Inks Multi-Unit Franchise Agreements in Target Markets to Drive Aggressive Expansion Plans
Tropical Smoothie Cafe announced yesterday it has awarded 64 franchise agreements in the third quarter alone. The brand expects to sign 200 franchise agreements, open 130 cafes, and grow same-store sales by 5% in 2019. Year to date, Tropical Smoothie Cafe has opened 90 cafes and awarded 179 franchise agreements to drive its development.
Tropical Smoothie Cafe franchisees have signed multi-unit franchise agreements for a number of markets across the country, including Chicago, IL; Tampa, FL; Orlando, FL, Cleveland, OH, and New Haven, CT. The Chicago-area remains a tremendous growth market for the brand, where a total of 36 franchise agreements have been signed since October 2018 with both existing multi-unit and new franchisees. One of these openings, outside of Chicago, was the brand’s 800th location. The franchisee that opened that location plans to develop an additional 17 units in the coming years.
“Our focus on operational execution and delivering a remarkable guest experience have been integral to the growth we are experiencing. We are privileged that new franchisees recognize our commitment to the franchise community and that existing franchisees continue to reinvest in the brand by executing additional multi-unit agreements,” said Charles Watson, CEO of Tropical Smoothie Cafe, LLC. “This is a testament to our Support Center team, leadership, and passionate franchisees that position Tropical Smoothie Cafe as a brand with tremendous value to small business owners.”
The brand recently celebrated raising a record breaking $1.14 million in 2019 for their longtime charitable partner Camp Sunshine, in addition to various industry accolades, most recently including the Inc. 5000, Franchise Times Top 200+ and Entrepreneur’s Best Franchises at Any Budget lists. The Tropical Smoothie Cafe brand has experienced an impressive surge in nationwide expansion during the last few years, which continues to fuel new growth. Looking ahead, the fast-casual cafe concept has the goal to have 1,500 cafes open across the U.S. and reach an average AUV of $1 million by the end of 2025.
The brand is looking to add qualified franchisees to its growing brand and currently has franchise opportunities throughout the U.S. Interested candidates should have business experience, along with $125,000 in liquid assets and a minimum net worth of $350,000. Candidates that meet these preliminary qualifications will need to make an initial investment ranging between $246,500 – $580,500. The system currently boasts an average unit volume (AUV) of more than $730,000 – the highest in the company’s 22-year-history – with the top 50 percent reporting an AUV of more than $938,000.