without a drive-through. The printed $17,500-$35,000 franchise-fee line spans discount eligibility; the ordinary first-cafe fee is $35,000. Lower professional costs assume a former restaurant with reusable plumbing/electrical systems. Leasehold improvements are already net of the $44,000 average landlord tenant-improvement allowance reported for 2025. Do not deduct that allowance again; without it costs are higher. Property purchase is excluded. A drive-through adds an estimated $40,000-$60,000; the FDD does not print a separate all-in drive-through total. Equipment estimates assume leased POS hardware and include initial setup and BOH implementation; purchasing hardware/warranties can cost more, and a possible one-time credit fee is currently $1,500. Planned kiosk hardware/installation of $10,000-$15,000 and monthly software of $200-$300, anticipated for the first quarter of 2027, are expressly excluded; these are estimates, not confirmed current charges. The Grand Opening Contribution is $10,000 paid to the franchisor for a developer who has never developed/opened a cafe, versus at least $5,000 paid directly to vendors by an existing developer; it excludes food/smoothies. Initial training covers attendance expenses, with a possible future certified-cafe program. Additional funds cover an estimated three months and may be insufficient; personal living expenses need separate cash for the first three to six months. PDF pp. 27-30.
What ongoing royalties and fees does Tropical Smoothie Cafe charge? (Item 6)
Source: Tropical Smoothie Cafe 2026 FDD, Item 6, PDF p. 18.
Item 6 of Tropical Smoothie Cafe’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales | Every period | Payable weekly on Gross Sales, not Item 19 Net Revenues. Item 6 includes insurance proceeds and condemnation awards for lost business, gift-card redemptions, delivery and catering. It excludes qualifying refunds, remitted sales taxes, nonordinary used-equipment sales and gift-card sales; payment-provider fees cannot be deducted. PDF pp. 18 and 25. (Item 6, PDF p. 18) |
| National Marketing Fee | 5% of Gross Sales | Every period | Current rate is 5%; the franchisor may increase it to 6%. Payable weekly on Gross Sales. Item 11 permits mandatory advertising cooperatives and allocation of part of this national contribution to them; it expects but does not require separate local spending of 1%-2% of Gross Sales. That expectation is not another mandatory percentage added to the model. PDF pp. 18 and 42-43. (Item 6, PDF p. 18) |
| BOH Implementation Fee | $145 | When it applies | At implementation/opening; Item 7 includes initial BOH implementation in its equipment estimate. Optional accounting/payroll integration can add a separate one-time $450-$2,700 depending on existing or custom integrations. PDF pp. 18 and 25. (Item 6, PDF p. 18) |
| BOH Monthly Subscription | $179 per month | Every period | Mandated back-of-house/back-office system. Item 6 Note 4 allows technology fees to be added, modified or consolidated at service cost plus up to 20%; an increase is limited by cost increases since the prior fee plus an additional 20% of total cost. This is not a fixed annual escalation percentage. PDF pp. 18 and 25. (Item 6, PDF p. 18) |
| Digital Ordering – Website & Mobile Application | $54 per month | Every period | Mandatory service; vendor-price changes may change the fee. $50 per cafe on a transfer; installation is based on the franchisor's vendor prepayment. The separate per-transaction digital-order charge is disclosed in Item 11. Item 6 anticipates a platform transition in 2026 and kiosks/catering changes in 2026-2027, but their restructured/additional fees are not determined. Those plans are not treated as implemented charges. PDF pp. 19, 25-26 and 49. (Item 6, PDF p. 19) |
| Interest Charge on Late Payments | Varies | When it applies | Lower of 18% per annum or the maximum applicable legal rate. (Item 6, PDF p. 19) |
| Late Fee | Varies | When it applies | $25 per week or portion thereof plus actual returned ACH costs, currently $15 per return. (Item 6, PDF p. 19) |
| Non-Compliance Fee | Varies | When it applies | Up to $500 per default and for each week or portion thereof that it continues, if imposed under the stated default conditions. (Item 6, PDF p. 19) |
