TROPICAL SMOOTHIE CAFE Franchise Complaints
July 21, 2012
Tropical Smoothie Café franchise opportunity: Are you considering it?
You should be aware that data released by the Small Business Administration (SBA) indicates that Tropical Smoothie Café franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 24%*.
[Editor's note: The SBA failure rate is disputed by the company. Read: TROPICAL SMOOTHIE CAFÉ Franchise Loan Defaults Overstated, Says Report]
That qualifies Tropical Smoothie Café for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Tropical Smoothie Café franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Tropical Smoothie Café franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Tropical Smoothie Café franchise owners have a 24% SBA loan default rate.
The overall net growth of Tropical Smoothie Café franchises by 23% (from 244 in 2008 to 301 in 2011) might give the appearance of steady, failure-free growth. However, data from the Tropical Smoothie Cafe FDD (see 2nd chart below) indicates that within that same period, 67 franchises were terminated or reaquired.
When doing your due diligence, it pays to dig into the numbers of the Franchise Disclosure Document (FDD) rather than rely on the overall growth figures available online.
| Tropical Smoothie Café Franchise | |
| Tropical Smoothie U.S. franchises in 2008: | 244 |
| Tropical Smoothie U.S. franchises in 2011: | 301 |
| Growth in franchise units 2008 – 2011 (#) | 57 |
| Growth in franchise units 2008 – 2011 (%): | 23% |
| SBA loans granted since 2001: | 156 |
| SBA loan failure rate: | 24% |
| Sources: Tropical Smoothie Franchise Disclosure Documents (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Tropical Smoothie Café franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Tropical Smoothie Café terminated/reaquired 67 franchises (18%) between 2008-2011
The relatively high franchise termination rate of Tropical Smoothie Café is a franchise red flag.
| Tropical Smoothie Café Franchises 2008-2011 | |
| Franchises open January 2008: | 244 |
| Franchises added 2008-2011: | 124 |
| Franchises terminated/reaquired 2008-2011 | 67 |
| Franchises terminated/reaquired (%) | 18% |
| Sources: Tropical Smoothie Franchise Disclosure Documents (FDDs) |
At the start of 2008, there were 244 US Tropical Smoothie franchises. From 2008 through 2011, an additional 124 franchises opened for a total of 368 franchises. During the same time 67 franchises were either terminated or reacquired by the franchisor. At the beginning of 2012, there were 301 Tropical Smoothie franchises open in the U.S.
That would come out to a termination/reaquisition percentage of 18%, which (we believe) could reasonably be called a failure rate. (The 24% figure is a default on SBA loans since 2001, so it may be that the actual failure rate earlier in the decade was much higher than in recent years.) Perhaps the company can clarify.
How stable is Tropical Smoothie Franchise Development Corporation?
The FDDs raise a few additional red flags. The first is the financial stability of the franchisor, Tropical Smoothie Franchise Development Corporation. The 2011 Tropical Smoothie Cafe FDD states:
“December 2010 AUDITED FINANCIAL STATEMENTS SHOW THAT WE HAD A RETAINED EARNINGS DEFICIT OF $3,280,977 AND A DEFICIT IN SHAREHOLDERS’ EQUITY OF $3,097,524″
The 2012 Tropical Smoothie Cafe FDD states:
“OUR DECEMBER 31, 2011 AUDITED FINANCIAL STATEMENTS SHOW THAT WE HAD A RETAINED EARNINGS DEFICIT OF $4,702,096 AND A DEFICIT IN SHAREHOLDERS’ EQUITY OF $4,518,661″
Not only does that indicate that the franchisor appears to be in poor financial shape, but that it worsened by nearly $1.5M from 2010 to 2011. Minnesota requires the escrow of franchise fees due to the Franchisor’s financial condition.
The Tropical Smoothie franchise comes with no territorial protection
Another red flag is that the FDDs state that Tropical Smoothie Cafe franchisor does not grant an exclusive territory at all, and that another TSC can open up across the street and you’d have nothing to say about it.
What do you think?
Are you familiar with the Tropical Smoothie Café franchise opportunity?
What do you think accounts for the SBA loan failure rate of Tropical Smoothie Café franchise owners?
What steps should Tropical Smoothie Café be taking to stop further franchise failures?
