TSC Business Plan Template

8/7/2019 TSC Business Plan Template

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(Corporate Name)

(Corporate Name)

Business Plan(Date)

(Owners Name)President/CEO

(Store Street Address)(City, Zipcode)

(Telephone)


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Table of Contents(CORPORATE NAME)..............................................................................................................................................1

TABLE OF CONTENTS.............................................................................................................................................2

EXECUTIVE SUMMARY..........................................................................................................................................1

COMPANY OVERVIEW..............................................................................................................................................1PRODUCTS............................................................................................................................................................1MANAGEMENT.......................................................................................................................................................1FINANCIAL PROJECTIONS..........................................................................................................................................1FUNDS REQUIRED..........................................................................................................................................................................1

* LEASEHOLD IMPROVEMENT COSTS MAY BE GREATER FOR VARIOUS REASONS, SUCH AS A

THE SIZE OF THE LOCATION AND THE LOCAL MARKET CONDITIONS, WHICH WILL AFFECT

YOUR OVER ALL TOTAL INVESTMENT............................................................................................................2

** BASED ON A 1600 SQUARE FOOT MODEL...................................................................................................2

*** OTHER EXPENSES MAY INCLUDE, BUT ARE NOT LIMITED TO: REAL ESTATE BROKER,

UNIFORMS, INITIAL TRAINING, INSURANCE DEPOSITS AND PERMITS, LEGAL AND

ACCOUNTING FEES..................................................................................................................................................2

**** FRANCHISEE SHOULD ALSO SET ASIDE ADDITIONAL FUNDS FOR WORKING CAPITAL... ..2

INTRODUCTION.........................................................................................................................................................3

BUSINESS DESCRIPTION...........................................................................................................................................3BUSINESS FORMATION.............................................................................................................................................3MISSION...............................................................................................................................................................3GOALS.................................................................................................................................................................3

VISION.................................................................................................................................................................4DAILY PURPOSE.....................................................................................................................................................4WEWILLFOCUSONINCREASINGBRANDAWARENESS, GROWINGSAMESTORESALES, ANDCONTRIBUTINGTOWARDGREATER

PROFITABILITYANDIMPROVINGTWO-WAYCOMMUNICATIONFORTHEBENEFITOFALLTHESTAKEHOLDERS. ...............................4GUIDING PRINCIPLES...............................................................................................................................................4MARKETING ANALYSIS SUMMARY (EXAMPLE).............................................................................................................5OURMARKETCONSISTSOFBOTHBUSINESSESANDRESIDENCESINOUR3-5 MILETRADEAREA. THEREAREABOUT 18,000 PEOPLELIVINGANDWORKINGINTHISAREA. IF WECANCONVINCEJUST 15% OFTHOSEPEOPLETOBUYOURSANDWICHESTWICEAMONTH, WELLSELL 65,000 SANDWICHETOTHATMARKETALONE. ADD 20% TOTHATAMOUNTTOTHEADDITIONALBUSINESSWEWILLGENERATEBYCATERINGANDFUNDRAISINGANDTHOSETWOSEGMENTSALONEWILLBUY 138,000 MEALS. .................5THEDEMOGRAPHICSINTHERESIDENCESHAVESHITFTEDFROMTRADITIONALHOUSEHOLDS (TWOPARENTSWITHCHILDREN) TOMORENON-TRADITIONALHOUSEHOLDS; ASARESULT, MANYADULTSFEELTHEYHAVELESSFREETIME. CONSUMERSREPORTTHATTHEYAREEATINGOUTMOREOFTENTOFREEUPTIMENORMALLYSPENTCOOKINGANDUSETHATTIMETOENJOYTHEIRFAMILIESANDTOTAKEADVANTAGEOFOFOTHERLEISUREACTIVITIES. ..........................................................................................5

INSERTLOCALDEMOGRAPHICINFORMATIONFROM CHAMBEROF COMMERCEOROTHERGOVERNMENTALSOURCE. BESURETOINCLUDEPROJECTEDGROWTHPLANSFORTHEMARKET. ..................................................................................................5TARGET MARKET...................................................................................................................................................5WEWILLTARGETTHELOCALBUSINESSESFORBREAKFAST, LUNCH, SNACKANDCATERINGOPPORTUNITIES. THELOCALRESIDENCESWILLBEOURTARGETFORALLOFTHEABOVE, INCLUDINGDINNERANDFUNDRAISING. ..........................................5MARKET NEEDS.....................................................................................................................................................5THISMARKETISNEEDOFAHIGHQUALITY, HEALTHIERALTERNATIVETOFASTFOOD. TROPICAL SMOOTHIE CAFPROVIDESAVASTARRAYOFCHOICESSOTHATOURCUSTOMERSCANEATASHEALTHYASTHEYCHOOSETO. ....................................................5MARKET TRENDS ..................................................................................................................................................5


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(Corporate Name)

