Business Overview

Unique opportunity! Proven and very profitable multi-store Tropical Smoothie Café network, including Drive-thru locations. These stores are being offered for sale for the 1st time and are a rare find in Michigan! The Cafes are in ideal proximity to each other and easy to manage.

Tropical Smoothie Cafe is one of the fastest growing and Industry Leading Fast-Casual franchise systems in the country. Multi-unit, proven and HIGHLY PROFITABLE, with ~$789K+ in projected EBITDA to a new owner — These stores are ripe for more growth. Financing available on the Businesses with as little as 10-15% down, at a time when FRANdata just named Tropical Smoothie Café the “Most Lender-Friendly Restaurant Franchise” in the U.S.

Tropical Smoothie Cafe was founded in 1997 and the first franchise opened in Tallahassee, FL in 1998. Tropical Smoothie is one of the fastest growing franchises in the U.S., as evidenced by more record-breaking years in 2020 and 2021. Tropical Smoothie Cafe delivered its ninth consecutive year of positive same-store sales. The brand opened its 1000th cafe on September 17th, 2021. This milestone was achieved as the company is experiencing record growth with the opening of 130 new franchised locations in 2021. Tropical Smoothie Cafe also signed agreements for an additional 249 future franchised locations, adding to an already extensive pipeline of future commitments.

This unique fast casual concept is something you will be proud to own, as you provide better-for-you options for people in the community you serve. You can feel good about serving great-tasting and innovative smoothies, bowls, flatbreads, wraps, and sandwiches, including pressed sandwiches. Tropical Smoothie has a balanced mix of food and smoothies, allowing you to capitalize on breakfast, lunch, dinner, dessert, snacks, catering, curbside pick-up, and delivery!

Interested in additional Information?
1) Download or open the Confidentiality Form located in the Attached Documents section below.
2) Complete the Confidentiality Form and return it to us via the email address listed on the bottom of the Confidentiality Form.
3) Upon our receipt of your completed Confidentiality Form, we will contact you and provide you specific data for this business opportunity.

You may also download the Confidentiality Form from our website at www.AtlanticBusinessBrokerage.com, where you can also view similar businesses for sale in your area.

Financial

  • Asking Price: $3,199,000
  • Cash Flow: $789,345
  • Gross Revenue: $4,371,620
  • EBITDA: $789,345
  • FF&E: N/A
  • Inventory: $20,000
  • Inventory Included: N/A
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:90
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

All stores were built to the current Tropical Smoothie Cafe “Beach house” specifications, or have been kept current / refreshed, and exude a relaxed coastal atmosphere designed to enhance the consumer experience. They provide a menu offering that is unique and highly desirable, leading the way as a “Healthier-lifestyle” franchise brand. The owner is proactive in upgrading to new equipment and has kept accurate books and records. There are fantastic leases in place at each store, all with multiple renewal options – occupancy costs as low as 3.6% of sales, contributing to high profit margins.

Is Support & Training Included:

3 weeks of comprehensive training provided by the Franchisor, ensuring you are ready to own these successful Tropical Smoothie Cafe franchises.

Purpose For Selling:

Seller is retiring

Opportunities and Growth:

1) One of the Drive-thru locations has only begun to realize the tremendous sales potential that other Drive-thru TSC’s have recognized across the U.S. 2) Increased Community Involvement - Structured Fundraising nights & partnerships with schools, sports teams, and other organizations, etc. would be very impactful and further increase brand awareness! 3) Huge growth potential with Delivery and Catering: Seller has launched 3rd party delivery and both online and 3rd party sales continue to grow. This will be upside for the Buyer.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was founded in 2015, making the business 7 years old.
The sale doesn't include inventory valued at $20,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell companies. Nevertheless, the real factor vs the one they tell you might be 2 completely different things. For instance, they may say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is very essential that you not count entirely on a vendor's word, yet instead, utilize the seller's answer along with your overall due diligence. This will repaint a much more realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that revenue margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in new clients? Often times, businesses have repeat customers, which create the core of their everyday profits. Specific variables such as new competitors growing up around the location, road construction, and also employee turnover can influence repeat consumers and also negatively influence future revenues. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the higher the possibility to construct a returning customer base. A final thought is the basic area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the regional typical family earnings effect future revenue prospects?