Has Tropical Smoothie Café taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE TROPICAL SMOOTHIE CAFE FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR TROPICAL SMOOTHIE CAFE FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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KEVA JUICE Franchise Complaints
July 21, 2012
The Keva Juice franchise website reads: “Sorry franchising oportunities [sic] are not available at this time.”
No need to apologize. Really.
According to data released by the Small Business Administration (SBA) indicates that Keva Juice franchise owners who qualified for SBA-backed franchise loans have an outrageously high loan failure rate of 40%.
That qualifies Keva Juice for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Keva Juice franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Keva Juice franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Keva Juice franchise owners have an outrageous 40% SBA default rate.
The SBA loan high failure rate of Smoothie King was a franchise red flag.
| Smoothie King Franchise | |
| SBA loans granted since 2001: | 62 |
| SBA loan failure rate: | 46% |
| Sources: Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Keva Juice franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Keva Juice kept selling franchises amidst high failures
In 2009, Keva Juice’s SBA loan failure rate was reported to be 26%.
According to franchisee Lisa Armand, Keva Juice continued to sell franchises. In 2009, she posted:
As a former Keva Juice owner who lost over $250,000 from the failure of 2 stores & declared bankruptcy as a result, I am pleased to see this information available to the public. Despite more than half of Keva Juice stores across the country closing, the rest floundering on the brink of closing & several families losing their life savings as a result, Keva Juice USA continues to sell this failed business model with no apologies. It’s criminal.
Are you familiar with the Keva Juice franchise opportunity?
What do you think accounts for the SBA loan failure rate of Keva Juice franchise owners?
What steps should Keva Juice be taking to stop further franchise failures?
Has Keva Juice taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE SMOOTHIE KING FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR SMOOTHIE KING FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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SMOOTHIE KING Franchise Complaints
July 21, 2012
Smoothie King franchise opportunity: Are you considering it?
The Smoothie King franchise website states: “By buying into a franchise, you have the backing of a recognized brand with a proven track record and business method… Franchising allows you to obtain independence and to be your own boss with far less risk.”
However, data released by the Small Business Administration (SBA) indicates that Smoothie King franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 28%.
That qualifies Smoothie King for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Smoothie King franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Smoothie King franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Smoothie King franchise owners have an alarming 28% SBA default rate.
The SBA loan high failure rate of Smoothie King is a franchise red flag.
| Smoothie King Franchise | |
| SBA loans granted since 2001: | 62 |
| SBA loan failure rate: | 46% |
| Sources: Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Smoothie King franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Smoothie King franchise opportunity?
What do you think accounts for the SBA loan failure rate of Smoothie King franchise owners?
What steps should Smoothie King be taking to stop further franchise failures?
Has Smoothie King taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE SMOOTHIE KING FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR SMOOTHIE KING FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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PLANET SMOOTHIE Franchise Complaints
July 21, 2012
Planet Smoothie franchise opportunity: Are you considering it?
The Planet Smoothie franchise website states: “Planet Smoothie is a category leader with well over a hundred units across the nation [Actually, there are 99 locations listed on the Planet Smoothie website]…Planet Smoothie is continuously working to improve your business… Planet Smoothie is an organization with dedicated professionals seeking to make your business a success.”
However, data released by the Small Business Administration (SBA) indicates that Planet Smoothie franchise owners who qualified for SBA-backed franchise loans have an shockingly high loan failure rate of 46%.
That qualifies Planet Smoothie for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Planet Smoothie franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Planet Smoothie franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Planet Smoothie franchise owners have an alarming 46% SBA default rate.
The apparent drop in Planet Smoothie franchises in recent years is also a franchise red flag.
| Planet Smoothie Franchise | |
| Planet Smoothie U.S. franchises in 2008: | 126 |
| Planet Smoothie U.S. franchises in 2012: | 99 |
| Growth in franchise units 2008 – 2012 (#) | -27 |
| Growth in franchise units 2008 – 2012 (%): | -21% |
| SBA loans granted since 2001: | 62 |
| SBA loan failure rate: | 46% |
| Sources: Entrepreneur, company website (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Planet Smoothie franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Planet Smoothie franchise opportunity?
What do you think accounts for the SBA loan failure rate of Planet Smoothie franchise owners?
What steps should Planet Smoothie be taking to stop further franchise failures?