WITHTHESOCIO-ECONOMICMAKEUPOFTHISCOMMUNITYSKEWEDTOTHEUPPERENDOFTHESCALE, ITSIMPORTANTTOSTAY RELEVANTTOOURCUSTOMERS. WITHOURFOCUSONINNOVATIONANDFOODANDSMOOTHIECHOICESATVARIOUSPRICEPOINTSWEWILLRESONANTWITHTHISCUSTOMER. ALSO, STAYINGONTOPOFANYHEALTHYFOODTRENDSWILLBRINGANADDEDDIMENSIONTOTHISNEIGHBORHOOD. ..........................................................................................................................5STRATEGIC ALLIANCE.............................................................................................................................................5

LICENSES..........................................................................................................................................................................5ADVERTISINGAND PROMOTION..........................................................................................................................................................................6MARKETING STRATEGY...........................................................................................................................................7COMPETITION ........................................................................................................................................................7DISTINCT COMPETITIVE ADVANTAGES........................................................................................................................7OPERATIONS..........................................................................................................................................................7

PRODUCTS...................................................................................................................................................................8

SMOOTHIES...........................................................................................................................................................8BISTRO SANDWICHES, TOASTED WRAPS, GRILLED FLATBREADS, GOURMET SALADS, AND MORE..........................................8

MANAGEMENT PLAN..............................................................................................................................................8

(OWNERS NAME), PRESIDENT/CEO/GENERAL MANAGER............................................................................................8(INSERTYOURPERSONALBUSINESSBIOSWITHRELEVANTEXPERIENCE. .............................................................................9(NAME), VICE PRESIDENT & OPERATING MANAGER..................................................................................................9

MARKET STRATEGIES..........................................................................................................................................10

MARKET DEFINITION.............................................................................................................................................10COMPETITION.......................................................................................................................................................10(FOLLOWINGPARAGRAPHSAREINCLUDEDASSAMPLEONLYANDSHOULDBERE-WRITTENTOREFLECTYOUROWNCOMPETITIONANALYSIS.)..........................................................................................................................................................10DISTINCT COMPETITIVE ADVANTAGES......................................................................................................................11HIGH QUALITY, INNOVATIVE FOOD & BEVERAGE.......................................................................................................12UNPARALLELED HOSPITALITY ................................................................................................................................13VIBRANT, TROPICAL 10 MINUTE VACATION ............................................................................................................13BUSINESSOF GIVING BACK ...................................................................................................................................13AT TROPICAL SMOOTHIE CAFWEARECOMMITTEDTOCONTRIBUTINGTOWARDAHEALTHIERWAYOFLIFEINTHECOMMUNITIESWHEREWELIVE. WEDOTHISTHROUGHOURFUNDRAISINGPROGRAMTHATALLOFOURCAFESCONDUCT. BUT, ONCEAYEARWECELEBRATE NATIONAL FLIP FLOP DAY (THE 3RD FRIDAYOF JUNE) ANDOFFERAFREE JETTY PUNCHSMOOTHIETOTHEFIRST500 PEOPLEWEARINGFLIPFLOPS. DURINGTHEENTIREMONTHOF JUNEWEARECOMMITTEDTOOURNATIONALCHARITYPARTNERTORAISEAWARENESSANDFUNDSFOROURNATIONALCHARITYPARTNER, CAMP SUNSHINE. SINCEWEBEGANTHISRELATIONSHIPIN 2008, OURFRANCHISECOMMUNITYHASRAISEDMORETHAN $710,000. WWW.CAMPSUNSHINE.ORG. ................................13LOCATION ANALYSIS............................................................................................................................................14

ADVERTISING..........................................................................................................................................................16

KEY ASSETS AND SKILLS.....................................................................................................................................17

INTRODUCTION.....................................................................................................................................................17

OPERATIONAL EXCELLENCE....................................................................................................................................17UNPARALLELED HOSPITALITY ................................................................................................................................17SITE SELECTION...................................................................................................................................................17MANAGEMENT.....................................................................................................................................................17

STAFFING REQUIREMENTS................................................................................................................................19

OBSTACLES TO SUCCESS.....................................................................................................................................19

LOCATION, LOCATION, LOCATION ............................................................................................................................20


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PRODUCT & EXPERIENCE ......................................................................................................................................20MANAGEMENT.....................................................................................................................................................20


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Executive summary

Company Overview(Corporate Name), an S-Corporation formed under the (state) laws will operate

a Tropical Smoothie Caf franchise at (Store Address, City, State, Zip). Thebusiness will target all consumers that are looking for a higher quality, healthier way oflife. The products and experience are attractive to almost every demographic desiring aquick, healthy, and nutritious meal or snack. Our customers can enjoy their menuoptions in our tropical oasis or take it to go with some locations offering drive-thruservice. Online ordering makes this attractive for busy customers as well.

