Sysco
chips, chicken, frozen fruit, tortillas, yogurt, concentrates, and Sysco purchases. This rebate figure includes an annual flat fee in the amount of $100,000 that TSC receives from Sysco as an incentiv
From the filings
+8.983% units YoYHQ-led decisions
Tropical Smoothie Cafe
Quick service restaurantSoftware purchasing at Tropical Smoothie Cafe is controlled at the corporate level, with the Chief Information and Digital Officer, Michael Lapid, leading technology decisions. The franchise mandates a specific back-of-house system, MetiRi, an MIS system, and proprietary intranet and mobile applications. With 1,651 total units—1,650 franchised—and year-over-year unit growth of nearly 9%, the addressable market for compliant software vendors is substantial and concentrated under a single HQ authority.
For software vendors selling into US franchise brands.
Live signals
Total units
1,651
1,650 franchised
Unit growth YoY
+8.983%
vs prior filing
AUV
$978K
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
6%
national + local
Initial fee
$35K
per unit
Investment range
$276K–$771K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
12%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Franchisor behaviours
What the franchisor requires
25 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
You must comply with the accounting and reporting procedures that we prescribe, as modified from time to time, and must purchase and use all accounting and reporting software and equipment that we require, including without limitation point of sale equipment and software.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
The MIS System may allow us to review the results of your Franchised Business operations, provide you information, and otherwise facilitate communications among us and our franchisees.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You must submit to us at your expense, on such forms and in such format, that we prescribe: 1. within 10 days of the end of each month, a profit and loss statement for the Franchised Business for the immediately preceding month; and 2. within 90 days of the completion of your fiscal year, an annual financial…
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesItem 11
Instead, we have a marketing committee, which serves as a sounding board and provides feedback and suggestions to us on advertising and marketing related matters.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We may revoke our approval of any item, service, or supplier at any time, in our sole discretion, by notifying you and/or the supplier.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During 2025, we did not derive any revenue from direct sales of products, equipment, or services to franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
From December 30, 2024 to December 28, 2025, we received rebates of $35,708,959, which amounted to approximately 17% of our total revenues of $207,578,583.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
90Item 8
Operation - 90%
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you propose to purchase or lease any services or products not previously approved by us in writing (for services and products that require supplier approval), you must first notify us.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
assign telephone numbers, domain names and listings to us or our designee
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
You are required to comply with Payment Card Industry Data Security Standards (“PCI-DSS”).
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You must participate, at your own expense, in programs we may require from time to time regarding customer satisfaction and/or your compliance with the System, which may include (but are not limited to) a guest feedback system, guest survey programs, and mystery shopping.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Periodically, we (or our third-party designee) will conduct (as we deem advisable) quality control reviews of the Franchised Business.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may revise or change the Manuals at any time in our discretion and you expressly agree that such revisions or changes will be effective upon your receipt or at such other time as we may specify.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Your Site is subject to our acceptance and you must not move or relocate the Franchised Business without our prior acceptance.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Unless approved in writing by us, you may not establish or use a separate Online Site.
Is a minimum grand opening advertising spend required?
YesItem 11
You must spend at least $10,000 (not counting cost of food and smoothies), on a Grand Opening Marketing Program for the Franchised Business during the Grand Opening time period beginning approximately 60 days before opening the Franchised Business through 30-60 days afterwards.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You also must participate in the Tropical Smoothie Cafe mobile application, loyalty program and owned digital marketing programs and pay a monthly fee for the loyalty program and owned digital marketing programs which is currently $75 per month, but we reserve our right to increase this fee in accordance with Item 6.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
you must purchase or lease fixtures, equipment and supplies, furnishings, products and services, and related items from suppliers and distributors that we designate or approve.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
you must purchase or lease fixtures, equipment and supplies, furnishings, products and services, and related items from suppliers and distributors that we designate or approve.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Currently, we withdraw these fees from your account by electronic funds transfer.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must utilize our designated POS System or such other POS System as we may designate from time to time.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
In addition to any access we may have to your Computer System through the MIS System, you must: (a) supply us with any and all codes, passwords and information necessary to have access to your Computer System, and not change them without first notifying us;
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
You, your Operating Principal, and your managers must attend and complete, to our reasonable satisfaction, such additional training programs as we may require from time to time.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
We may require you to attend one or more regional or national conventions or conferences per calendar year, and we may charge a reasonable fee to fund such conventions or conferences, regardless of your attendance, in an amount reasonably commensurate with our internal and out-of-pocket costs.
The filing answers no to 4 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Franchise agreement
- Does the franchisor require minimum staffing levels or specific roles?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
Formal HQ procurement; C-suite sponsor + cross-functional committee + IT/security/legal; often PE-backed.