| Reimbursement | Varies | When it applies | Out-of-pocket expenses for specified third-party obligations paid or owed by the franchisor. (Item 6, PDF p. 20) |
| Audit Fee | Varies | When it applies | Audit cost plus interest where required reports/compliance are missing or an audit finds an understatement of amounts owed of 2% or more. (Item 6, PDF p. 20) |
| Transfer Fee | Varies | When it applies | Greater of 5% of total sale price or $10,000 for a transfer of the business or more than 49% of its equity. A transfer of less than 49% has a $2,500 fee, except qualifying direct-family or guarantor transfers. A 100% transfer solely for ownership convenience has a $1,500 fee under the stated conditions. The table's greater-than/less-than wording does not specify exactly 49%; confirm that boundary rather than infer a fee. PDF p. 20. (Item 6, PDF p. 20) |
| Management Fee | 10% of Gross Sales | When it applies | Only while a franchisor-appointed manager operates the business following the specified death/disability, asset-purchase or health/safety conditions; more than 90 days requires consent. Not a fee paid by every cafe. PDF p. 20. (Item 6, PDF p. 20) |
| Default Cure | Varies | When it applies | Costs and expenses, including allocated internal costs, plus a 10% administrative fee if the franchisor cures a default. (Item 6, PDF p. 21) |
| Supplier Approval | $500 – $2,000 | When it applies | Estimated reasonable inspection/testing costs for a proposed product, service or supplier. (Item 6, PDF p. 21) |
| Guest Satisfaction | Varies | When it applies | Reimbursement of designated program costs and expenses, including resolving complaints on the franchisee's behalf where applicable. (Item 6, PDF p. 21) |
| Indemnification | Varies | When it applies | Covered loss or damages under the agreement. (Item 6, PDF p. 21) |
| Liquidated Damages | Varies | When it applies | Average monthly Royalty Fees for the last 12 months (or shorter operating period), multiplied by the lesser of 18 months or remaining term, under the stated termination conditions. (Item 6, PDF p. 21) |
| Costs and Attorneys' Fees | Varies | When it applies | Prevailing-party costs and expenses in a legal proceeding under the agreement. (Item 6, PDF p. 22) |
| Business Interruption/Loss of Revenue Insurance Proceeds | Varies | When it applies | 5% of the applicable insurance proceeds; subject to the repair/rebuild conditions in Item 6. (Item 6, PDF p. 22) |
| Relocation of Franchised Business | Varies | When it applies | Out-of-pocket expenses incurred in assisting relocation. (Item 6, PDF p. 22) |
| Training | Varies | When it applies | Currently no flat fee; the franchisor reserves the right to charge stated training costs. (Item 6, PDF p. 22) |
| Remodel Marketing Expense | $3,750 | When it applies | May be required for a remodel. (Item 6, PDF p. 22) |
| P&L/Financial Data Software Subscription | Varies | When it applies | Currently $8 monthly, paid by the franchisor and not collected from franchisees. Mandatory software; the franchisor may require reimbursement and change the fee. (Item 6, PDF p. 22) |
| Tax Reimbursement | Varies | When it applies | Applicable taxes imposed on the franchisor based on the franchisee's business. (Item 6, PDF p. 23) |
| Third Party Inspection Fees | Varies | When it applies | Failure of an inspection can require a re-inspection at the franchisee's expense; failure again can require a training inspection. Currently $209 for re-inspection and $259 for training inspection, plus applicable travel/living costs for inspections. The franchisor reserves different inspection requirements and fees. PDF pp. 23-24. (Item 6, PDF p. 23) |
| Loyalty Platform and Owned Digital Marketing Programs | $75 per month | Every period | Per cafe for the required loyalty and owned digital marketing programs. (Item 6, PDF p. 24) |
| Gift Card Transaction Fee | Varies | Every period | $0.16 per qualified transaction or $18 per month per cafe, whichever is less. Includes gift-card loading, redemption and balance checks. (Item 6, PDF p. 24) |