Products

Tropical Smoothie Franchise Development Corp. has developed a provenbusiness system that provides the customer with options for breakfast, lunch, dinnerand snacks. They offer over 35 real fruit smoothies, toasted wraps, bistro sandwiches,grilled flatbreads and gourmet salads. Catering provides another dimension to thisbusiness to drive sales.

Management

(Corporate Name) principal owners, (Store Owners Name(s)) bring acombined total of more than 25 years of significant management-related experienceand more than 30 years of customer service experience to the company. Theirextensive management and customer service experience, in combination with thepopularity and competitive advantage of Tropical Smoothie Caf's products willsignificantly contribute to the company's success.

Financial Projections

Based on a typical new Tropical Smoothie Caf with similar marketdemographics and store size, and a net income (between XX and XX percent),(Corporate Name) estimates first and second year sales projections of $XXXXXX and$XXXXXX, with net income projected at $XXXXXX (XX.X%) and $XXXXX (XX.X%),respectively.

Funds Required

The estimated total funds required to open and operate the desired TropicalSmoothie Caf at (Store Street Address, City, State, Zip), is $XXX,XXX. Theprincipal owners, (Store Owners Name(s)) will contribute $XX,XXX of their own fundsand will acquire additional funds in the form of a Small Business Association (SBA)

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guarantee loan in the amount of $XXX,XXX to purchase equipment, leaseholdimprovements, and provide working capital to start and operate the business.

Low Medium High

Franchise Fee $25,000 $25,000 $25,000Real Estate Broker $0 $2,500 $5,000

Architect $2,500 $6,250 $10,000

Equipment $90,000 $100,000 $110,000

Leasehold Improvements* $100,000 $120,000 $140,000

Signage $7,500 $11,250 $15,000

Uniforms $500 $750 $1,000

Initial Inventory $8,000 $10,500 $13,000

Initial Training Expenses $3,000 $4,000 $5,000

Insurance Deposits $1,000 $2,000 $3,000

Initial Deposits $5,000 $10,000 $15,000

Licenses, Bonding, Permits $1,000 $1,500 $2,000

Legal/Accounting $500 $1,250 $2,000

Grand Opening Marketing $2,000 $2,000 $2,000

Subtotal $246,000 $297,000 $348,000

Additional Funds: Working Capital (3-6 Months) $30,000 $37,500 $45,000

* Leasehold improvement costs may be greater for various reasons, such as a thesize of the location and the local market conditions, which will affect your over alltotal investment.

** Based on a 1600 square foot model.

*** Other expenses may include, but are not limited to: real estate broker, uniforms,initial training, insurance deposits and permits, legal and accounting fees.

**** Franchisee should also set aside additional funds for working capital.

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(Corporate Name)

Introduction

Business Description(Corporate Name) will operate a Tropical Smoothie Caf franchise located at

(Store Street Address, City, State, Zipcode), targeting consumers that are lookingfor high quality, innovative food and beverage experience. Their menu consists ofmore than 35 real fruit smoothies blended on to order along with a wide array ofinnovative food products to fit everyones taste, dietary needs and budgets. Toastedwraps, bistro sandwiches, grilled flatbreads, gourmet salads and more made with thehighest quality ingredients and innovative flavor profiles to tempt their tastebuds.

Business Formation

(Corporate Name) is a Corporation formed under (state) laws and expects toopen its first Tropical Smoothie Caf on or about (expected opening date). Thecompany will employ approximately 10 - 15 people, including Mr. and Mrs. (OwnersName), the principal owners and managers.

Mission

We will give consumers a healthier choice by providing high quality, innovativefood and beverage products delivered with unparalleled hospitality that they deservethroughout America and worldwide.

We will do this through a community of crewmembers, managers, franchisees,area developers, vendors and headquarter staff that will work together as stakeholdersto serve their customers and contribute toward a healthier way of life in thecommunities where they live.

Goals

As a Tropical Smoothie Caf franchise in the (City, State) area, our primary goalis establish a strong clientele that will make Tropical Smoothie Caf the consumer'snumber one choice for smoothies, wraps, sandwiches, flatbreads and salads. With ourbroad menu offerings and distinct dayparts, we will provide a healthy choice for ourcustomers through in store dining, take out and catering. We will create an experience

that makes for a VERY satisfied and loyal customer that comes back often andrecommends us to others. We are committed to be part of the community and assistour local charities reach their goals through a great fundraising program.

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Vision

Our vision is to make Tropical Smoothie Caf THE CHOICE for a higher quality,healthier way of life.

Daily Purpose

We will focus on increasing brand awareness, growing same store sales, andcontributing toward greater profitability and improving two-way communication for thebenefit of all the stakeholders.

Guiding PrinciplesDo the Right ThingBring Out the Best in Each OtherCommitment to Wow

All brands need to have a foundation upon which to build. At Tropical Smoothie Cafthese Guiding Principles along with our Forecasting Our Future document helps usmake decisions that are in the best interest of all parties and help build the brand andwork toward creating a higher asset value for the franchisees and all stakeholders.

