From the filings

+8.983% franchised outlets YoYHQ-led decisions

Tropical Smoothie Cafe

Quick service restaurant

Tropical Smoothie Cafe keeps software purchasing at headquarters: Item 11 requires a franchisor-designated Computer System, POS System, and mandatory MIS reporting on sales, cost, and labor data. That mandate spans 1,651 restaurants, 1,650 of them franchised, with franchised outlets growing 9.0% year over year.

For software vendors selling into US franchise brands.

Live signals

Total units
1,651
1,650 franchised
Franchised outlet growth
+8.983%
Item 20, last two year-ends
AUV
$978K
Item 19, 2025
Royalty
6% component; full terms unconfirmed
percentage component
Ad fund
6%
percentage component
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

Ordinary royalty terms

6% component; full terms unconfirmed

Complete royalty terms are not confirmed for the selected filing.

Recorded percentage components

These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.

1recorded components (FY2026)

Recorded percentage components (FY2026)Ad fund 6%. Components use their own filing bases and conditions. Drawn against a 15% reference scale.

15% reference

Ad fund 6%

Mandated & recommended tech

The systems vendors compete with

1 technology requirement is recorded in this filing. A required choice lists alternatives for one obligation. Read each cited clause for its conditions.

SyscoSysco
Mandatory
InventoryItem 8

We or our affiliates may (but are under no responsibility to) negotiate contracts and pricing with suppliers, manufacturers, and distributors for your benefit. We or our affiliates may also (but are under no responsibility to) negotiate with suppliers, manufacturers, and distributors to receive discounts or rebates on certain items you must purchase. Our rebate programs vary depending on the supplier and the nature of the product or service and are based on either a percentage of sales or a fixed amount or range per specified unit or quantity of product (i.e., per case or per pound). 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. These rebates were collected in connection with purchases by franchisees of certain items from approved or designated suppliers, including without limitation, potato 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 incentive to continue our ongoing relationship with them as a supplier. In 2025, we contributed some of the rebate revenue to a brand and technology fund which is used to fund system-wide brand and technology initiatives, including without limitation, centralized cafe technology support desk and guest support services, point of sale and back of house office systems development, testing and implementation, contributions toward annual franchisee convention costs, licensing costs for the learning management system, financial data software subscription costs, and other supply chain initiatives. Unused brand and technology fund rebates are carried forward to the next year. The price(s) of any or all of the items you must purchase from suppliers and other third parties may increase. Costs of goods may vary from month to month, depending on factors such as the volume of purchases, usage, vendor minimums, inventory turns, ingredients costs, market demand, market supply, freight, and other similar factors. Cost of goods may vary by geographic area due to freight charges incurred as a result of stocking of products in multiple distribution centers. Freight costs for franchisees entering new markets may be higher than those franchisees incur in other markets, and you should adjust your cost projections accordingly. We and our affiliates reserve the right to sell some products associated with the Tropical Smoothie Cafe brand to different retail outlets, including among others, grocery stores or warehouse retailers. We and our affiliates reserve the right to become an Approved Supplier, or the only Approved Supplier, for any goods or services at some point in the future. We may negotiate agreements with suppliers that include marketing funds that are pooled and directed to the NMF Account. These agreements allow the supplier to consistently achieve market wide promotional goals when advertising their products with the Tropical Smoothie Cafe brand. If applicable law prohibits us from receiving supplier rebates, we may have to offset lost profits with increases in costs to underlying services and goods. Miscellaneous

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 3 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Item 11

The marketing committee is a committee of the Tropical Franchisee Council (as more fully described in Item 20) and is comprised of franchisees, as well as our employees.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise 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?

0

Item 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?

Yes

Item 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?

90

Item 8

Operation - 90%

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Franchise agreement

expenses incurred by us in connection with determining whether we will approve an item, service, or supplier.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 6

Currently, we withdraw these fees from your account by electronic funds transfer.

Must the franchisee participate in a gift card program?