VP SalesHead of SalesCROSales Director
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
The vendor opportunity at Tropical Smoothie Cafe
Tropical Smoothie Cafe operates 1,651 quick-service restaurants, with 1,650 of those franchised and just one company-owned unit. The brand posted an average unit volume of $978,298 and grew its footprint by nearly 9% year-over-year. For software vendors, that means a large, almost entirely franchised network where technology adoption flows from a single corporate mandate. The franchise is part of TSC SPV Funding, LLC, and its franchisees are concentrated in Florida (259 units), Michigan (215), Texas (196), North Carolina (188), and Virginia (132). Among 1,673 mapped operators, 345 are multi-unit owners, with 322 running 2–9 locations and 23 operating 10–24. No operator exceeds 24 units, which means the buying center remains firmly at headquarters.
Who controls software purchasing
The 2026 Franchise Disclosure Document names five senior executives in Item 1. Michael Lapid serves as Chief Information and Digital Officer and is the most direct buyer for software vendors. The leadership team also includes CEO Christopher Maxwell Wetzel, COO Jonathan Biggs, CFO Chris Sasser, and Chief Development Officer Cheryl A. Fletcher. This structure signals that technology decisions—especially those touching operations, finance, or development—are made centrally. Vendors should prepare to engage Lapid’s office first, with the understanding that major commitments may require CFO or COO alignment given the mandated nature of the tech stack.
Mandated and current tech stack
Tropical Smoothie Cafe mandates five technology components for franchisees. The back-of-house system, MetiRi, and the MIS system are all required, as are the proprietary intranet and the Tropical Smoothie Cafe mobile application. Accounting software is recommended but not specified by vendor in the FDD extract. This stack leaves limited room for point-of-sale or operational platform displacement at the unit level, but it creates openings for vendors that can integrate with MetiRi or the MIS, enhance the mobile experience, or provide compliant accounting solutions. Any pitch should acknowledge the existing mandates and demonstrate how your software complements rather than conflicts with them.
Procurement, renewals, and timing
The FDD does not include an Item 8 procurement extract, so the designated-supplier versus approved-supplier framework is not publicly detailed here. Vendors should clarify that pathway early in conversations. On timing, the initial franchise term runs 15 years. Franchisees in good standing may renew for one additional 10-year term, provided they give advance written notice, satisfy all monetary obligations, sign a general release, and—if required—remodel to the then-current brand image. These renewal events, particularly the remodel trigger, can open windows for technology upgrades. With unit growth approaching 9% annually, new-store openings represent a parallel stream of technology deployment opportunities.
How to read the Tropical Smoothie Cafe FDD
The 2026 FDD is the primary source for the facts above. Item 1 lists the executive team; Item 11 details the mandated technology systems. The operator footprint and unit economics come from the brand’s disclosures. For vendors, the FDD is a due-diligence document, not a sales deck—it tells you who decides, what they require, and how the franchise agreement structures technology adoption over a 15-year horizon. Review it to align your product with the compliance and operational realities of this 1,651-unit system. When you are ready to prioritize targets, FranCloud can deliver a ranked list of franchise systems matched to your software category.
Questions vendors ask
Tropical Smoothie Cafe, answered from the filing
Michael Lapid, Chief Information and Digital Officer, is the named technology executive in the 2026 FDD. The CEO, COO, and CFO are also listed, indicating a centralized buying center for major software decisions.
The 2026 FDD mandates a BOH System, MetiRi, an MIS System, the Tropical Smoothie Cafe intranet, and its mobile application. Accounting software is recommended but not specified by vendor.
There are 1,651 total units, of which 1,650 are franchised and 1 is company-owned. The system spans 1,673 mapped operators, with 345 multi-unit owners.
The 2026 FDD does not disclose a specific procurement model in the provided extract. Vendors should inquire directly about designated versus approved supplier pathways for software.
The initial franchise term is 15 years, with one 10-year renewal available if conditions are met, including a potential remodel to current brand standards. Renewal cycles may trigger technology refresh opportunities.
The FDD was filed with state franchise regulators in 2026. You can review the full document using the embedded PDF viewer below for detailed Item 11 technology disclosures and Item 1 executive listings.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Tropical Smoothie Cafe files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
1,824 operators run 2,948 mapped locations. 345 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit1,479
2–9 units322
10–24 units23
Top states by locations
| FL | 259 |
|---|---|
| NC | 232 |
| MI | 215 |
| TX | 196 |
| VA | 132 |
Ownership
The portfolio behind Tropical Smoothie Cafe
pe_firm of Blackstone.
Sibling brands
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.