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Marketing Analysis Summary (Example)Our market consists of both businesses and residences in our 3-5 mile trade area.There are about 18,000 people living and working in this area. IF we can convince just15% of those people to buy our sandwiches twice a month, well sell 65,000 sandwiche

to that market alone. Add 20% to that amount to the additional business we willgenerate by catering and fundraising and those two segments alone will buy 138,000meals.

The demographics in the residences have shitfted from traditional households (twoparents with children) to more non-traditional households; as a result, many adults feelthey have less free time. Consumers report that they are eating out more often to freeup time normally spent cooking and use that time to enjoy their families and to takeadvantage of of other leisure activities.

Insert local demographic information from Chamber of Commerce or other

governmental source. Be sure to include projected growth plans for the market.

Target MarketWe will target the local businesses for breakfast, lunch, snack and cateringopportunities. The local residences will be our target for all of the above, includingdinner and fundraising.

Market NeedsThis market is need of a high quality, healthier alternative to fast food. TropicalSmoothie Caf provides a vast array of choices so that our customers can eat ashealthy as they choose to.

Market TrendsWith the socio-economic make up of this community skewed to the upper end of thescale, its important to stay relevant to our customers. With our focus on innovation andfood and smoothie choices at various price points we will resonant with this customer.Also, staying on top of any healthy food trends will bring an added dimension to thisneighborhood.

Strategic Alliance

Tropical Smoothie Franchise Development Corp. has developed a provenfranchise system and establishes competitive pricing and reliable distribution for more

than 275 franchise stores in operation and/or development in 34 states.

Licenses

(Corporate Name) will obtain all necessary and required licenses to operate aTropical Smoothie Caf store in (City, State).

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Pricing Product PolicyTropical Smoothie Franchise Development Corp. establishes recommended

pricing for its products to be competitive in their respective category and marketplace.

Advertising and Promotion

To support its start-up efforts, (Corporate Name) will use popular media, suchas, website, social media, print (FSI, coupons, direct mail, fliers etc.), radio, along withpromotional free product samples to advertise its business. Tropical SmoothieFranchise Development Corp. requires a minimum of three percent of gross salesrevenue for promotion and advertising. One percent of gross sales revenue will beprovided to Tropical Smoothie Franchise Development Corp. for national advertisingand two percent of gross sales revenue will be dedicated for local promotion andadvertising. (Corporate Name) will allocate a minimum of $2000 toward advertising

during the company's grand opening period.

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Marketing Strategy

The companys marketing strategy is to promote Tropical Smoothie Caf as ahigh quality, innovative fast casual dining place with a tropical island vibe. All of ourfood and smoothies are made to order. You can enjoy the laid back tropicalenvironment by dining inside or take it to go. As an added convenience you can orderonline and it will be waiting for you when you arrive. Insert drive-thru information here ifapplicable.

Competition

There is currently NO DIRECT competition located within a X-mile radius ofTropical Smoothie Caf's location. We have created a niche category so that there isno other business selling all similar products at one location. There are XX businesses

within the market area, which sell smoothies, specialty sandwiches, and wraps.However, none of these businesses sell all these products at the same location.Although Tropical Smoothie Caf will compete with these businesses at some level,these businesses are considered indirect competition to Tropical Smoothie Caf.

Distinct Competitive Advantages

(Corporate Name) differentiates and positions its business from the competitionwith its high quality and innovative food and beverage products.The variety of productsthat we offer and the portions are ideal for almost any taste or budget. While ourproduct is of the highest quality, its the unparalleled hospitality that we hang our hat for

attracting and retaining our customers. We realize that they have limited disposableincome and we need to earn their business.

Operations

(Corporate Name) will operate its Tropical Smoothie Caf during the hoursX:00am to XX:00pm seven days a week, except Thanksgiving Day and Christmas Day.(Owners Name) will be the general manager and (name) will be the operatingmanager during the first three years of operations. The company will hire an assistantmanager and enough (approximately 12-15) additional part-time employees through

local workforce to supplement staffing requirements. All employees will be properlyand adequately trained in store operations, including smoothie and food productpreparation procedures, store cleanliness, and customer unparalleled hospitalitystandards.

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PRODUCTS

Smoothies

Tropical Smoothie Caf delivers the best real fruit smoothies. We make eachsmoothie to order and there is a variety all of them delicious, refreshing, andnutritious drinks. Most of our smoothies are made with one or more fruits such asstrawberries, banana, orange, peaches, pineapple, blueberries raspberries, acai,pomegranate, goji cranberry, kiwi, and mango and blended to perfection with ice andTurbinado sugar or Splenda upon request. We also offer some great dessert smoothiesif youre in the mood to indulge. These are made with indulgent ingredients like whitechocolate, peanut butter and caramel.