| POS Hardware and Software Subscription (Item 11) | Varies | Every period | Required hardware-as-a-service and software-as-a-service subscription: $487.91 per month for the standard equipment configuration or $671.32 for drive-through equipment. Packages can cost more; these are not a minimum/maximum for all cafes. Credit may require annual advance payment. This is additional to Item 7's upfront POS costs. PDF p. 48. (Item 6, PDF p. 48) |
| EMV Payment Terminals and Encryption (Item 11) | Varies | Every period | Required approved payment devices: $30 per month for each terminal plus $2 per month per terminal for encryption/tokenization. The standard configuration requires two terminals; drive-through requires three to four. These are per-terminal charges, not cafe-wide totals. PDF p. 48. (Item 6, PDF p. 48) |
| PCI and Gateway Fees (Item 11) | Varies | Every period | Required $13 per month for each merchant identification number for payment-card compliance and gateway fees. Each business has two merchant identification numbers. The stated rate is not the total for the cafe. PDF p. 48. (Item 6, PDF p. 48) |
| Managed Firewall and Internet (Item 11) | $315 per month | Every period | Required provider's standard firewall, internet, phone service, ongoing support and monitoring. $315 per month excludes taxes and other fees. Extra equipment/services increase the monthly fee; add-ons can also have provider-set installation or activation charges. PDF p. 48. (Item 6, PDF p. 48) |
| Digital Order Transaction Fee (Item 11) | Varies | Every period | Required digital ordering carries a separate $0.032 fee per digital order, including third-party delivery orders, billed monthly to the preferred vendor or franchisor. The rate may change. Other branded-delivery fees are paid to preferred vendors and are not quantified here. PDF p. 49. (Item 6, PDF p. 49) |
| Third-Party Delivery Fees (Item 16) | Varies | When it applies | Participation in designated third-party delivery programs is required. Associated delivery fees depend on service-provider rates, transaction amounts and distance; Item 16 gives no amount. They are transaction-dependent, not a fixed charge paid every period by every owner. PDF p. 57. (Item 6, PDF p. 57) |
| Curbside Location Technology (Item 16) | Varies | When it applies | Only if curbside service is provided: the designated third-party customer-location technology is required, with a fee paid in advance, currently quarterly. The amount and frequency can change with vendor requirements; no amount is disclosed. Curbside service is recommended, not required. PDF p. 57. (Item 6, PDF p. 57) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Tropical Smoothie Cafe startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. Item 11 requires POS, payment-terminal, gateway, firewall and digital-order charges beyond the Item 6 table. Several depend on configuration or transaction counts, and gift-card fees have a monthly cap. Item 19 Net Revenues and Item 6 Gross Sales also have different definitions. Technology fees may change or be consolidated under Item 6 Note 4, and the P&L software fee is currently paid by the franchisor. A sales-only calculation cannot establish all recurring fees. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Tropical Smoothie Cafe franchised outlet history
Source: Tropical Smoothie Cafe 2026 FDD, Item 20, PDF p. 75.
Item 20 Table 3 reports 1,650 franchised outlets at the end of 2025. The company-owned table reports a further 1 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 1,197 | 180 | 6 | 1,371 | — |
| 2024 | 1,371 | 162 | 19 | 1,514 | — |
| 2025 | 1,514 | 170 | 34 | 1,650 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
81 units changed owners in 2025.
National franchised movements are from Table 3 on PDF p. 75, transfers from Table 2 on p. 71, and company-owned endings from Table 4 on p. 76. Terminations/ceased operations are not all permanent physical shutdowns: by issuance, 10 of 13 terminated Arizona outlets had reopened under other franchisees, as had specified Florida outlets. Some opened outlets are reopenings or relocations, and other stated reopenings were still anticipated, not confirmed. Table 4's heading names 2022-2024 but its rows name 2023-2025; the row-year company endings, each 1, are retained and also agree with Table 1. PDF pp. 67-68 and 75-76.
