Buying a Tropical Smoothie Cafe franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 40 7(a) loans to buy an existing Tropical Smoothie Cafe (classified mostly as Limited-Service Restaurants), totaling $28.5M. The median loan was $474,000, 27% lower than the $645,250 median for all SBA-financed acquisitions. 8 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Tropical Smoothie Cafe resale loans landed between $287,000 and $916,950.
- Lender experience exists. Live Oak Banking Company alone has financed 9 Tropical Smoothie Cafe resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Tropical Smoothie Cafe resale
The median SBA 7(a) loan for a Tropical Smoothie Cafe resale was $474,000 across 40 loans (FY2018 to FY2026). Live Oak Banking Company, SouthState Bank, National Association and Truliant FCU have financed the most Tropical Smoothie Cafe resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Tropical Smoothie Cafe acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $894K | $296,000 | |
| FY2019 | 9 | $5.9M | $352,000 | |
| FY2020 | 4 | $2.2M | $393,500 | |
| FY2021 | 2 | $623K | $311,500 | |
| FY2022 | 6 | $7.5M | $729,000 | |
| FY2023 | 2 | $1.4M | $688,500 | |
| FY2024 | 6 | $3.9M | $529,550 | |
| FY2025 | 3 | $2.7M | $500,000 | |
| FY2026 | 5 | $3.3M | $794,000 |
How often do these acquisition loans fail?
Fewer than 20 Tropical Smoothie Cafe acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Tropical Smoothie Cafe resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 9 | 22.5% | $10.2M | |
| 2 | SouthState Bank, National Association | 3 | 7.5% | $2.8M | |
| 3 | Truliant FCU | 3 | 7.5% | $1.7M | |
| 4 | Southern Bank | 3 | 7.5% | $1.6M | |
| 5 | United Community Bank | 2 | 5.0% | $1.9M | |
| 6 | VelocitySBA, LLC | 2 | 5.0% | $567K | |
| 7 | Cache Valley Bank | 2 | 5.0% | $399K | |
| 8 | TowneBank | 1 | 2.5% | $1.8M | |
| 9 | HomeTrust Bank | 1 | 2.5% | $1.7M | |
| 10 | CRF Small Business Loan Company, LLC | 1 | 2.5% | $1.1M |
States where Tropical Smoothie Cafe units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 9 | 22.5% | $6.1M | |
| 2 | Texas | 4 | 10.0% | $1.2M | |
| 3 | South Carolina | 3 | 7.5% | $3.1M | |
| 4 | North Carolina | 3 | 7.5% | $1.5M | |
| 5 | Utah | 3 | 7.5% | $899K | |
| 6 | New York | 2 | 5.0% | $2.4M | |
| 7 | Alabama | 2 | 5.0% | $1.9M | |
| 8 | New Hampshire | 2 | 5.0% | $1.4M | |
| 9 | Georgia | 2 | 5.0% | $1.2M | |
| 10 | Michigan | 1 | 2.5% | $2.9M |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Tropical Smoothie Cafe
Lenders code each loan to a NAICS industry. For Tropical Smoothie Cafe the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 20 | 50.0% | $15.7M | |
| 2 | Snack and Nonalcoholic Beverage Bars | 15 | 37.5% | $9M | |
| 3 | Full-Service Restaurants | 4 | 10.0% | $1.5M | |
| 4 | All Other Specialty Food Retailers | 1 | 2.5% | $2.4M |
Questions buyers ask
How much do buyers borrow to buy a Tropical Smoothie Cafe franchise?
The median SBA 7(a) loan for a Tropical Smoothie Cafe resale was $474,000 across 40 loans (FY2018 to FY2026). The middle half of loans ran from $287,000 to $916,950. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Tropical Smoothie Cafe acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Tropical Smoothie Cafe (9, 23% of the total). SouthState Bank, National Association, Truliant FCU, Southern Bank follow.
What interest rate and term do Tropical Smoothie Cafe acquisition loans carry?
The average initial rate at approval was 7.99% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Tropical Smoothie Cafe resale riskier than other SBA-financed acquisitions?
Too few Tropical Smoothie Cafe acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Tropical Smoothie Cafe units being bought with SBA loans?
Florida (9), Texas (4), South Carolina (3), North Carolina (3), Utah (3). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All Limited-Service Restaurants acquisitions
- Florida acquisitions
- Texas acquisitions
- South Carolina acquisitions
- Live Oak Banking Company
- SouthState Bank, National Association
- Truliant FCU
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Tropical Smoothie Cafe" (franchise code S1815). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.