Bistro Sandwiches, Toasted Wraps, Grilled Flatbreads, Gourmet

Salads, and More

Tropical Smoothie Caf's bistro sandwiches, toasted wraps, grilled flatbreadsand gourmet salads are a breakfast, lunch and dinner staple appealing to the customerthat desires a delicious and nutritious alternative meal to the typical fast foodhamburger and fries. Tropical Smoothie Cafs food offerings are made to order andwith the freshest and finest ingredients.

Management Plan

(Corporate Name) principal owners, (names) bring a combined total ofapproximately XX years of significant management-related experience and more thanXX years of customer service experience to the company.

Mr. (name) is the Chief Executive Officer (CEO) and general manager for(Corporate Name). (Name) is the company's vice president and will act as operatingmanager for the business.

To assist in management responsibilities and to plan for future expansion efforts,(Corporate Name) will to hire an assistant manager to assume operating managersduties and responsibilities during his/her absence. Tropical Smoothie Caf store will beunder constant management supervision at all times by a manager or assistantmanager to ensure quality control of product and customer service satisfaction.

(Owners Name), President/CEO/General Manager

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(Corporate Name)

(Owners Name) brings extensive management and customer servicerelated experience to (Corporate Name) including more than 20 years of business,administration, and personnel management experience while employed at AcmeWidget Company, and three years experience as manager of two fast food chicken

restaurants. His primary duties as CEO include:

Primary point of contact for all business transactions, including suppliers,Tropical Smoothie Franchise Development, Corp., lending institutions, andfederal, state, county, and city agencies. Management of business records and financials. Ordering all supplies. Assuming primary operating managers duties and responsibilities duringany periods of absence.

(Insert your personal business bios with relevant experience.

(NAME), Vice President & Operating Manager

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Market Strategies

Market Definition

Insert smoothie growth here.

Tropical Smoothie Caf's will target consumers that are looking for a highquality, innovative food and beverage experience. With a menu of more than 35 realfruit smoothies blended to order along with a wide array of innovative food products tofit everyones taste, dietary needs and budgets. Toasted wraps, bistro sandwiches,grilled flatbreads, gourmet salads and more made with the highest quality ingredientsand innovative flavor profiles to tempt their taste buds. The business will offer itsproducts to be enjoyed in the virbrant tropical environement or to go. Online orderavailable as well.

The majority of Tropical Smoothie Caf's customers will consists of drive-bytraffic on (main road name) and business individuals and residents working and/orliving near this location.

Competition

(Following paragraphs are included as sample only and should be re-written to reflect your own competition analysis.)

Currently, there is NO DIRECT competition (i.e., Planet Smoothie, SmoothieKing, Panera, Subway, etc.) located in Tropical Smoothie Caf's market area. That is,there is no other business similar to Tropical Smoothie Caf selling smoothies, wraps,specialty sandwiches, salads, flatbreads, etc. one location. There are other fast-foodrestaurants in Tropical Smoothie Caf 's market area such as Taco Bell, Chik-Fil-A,Burger King, Papa John's Pizza, Boston Market, etc. However, these businesses donot offer similar products as Tropical Smoothie Caf .Therefore, no specific competitionanalysis was conducted for these businesses.

There are two businesses within the market area, which sell similar menuofferings to Tropical Smoothie Caf. Although these businesses are considered "in-

direct" competition to Tropical Smoothie Caf, a comprehensive competition analysiswas conducted due to their similar products and close proximity to Tropical SmoothieCaf.

Schlotzsky's Deli . Schlotzsky's Deli is located four blocks southwest of our

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location. This major franchise specializes in pita-bread based sub-sandwiches.Schlotzsky's Deli currently does not offer gourmet wraps, smoothie, or gourmetcoffee products. Schlotzsky's Deli has a very steady lunch business seven days aweek due to close proximity to Virginia Beach's largest office complex (one

Columbus Center, a 11 story building employing more than 1,200 people), otheroffice/retail businesses nearby, and Pembroke Mall, one of the city's major shoppingmalls. According to Divaris Real Estate, Inc., this store is the franchise's highestgrossing unit, reporting annual gross sales in excess of $900K. It is our belief thatSchlotzsky's Deli's unusual high sales volume is based primarily on convenience tothe business/office customer rather than product quality and service. (CorporateName) expects Schlotzsky's Deli to be a primary competitor for lunch and dinner.However, given the high demand for convenient, nutritious, and healthy food anddrink products, and limited supply within the market area, (Corporate Name)believes Schlotzsky's Deli and Tropical Smoothie Caf will complement each other,providing customers a daily choice for their food and drink consumption needs.Through advertising and promotions, Tropical Smoothie Caf expects to earn aminimum of 15 percent of Schlotzsky's Deli market share during the first year ofoperations.