How much do Tropical Smoothie Cafe franchise owners make? (Item 19)
Source: Tropical Smoothie Cafe 2026 FDD, Item 19, PDF p. 64.
Item 19 of the 2026 FDD reports average Net Revenues (Total) of $978,298 (Fiscal year ended December 28, 2025, 1,431 franchised Restaurants aged at least 12 months, excluding nontraditional locations and restaurants open fewer than 357 days (51 of 52 fiscal weeks)). Tropical Smoothie Cafe’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees come out of sales before an owner is paid, so these figures cannot show what an owner earns.
Read the source-review hold before using this figure.
See every Tropical Smoothie Cafe Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Tropical Smoothie Cafe’s Item 19 figures and sample limits.
How long is the Tropical Smoothie Cafe franchise agreement term?
Source: Tropical Smoothie Cafe 2026 FDD, Item 17, PDF p. 57.
The standard Tropical Smoothie Cafe franchise agreement runs 15 years, with renewal terms of 10 years.
Item 17 states a 15-year initial term and one conditional 10-year renewal. Renewal requires good standing, advance written notice, required remodeling/compliance, payment of amounts due, a release and signing the then-current agreement, which can differ materially. No renewal fee is charged. Multi-unit development agreements amend initial-term end dates and site-acquisition/opening deadlines for their development schedule. PDF pp. 57-58 and 62.
How long does it take to open a Tropical Smoothie Cafe franchise? (Item 11)
Source: Tropical Smoothie Cafe 2026 FDD, Item 11, PDF p. 50.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: 12 months.
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Frequently Asked Questions about Tropical Smoothie Cafe
This record has unresolved source-review issues and was published provisionally. Read the specific issues before using these answers.
- What is the initial franchise fee for a Tropical Smoothie Cafe?
- Item 5 lists $35,000 for an ordinary first location. Additional approved cafes and qualified military veterans have separate discount conditions. The Grand Opening Contribution is separate from this fee and is already included in Item 7's startup table.
- How much does it cost to open a Tropical Smoothie Cafe?
- Item 7 lists $275,500 – $770,500 for an end-cap or in-line cafe without a drive-through. Leasehold costs already assume a landlord improvement allowance. Property purchase, drive-through additions and planned kiosk costs are not covered by that printed total; see the investment qualifications.
- What are the ongoing fees for Tropical Smoothie Cafe?
- Item 6 lists a weekly royalty of 6% of Gross Sales and national marketing fee of 5% of Gross Sales on Gross Sales. BOH, digital ordering, loyalty and gift-card charges also apply. Item 11 adds required POS, terminal, gateway, firewall and digital-order charges. Configuration and transaction counts prevent a single sales-only total; the marketing rate may increase.
- How much revenue does a Tropical Smoothie Cafe generate?
- Item 19 reports average Net Revenues of $978,298 for its eligible franchised-restaurant sample, excluding nontraditional locations and restaurants below the stated operating-days requirement. It does not represent every cafe or a new cafe's first year. Revenue is not profit or owner income.
Sources
TSC Franchisor, LLC Franchise Disclosure Document, issued April 17, 2026, as amended June 10, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 17
- Item 6: cited PDF p. 18
- Item 7: cited PDF p. 26
- Item 19: cited PDF p. 64
- Item 20: cited PDF p. 75
- Agreement term (Item 17): cited PDF p. 57
Page references for Tropical Smoothie Cafe use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 28, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- October 9, 2026: Provisional publication approved per owner directive: Owner-directed provisional publication before independent source verification was complete.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued April 17, 2026).
- June 10, 2026: Amendment date recorded for the source FDD.