Has Planet Smoothie taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE PLANET SMOOTHIE FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR PLANET SMOOTHIE FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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MAUI WOWI Franchise Complaints
July 21, 2012
Maui Wowi Hawaiian Coffees and Smoothies franchise opportunity: Are you considering it?
The Maui Wowi franchise website states: “From freedom of choice, to Aloha service, to awesome value, Maui Wowi Hawaiian hits the notes that are important to entrepreneurs seeking to gain control over their life [sic]. Maui Wowi Hawaiian gives you the freedom to have the business lifestyle you want to live and improve the quality of your life.”
However, data released by the Small Business Administration (SBA) indicates that Maui Wowi franchise owners who qualified for SBA-backed franchise loans have an shockingly high loan failure rate of 49%.
That qualifies Maui Wowi for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Maui Wowi franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Maui Wowi franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Maui Wowi franchise owners have an alarming 49% SBA default rate.
The apparent drop in Maui Wowi franchises in recent years is also a franchise red flag.
| Maui Wowi Franchise | |
| Maui Wowi U.S. franchises in 2008: | 328 |
| Maui Wowi U.S. franchises in 2011: | 231 |
| Growth in franchise units 2008 – 2011 (#) | -97 |
| Growth in franchise units 2008 – 2011 (%): | -30% |
| SBA loans granted since 2001: | 51 |
| SBA loan failure rate: | 49% |
| Sources: Entrepreneur (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Maui Wowi franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Maui Wowi franchise opportunity?
What do you think accounts for the SBA loan failure rate of Maui Wowi franchise owners?
What steps should Maui Wowi be taking to stop further franchise failures?
Has Maui Wowi and founder Michael Haith taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE MAUI WOWI FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR MAUI WOWI FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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JUICE IT UP Franchise Complaints
July 21, 2012
Juice It Up franchise opportunity: Are you considering it?
The Juice It Up franchise website states: “As a Juice It Up! Franchisee, you have the opportunity to choose health, change lives and make money!”
However, data released by the Small Business Administration (SBA) indicates that Juice It Up franchise owners who qualified for SBA-backed franchise loans have an outrageously high loan failure rate of 51%.
That qualifies Juice It Up for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Juice It Up franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Juice It Up franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Juice It Up franchise owners have an alarming 51% SBA default rate.
The apparent drop in U.S. Postal Connections franchises in recent years is also a franchise red flag.
| Juice It Up Franchise | |
| Juice It Up U.S. franchises in 2008: | 145 |
| Juice It Up U.S. franchises in 2012: | 83 |
| Growth in franchise units 2008 – 2012 (#) | -62 |
| Growth in franchise units 2008 – 2012 (%): | -43% |
| SBA loans granted since 2001: | 81 |
| SBA loan failure rate: | 51% |
| Sources: Entrepreneur (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Juice It Up franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Juice It Up franchise opportunity?
What do you think accounts for the SBA loan failure rate of Juice It Up franchise owners?
What steps should Juice It Up be taking to stop further franchise failures?
Has Juice It Up taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE JUICE IT UP FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER JUICE IT UP FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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SMOOTHIE FACTORY Franchise Complaints
July 21, 2012
Smoothie Factory franchise opportunity: Are you considering it?
The Smoothie Factory franchise website states: “Smoothie Factory provides hands on training and the materials you need to be a success in your Smoothie Factory business.”
However, data released by the Small Business Administration (SBA) indicates that Smoothie Factory franchise owners who qualified for SBA-backed franchise loans have an outrageously high loan failure rate of 33%.
That qualifies Smoothie Factory for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Smoothie Factory franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Smoothie Factory franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Smoothie Factory franchise owners have an alarming 60% SBA default rate.
The high default rate of Smoothie Factory franchises in recent years is a cause for concern.
| Smoothie Factory Franchise | |
| SBA loans granted since 2001: | 34 |
| SBA loan failure rate: | 60% |
| Sources: Entrepreneur (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Smoothie Factory franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Smoothie Factory franchise opportunity?
What do you think accounts for the SBA loan failure rate of Smoothie Factory franchise owners?
What steps should Smoothie Factory be taking to stop further franchise failures?
Has Smoothie Factory taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE SMOOTHIE FACTORY FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER SMOOTHIE FACTORY FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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