Starbuck's Coffee . Starbuck's Coffee, the country's leading gourmet coffeefranchise, is located approximately three blocks west of our Tropical Smoothie Caflocation. Starbuck's Coffee has a very steady business throughout the day, sellingtheir own blend of coffee and espresso products. Like Schlotsky's Deli, Starbuck'sCoffee reports above average sales due to their superior location (i.e., walkingdistance for office employees and close proximity to other businesses, schools,residential area, etc.) Their steady business and high sales volume confirms a highdemand for gourmet coffee products in the market area. There is a satellite

Starbuck's Coffee Caf located in the Barnes and Knoble store located in the sameshopping center as Schlotzsky's Deli. According to Divaris Real Estate, Inc., thissatellite caf produces annual gourmet coffee sales in excess of $400K. TropicalSmoothie Caf serves Royal Cup blend coffee products that are equal to or betterthan that of Starbuck's Coffee. However, due to Starbuck's Coffee nationallyrecognized name and established clientele, we do not envision gaining more than15 percent of their market share during the first year of operations. Instead, we willaggressively pursue building our own gourmet coffee clientele through marketingand advertisement to local businesses, residents, and businessmen/women.

Distinct Competitive Advantages

(Corporate Name) has several distinct advantages over the competition,including high quality, innovative food and beverages, unparalleled hospitality, and avibrant, tropical atmosphere that provides for a 10 minute vacation.

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High Quality, Innovative Food & Beverage

Tropical Smoothie Caf is proud to offering award-winning, high quality,

innovative food and beverages. In 2010 we were one of only 8 restaurants in thecountry to be awarded the distinguished Menu Masters award conferred by NationsRestaurant News and Ventura Foods. We use the freshest, highest quality and mostinnovativeingredients we can find. For our smoothies, we offer real fruit, individuallyquick frozen (IQF), to ensure freshness and flavor. Our fruits are not packed in sugar,nor prepared with processed sugar. We use turbinado raw sugar, a naturalsweetener that retains its vitamins and minerals. Our smoothies are blended at thetime or order not pre-blended, giving the customer a true smoothie, not an iced drink.Our smoothies contain no powder drink mixes, but are blended with a well-definedrecipe of exact measured portions of fruits and supplements. High-powered blenderswith technogically advanced components are used to create the perfectly smooth

texture of our drinks.

Our food products (toasted wraps, bistro sandwiches, grilled flatbreads, gourmetsalads) are also prepared with fresh ingredients at time of order to ensure quality andfreshness. Thats one reason we are passionate about using sampling as a marketingtactic. Once a customer tastes our products, they will not only return often, but they willrecommend us to others. The perfect recipe for a successful business.

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Unparalleled Hospitality

At Tropical Smoothie Caf we believe that our customers deserve unparalleledhospitality. Not just customer service.

Our mantra for delivering this is conveyed in what we call the What You Get PaidFor theory:

I get paid to create an experience that makes for a VERY satsifed and loyalcustomer that comes back often and recommends us to others.

We have comprehensive training for our staff so that can understand all theoperational necessities to run a great business and spend time creating experiences forour customers.

Vibrant, Tropical 10 Minute Vacation

The minute you set foot in a Tropical Smoothie Caf you will feell the vibe and

want to kick off your shoes and don your favorite pair of flip flops. The colors, themusic and products all convey that laid back tropical island feel that will make you feellike youre on a 10 minute vacation. With outdoor caf seating all you need is sandindoors.

Business of Giving BackAt Tropical Smoothie Caf we are committed to contributing toward a healthier

way of life in the communities where we live. We do this through our fundraisingprogram that all of our Cafes conduct. But, once a year we celebrate National Flip FlopDay (the 3rd Friday of June) and offer a free Jetty Punch smoothie to the first 500people wearing flip flops. During the entire month of June we are committed to ournational charity partner to raise awareness and funds for our national charity partner,Camp Sunshine. Since we began this relationship in 2008, our franchise communityhas raised more than $710,000. www.campsunshine.org.

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Location Analysis

Forum Analytics reviews each site chosen by the computer model which goesthrough extensive trade area reviews. Each site is reviewed by a team at the corporate

office to help ensure that nothing is left to chance when it comes to choosing your TSClocation.

Tropical Smoothie Cafe has partnered with Windsor Real Estate to ensure a realestate process which has the ability to make objective real estate decisions versussubjective real estate decisions. This is to help determine that your location is being setup for success.

Through intense market and location analysis, (Corporate Name) determined its

first Tropical Smoothie Caf would be best located at (Store Street Address, City,State). Comprehensive market analysis conducted by (Owners Name) indicated this

prime location provides all the necessary qualities required for a successful andprofitable business. Additionally, the high traffic volume (more than XX,XXX cars perday) on (Street), and outstanding visibility of the business from the street willundoubtedly help increase franchise recognition as additional Tropical Smoothie Cafsare opened throughout the (market name) area.

