# Tropical Smoothie Cafe Item 19 Deep Dive: $954K Median Across 1,268 Units

> Tropical Smoothie Cafe Item 19: $954K median revenue across 1,268 franchised cafes in calendar 2024. What the median tells you, year-one ramp, and how it compares to Smoothie King and Jamba.

**Last updated**: 2026-06-05
**URL**: https://vetmyfranchise.com/blog/tropical-smoothie-cafe-item-19-deep-dive?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md

> **Quick answer:** Tropical Smoothie Cafe's most recent Item 19 reports a $954K median across 1,268 franchised cafes — a large, recent, methodologically clean sample. No tenure filter, which means the disclosure includes ramp-stage cafes alongside mature ones (a more representative but slightly lower median than tenure-filtered alternatives would produce). The brand sits at the top of the publicly franchised smoothie/healthy-QSR category.

## The Disclosure

Tropical Smoothie's most recent Item 19 covers calendar year 2024:

| Metric | Value |
|---|---:|
| Sample size | 1,268 franchised cafes |
| Sample criteria | All franchised cafes (no tenure filter) |
| Reporting period | Calendar year 2024 |
| Median annual gross sales | $954,743 |
| Total system units | 1,651 |
| Total investment (Item 7) | $340,750 - $814,500 |
| Royalty rate | 6% of gross sales |

The "no tenure filter" detail is methodologically important. Many franchise disclosures restrict their Item 19 to units that have been open for at least 12 or 24 months — a filter that excludes ramp-stage performance and produces a higher disclosed median. Tropical Smoothie's disclosure includes the full franchised system, which means a small number of brand-new cafes are dragging the median down slightly. The trade-off is that the disclosed number is more representative of the actual franchised operating reality.

For buyers, the implication is that the $954K median is closer to the "average operating outcome across all open franchised cafes" than to "what a mature cafe earns once it's fully ramped." A buyer underwriting a new build should still model year-one below the median, but the gap between disclosed median and steady-state is smaller than it would be for a brands disclosing only "units open 24+ months."

## Why $954K Is the Category-Leading Number

Tropical Smoothie's $954K median places the brand at the top of the publicly franchised smoothie/healthy-QSR category. A snapshot of category peers:

| Brand | Sample (typical) | Median AUV | Total investment |
|---|---:|---:|---|
| Tropical Smoothie Cafe | 1,268 | $954K | $341K-$815K |
| [Smoothie King](/franchise/smoothie-king-franchises-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | 700+ | ~$500K-$700K | $250K-$700K |
| Jamba (where franchised) | smaller | ~$500K-$650K | $300K-$700K |
| [Robeks](/franchise/robeks-franchise-corporation?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | smaller regional | ~$400K-$600K | $200K-$500K |
| Planet Smoothie | smaller | ~$300K-$500K | $200K-$400K |

Two reasons drive the gap between Tropical Smoothie and the pure-smoothie competition. First, the menu is broader: Tropical Smoothie sells flatbreads, wraps, sandwiches, and bowls alongside smoothies, which produces a higher average ticket and broader dayparts (the brand captures lunch traffic that pure-smoothie concepts don't). Second, the brand has been aggressive about real estate, locking in higher-quality trade areas than smaller competitors typically secure.

The implication for buyers: comparing Tropical Smoothie head-to-head with other smoothie brands by AUV alone is misleading because the business models aren't equivalent. Tropical Smoothie is closer to a healthy-fast-casual than a pure smoothie operator. The right comparison set includes brands like Freshii, Sweetgreen (not franchised), and B.Good — but most of those aren't widely franchised, leaving Tropical Smoothie as the dominant publicly franchised brand in the healthy-fast-casual space.

## Year-One Ramp Below the Median

A new Tropical Smoothie cafe doesn't open at $954K of revenue. Year-one revenue typically lands at $670K-$760K, with month-by-month progression roughly:

- Months 1-3: $50K-$75K monthly revenue (opening burst then settling)
- Months 4-6: $60K-$80K monthly revenue
- Months 7-9: $65K-$85K monthly revenue
- Months 10-12: $70K-$95K monthly revenue
- Annualized year-one: $670K-$760K

By year two, most well-located cafes ramp toward the $850K-$950K range. By year three, mature cafes hit or exceed the system median. The ramp curve is typical for healthy-fast-casual — slower than burger QSR but faster than membership-driven businesses.

The Item 19 disclosure's lack of a tenure filter means the disclosed median already includes some of this ramp drag. The "no-filter" methodology is honest about that. A buyer who underwrites year one at 70-80% of the disclosed median is operating from realistic assumptions.

## What the Disclosure Doesn't Cover

The Item 19 reports the system median. It doesn't disclose:

- **Quartile distribution.** No P25 or P75 is published, which limits buyers' ability to model the bottom-of-distribution downside case. To estimate, assume a 2-2.5× P75-to-P25 ratio (typical for healthy-fast-casual), which would place the P25 around $600K-$700K and the P75 around $1.3M-$1.5M.
- **Geographic variance.** A Tropical Smoothie in Charleston is operating in a different demand environment than one in Boise. The system median averages those markets without disclosing the variance.
- **Format variance.** End-cap inline cafes, drive-thru cafes, and food-court formats produce different economics. The disclosure groups all franchised cafes.

For specific market analysis, the brand's franchise development team can provide market-specific guidance. Validation calls with 8-12 existing franchisees in markets comparable to your target are the most reliable way to fill the gap.

## What This Means for Buyers

- **The $954K median is methodologically clean and category-leading.** No tenure filter, large sample, recent reporting period.
- **Underwrite year-one at $670K-$760K.** A 24-month ramp to the median is the right expectation.
- **Working capital is the year-one bottleneck.** A cafe operating at $700K of revenue against $400K of fixed annual cost (rent, base labor, royalty, ad fund) has thin operating cash flow. See our [working capital math](/blog/franchise-working-capital-why-50k-isnt-enough?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) for the bottom-up calculation.
- **Multi-unit operators are favored.** Like [Wingstop](/franchise/wingstop-franchising-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) and Dunkin', Tropical Smoothie's development pipeline favors experienced multi-unit operators. Single-unit territory in attractive markets is increasingly constrained.
- **Compare to the right peer set.** Tropical Smoothie's economics look strong against pure-smoothie brands and look reasonable against healthy-fast-casual. Comparing to traditional QSR (burgers, pizza) misses the category dynamics.

For category context, see our [best smoothie franchises](/blog/best-smoothie-franchises?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) roundup and the [Tropical Smoothie vs Smoothie King comparison](/blog/tropical-smoothie-vs-smoothie-king-franchise?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md). For brand-specific cost detail, the live `/franchise/tsc-franchisor-llc` page carries Item 7 specifics.

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## Brands mentioned in this post

- [Smoothie King](/franchise/smoothie-king-franchises-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
- [Wingstop](/franchise/wingstop-franchising-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
- [Robeks](/franchise/robeks-franchise-corporation?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
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