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Tropical Smoothie Café opened 43 Cafes, signed 103 franchise deals since January

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July 15, 2020

Tropical Smoothie Café said it has signed 103 new franchise agreements and opened 43 new stores this year already in 25 states. In fact, the brand said in a news release that since the bulk of the restaurant industry problems began with the pandemic in March, it signed 49 of those agreements, most (67%) with current franchisees.

Tropical Smoothie Cafe Llc. launched a systemwide franchise initiative to help its owners through the struggles of most of the past year when it began a support system for franchisees through the Paycheck Protection Program (PPP) funding process. Additionally, its real estate team shifted priorities to assist franchisees as they negotiated rent deferrals and abatements.

As a result, Tropical Smoothie Cafe franchisees secured more than $29 million in PPP funds for small business owners across the system and achieved $1.8 million in rent relief for approximately 250 cafes. Additionally, the brand implemented hyper-local marketing initiatives, enhanced order modes to include curbside and delivery options, and offered a 50% royalty relief reduction for eight weeks to further support franchisees.

"As we reflect on the past few months, we're incredibly humbled by the momentum we've accomplished during one of the most challenging periods our industry has ever experienced. …" CEO Charles Watson, said in the release. "O ur franchisees have shown grit and perseverance through all of this, and the credit for our brand success and momentum goes to them."

In addition to marketing and financial support, Tropical Smoothie Cafe participated in the nationwide "#InThisTogether" campaign, and encouraged franchisees to support local essential workers and first responders by donating smoothies to local hospitals, schools, police stations, fire rescue stations, and more. Collectively, the brand donated more than 210,000 smoothies nationwide and $100,000 to the American Nurses Foundation.

The brand is continuing its search for franchisees nationally. Interested candidates with business experience and a minimum net worth of $350,000 (with $125,000 in liquid assets) will need to make an initial investment ranging between $198,500 and $543,500. The better-for-you food franchise currently boasts an average unit volume (AUV) of more than $768,000 — the highest in the company's 22-year-history — with the top 50% reporting an AUV of more than $982,000.

Tropical Smoothie currently has more than 850 locations nationwide.