Tropical Smoothie Caf is located in (Name) Shopping Center, (XXXXbound) on(Street Name/Intersection). Major crossroads near (Shopping Centers Name) are(Street Names). (Street name) provides easy and convenient access to majorshopping malls, automobile dealerships, large residential communities, and (list anyother major destination point, i.e., beaches). There are more than XX,XXXXdaytime employees located within a two-mile radius of our location.

(Shopping Centers Name) Shopping Center is a XXX,XXX sq. ft GrossLeasing Area (GLA) center with XXX main anchors, (name/description of anchors).the street from our location.) The center contains a variety of consumer businessretailers:

Include a complete list of all tenants in your shopping center. Following list is asample.

TenantVerizon (telephone services)

Cruise Holidays (travel agency)Hair Magic (Salon)The Soccer StoreNorfolk FloristHousehold FinanceH&R Block (tax advisor)

Tropical Smoothie Caf (1,200 sq. ft)Harris Camera

Weight WatchersShun Xing ChineseParty CityTenantGreat American Bunk Beds

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Farm FreshFitness Resource EquipmentAmes TuxedosInfinitech Communications

Hair Crafters (Salon)Hollywood Nails

Weight Loss Forever

Fant Shoe RepairDomino's Pizza

Chilli's RestaurantBoston Market Restaurant

Total GLA: 120, 970 square feet

(Shopping centers name) provides outstanding ingress and egress from(identify street names) and provides excellent parking for customers and employees.Due to its superb location, curb appeal, and tenant composition, a steady flow ofcustomers is maintained within (shopping centers name) during normal businesshours. The majority of tenants are open for business from X:XXam - X:XXpm(Monday through Saturday) and X:XXam X:XXpm (Sunday). Tropical SmoothieCaf's hours of operation are X:XXam to X:XXpm, seven days a week, exceptChristmas Day and Thanksgiving Day.

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(Corporate Name)

Advertising

To support its start-up (and future expansion) efforts, (Corporate Name) will usepopular media, such as, website, social media, print (FSI, coupons, direct mail, fliers,etc.) radio along with promotional free product samples to jnewspapers, and directmailing coupons/flyers, along with promotional free product samples to advertise itsbusiness and products.

Tropical Smoothie Franchise Development Corp. requires a minimum of three

percent of gross sales revenue for promotion and advertising. One percent of grosssales revenue will be provided to Tropical Smoothie Franchise Development Corp. fornational advertising and expansion efforts, and two percent of gross sales revenue willbe dedicated for local promotion and advertising.

(Corporate Name) intends to allocate a minimum of $2000 for advertising andpromotion during its grand opening.It is our philosophy that Cafs that open big stay bigand will be have our Grand Opening right after we open for business. This will includegrand opening specials, prizes, local media, radio remotes, public relations includingproduct drops to local media outlets, radio, newspaper, and flier advertisements.

The primary source of advertising for the business will come from email, socialmedia, text clubs, sampling, fundraising, direct mail and home delivery of couponadvertisements. These coupons will consist of various specials and discountsapproved by Tropical Smoothie Franchise Development, Corp.

A secondary source of advertising will come from local sponsorship of varioussupport groups. For example, sponsorship of a local Little League team and otheryouth groups. (Corporate Name) will allocate a minimum of $500 annually towardsthis advertising strategy.

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(Corporate Name)

Key Assets and Skills

IntroductionTo be successful in this business, (Corporate Name) must possess key assets

and skills in four major areas:

Operational Excellence Unparalleled Hospitality Site Selection Management

Operational Excellence

At Tropical Smoothie Caf, we take pride in offering the highest quality and mostinnovative products in a clean environment to our customers. All of our products aremade to order and we pride ourselves in the standards for quality and cleanliness. Weare confident our product and environment will exceed our customer (and competition)expectations.

Unparalleled Hospitality

Our customers deserve unparalleled hospitality, not just customer service. Theychoose to give us a portion of their disposable income in return for an experience andhigh quality products in a clean, tropical environment. We get paid to create

experiences that make for a VERY loya and satisfied customer that comes back oftenand recommends us to others.

Site Selection

Comprehensive market analysis conducted by (Owners Name) and reviewedby a team at Tropical Smoothie Franchise Development Corporation indicates ourprime location provides all the necessary qualities required for a successful business.Specifically, Tropical Smoothie Caf's location possesses high traffic volume, easyingress and egress, clear visibility from the street, close proximity to (identify major

destination/anchors here such as city's central library and Bally's FitnessCenter, and large residential and business communities adjacent to our location.

Management

(Corporate Name) principal owners, (owners names) bring a combined total of

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(Corporate Name)

more than XX years of significant management-related experience and more than XXyears of customer service experience to the company.

(Following paragraph is included as sample only and should be re-written to

reflect your own background/experience.)