Yes

Item 6

Gift Card $0.16 per Payable monthly You are required to participate in our gift Transaction qualified card program, which includes digital gift Fee(3)(4) transaction, or cards purchased online and physical gift $18 per month cards purchased in-cafe, and may in the per cafe, future include physical gift cards…

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Franchise 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

The vendor opportunity at Tropical Smoothie Cafe

Tropical Smoothie Cafe operates 1,651 restaurants, 1,650 of them franchised, under parent Blackstone alongside sibling brands Jersey Mike's Subs, Servpro, and 7 Brew. The franchisee base includes 1,435 mapped operators, 112 of them multi-unit, across roughly 1,673 located restaurants, concentrated in Florida, Texas, Michigan, Virginia, and North Carolina. Item 19 reports a $978,298 average for restaurants open at least one year, excluding non-traditional and seasonal locations. Franchised outlets grew 9.0% year over year.

Who controls software purchasing

Software decisions run through Tropical Smoothie Cafe's headquarters, where Michael Lapid holds the Chief Information and Digital Officer role. Franchisees must purchase or lease the Computer System, including the POS System and a mandated back of house/back office (BOH) system; the POS System is currently a designated hardware-as-a-service and software-as-a-service program, and the software must be kept current with whatever upgrades the company requires. The Computer System must also connect to Tropical Smoothie Cafe's own systems so HQ can poll sales, cost, and labor data through its mandated MIS System, and franchisees must maintain a mandated high-speed broadband connection with an approved provider to support it.

Tech named in the FDD, and what is actually required

The filing names MetiRi as the sole approved provider of certain required software, and drive-thru locations must add specific hardware and software — headsets, timers, exterior menu boards — as part of the Computer System. Item 8 names Sysco as a supplier to the system. Franchisees also must participate in the Tropical Smoothie Cafe intranet, mobile app, loyalty program, and digital marketing programs, paying a combined $75 monthly fee for the loyalty and marketing programs and a separate $54 monthly fee for digital ordering.

Procurement, renewals, and timing

Item 8 sets an approved-supplier list: fixtures, equipment, food products, and related items must come from suppliers and distributors Tropical Smoothie Cafe designates or approves, split across direct purchases from the company or its affiliates, purchases from Approved Suppliers, and purchases that must simply meet system specifications.

How to read the Tropical Smoothie Cafe FDD

The embedded viewer below carries Tropical Smoothie Cafe's 2026 Franchise Disclosure Document in full, including the Item 11 technology mandates and Item 8 supplier rules summarized above.

Talk to FranCloud for a ranked list of franchise systems like Tropical Smoothie Cafe where the technology mandate and growth curve line up with your product.

Ordinary royalty terms

Complete royalty terms are not confirmed.

Questions vendors ask

Tropical Smoothie Cafe, answered from the filing

Tropical Smoothie Cafe's headquarters controls the mandate: Michael Lapid, Chief Information and Digital Officer, oversees the technology franchisees must run. Vendors should approach corporate IT and procurement rather than individual franchise owners, since the Computer System, POS System, and MIS reporting system are all HQ-designated.
Item 11 requires a franchisor-designated Computer System and POS System, plus mandatory participation in the MIS System that reports sales, cost, and labor data to HQ, and Item 6 adds a mandated back-of-house (BOH) system. The filing names MetiRi as the sole approved provider of certain required software; Item 8 names Sysco as a supplier.
1,651 quick-service restaurants, 1,650 of them franchised, with just one company-owned location.
Item 8 runs an approved-supplier list: fixtures, equipment, supplies, and food products must come from distributors Tropical Smoothie Cafe designates or approves, including Sysco, which Item 8 names as a supplier to the system. Franchisees may propose alternative suppliers for approval.
The initial term is 15 years, with one additional 10-year renewal available to franchisees in good standing who meet remodeling and compliance conditions. Franchised outlets grew 9.0% year over year, pointing to steady new-unit tech setups alongside the renewal cycle.
The embedded PDF viewer below carries Tropical Smoothie Cafe's 2026 Franchise Disclosure Document in full.
Source

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

1,435 operators run 1,673 mapped locations. 112 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit1,323
2–9 units109
10–24 units3

Top states by locations

FL165
TX108
MI106
VA100
NC62

Ownership

The portfolio behind Tropical Smoothie Cafe

Ownership: Blackstone.

Sibling brands

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.