Both individuals have succeeded in every challenge they have encountered.(name) achieved the highest enlisted rank in the military (E9) after only 17 years ofservice and successfully managed two fast food restaurants at the age of 17-19 yearsold. (name) outstanding management abilities, friendly personality, and ability toprovide unparalleled customer service to each an every individual she encounters willundoubtedly contribute to (Corporate Name)'s success.

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(Corporate Name)

Staffing Requirements

Job TitleGeneral Manager

Salary: None for two years

Job Description: Primary point of contact for all business transactions, includingsuppliers, Tropical Smoothie Franchise Development Corp., lending institutions, andfederal, state, county, and city agencies. Responsible for proper management of allbusiness records, books, and financials. Orders all supplies. Assumes primaryoperating manager's duties and responsibilities during any periods of absence.

Job Title: Operations Manager Salary: $30,000

Job Description: Responsible for the overall operations management of the store,including personnel management, training, payroll, cleanliness of facility, and any otherduties which are required. Supervises all employees. Assumes general manager'sduties and responsibilities during any periods of absence.

Job Title: Assistant Manager Salary: $18,000

Job Description: Responsible for the overall management of the store duringgeneral manager's and/or operations manager's absence. Ensures each customer isprovided with the highest quality and freshness of product and customer satisfaction is

achieved. Supervises employees.

Job Title: Smoothie and Food Specialist

Job Description: Responsible for welcoming customers, taking orders, preparingorders, and finalizing sales. Performs necessary preparation and cleaning activitiesbefore, during and after store business hours to ensure highest level of productfreshness and store cleanliness.

Wages: Minimum wage per hour for first three months of employment. Adjustment to

wage based on job performance will be made after three-month evaluation period.

Obstacles to Success

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(Corporate Name)

There are inherent obstacles to success with any new business venture.However, it is our belief that we have significantly reduced all associated risks byproactively identifying the most prominent obstacles associated with our business typeand implemented appropriate safeguards.

Historically, most new businesses fail due to one or more of the followingreasons. We feel strongly that our business will not fail due to any of these reasons asstated below:

Location, location, location

Tropical Smoothie Cafs strategic partners, Forum Analytics and WindsorRealty work with our franchisees to determine the best location in each marketplacebased on statistical data anda their vast experience in securing great locations. Beforea lease is signed or a location secured this needs to be reviewed by a team of Tropical

Smoothie Caf executives. This is the value of being in a proven system rather than anindependent operator.

Product & Experience

The relevance of the high quality and innovative products provide a competitiveedge in todays marketplace. Tropical Smoothie Cafs focus on delivering experiencesand not just commodity products differentiates us and delivers a niche category wherethere is little competion.

Management

(Corporate Name) management team, (names) bring more than XX years ofmanagement experience to the company. (names) has received several personalcommendations reflecting their personnel and operations management abilities, andboth are committed to providing the best possible product and service to the customersas well as building a cohesive team of employees. This mitigates the risk of failure dueto experience.

Month Day, 201_

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(Corporate Name)

Dear Mr(s). __________:

The attached Business Plan template and Breakeven Analysis spreadsheet are being deliveredto you in connection with your stated interest in applying for a franchise with Tropical Smoothie Franchise

Development Corporation (the Company / TSC). We anticipate that your preparation of the BusinessPlan will assist you in obtaining the financing you have concluded will be necessary to develop yourTropical Smoothie Caf. As we noted in the Franchise Disclosure Document, a copy of which youalready received, the Company does not provide or authorize its sales persons to furnish to itsprospective Franchisees any oral or written information concerning the actual or potential sales, costs,income or profits of a Tropical Smoothie Caf business. Such information is commonly known asEarnings Claims. Instead, we encourage you, as we do with all our prospective Franchisees, to speakwith existing Tropical Smoothie Cafe franchise owners to obtain information and answers about theoperations and financial results of a Tropical Smoothie Caf business.

It is anticipated that you will require the assistance of existing Tropical Smoothie Cafe franchiseowners to prepare certain sections of the Business Plan, including the section on sales and net incomeprojections. In that regard, we would like you to acknowledge and confirm, by your signature below, thatthe sales and net income projections that you indicate in your Business Plan will be developed frominformation provided solely by existing Tropical Smoothie Cafe franchise owners and will not be obtainedfrom any officer, director, employee, agent or representative of the Company. You further acknowledgethat the Company does and will not represent, warrant or guarantee that you will be able to attain theoperating results indicated in your Business Plan. You should not consider this information as the actualor potential sales, expenses or net income that you will realize from owning and operating a TropicalSmoothie Cafe. Your individual financial results are likely to differ from the financial results presented.

Please acknowledge the foregoing by signing in the space provided below and returning to TSCvia fax at (850) 269-9845 at your earliest convenience.

Sincerely,

Charles WatsonVice President, Franchise Development

Acknowledged and Agreed:

_____________________________________

Print Name:___________________________

Date: ________________________________

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Date post:	08-Apr-2018
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TSC Business Plan Template

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