(Corporate Name)

(Corporate Name)
Business Plan
(Date)

(Owner’s Name)
President/CEO
(Store Street Address)
(City, Zipcode)

(Telephone)
(Corporate Name)

Table of Contents
(CORPORATE NAME)..............................................................................................................................................1
TABLE OF CONTENTS.............................................................................................................................................2

EXECUTIVE SUMMARY..........................................................................................................................................1
COMPANY OVERVIEW..............................................................................................................................................1
PRODUCTS ............................................................................................................................................................1
MANAGEMENT.......................................................................................................................................................1
FINANCIAL PROJECTIONS..........................................................................................................................................1
FUNDS 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...........................................................................................................................................3
BUSINESS FORMATION.............................................................................................................................................3
MISSION...............................................................................................................................................................3
GOALS.................................................................................................................................................................3
VISION.................................................................................................................................................................4
DAILY PURPOSE.....................................................................................................................................................4
WE WILL FOCUS ON INCREASING BRAND AWARENESS , GROWING SAME STORE SALES , AND CONTRIBUTING TOWARD GREATER
PROFITABILITY AND IMPROVING TWO-WAY COMMUNICATION FOR THE BENEFIT OF ALL THE STAKEHOLDERS . ...............................4
GUIDING PRINCIPLES ...............................................................................................................................................4
MARKETING ANALYSIS SUMMARY (EXAMPLE).............................................................................................................5
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 JUST 15% OF THOSE PEOPLE TO BUY OUR SANDWICHES TWICE A
MONTH, WE’LL SELL 65,000 SANDWICHE TO THAT MARKET ALONE. ADD 20% TO THAT AMOUNT TO THE ADDITIONAL BUSINESS
WE WILL GENERATE BY CATERING AND FUNDRAISING AND THOSE TWO SEGMENTS ALONE WILL BUY 138,000 MEALS . .................5
THE DEMOGRAPHICS IN THE RESIDENCES HAVE SHITFTED FROM TRADITIONAL HOUSEHOLDS (TWO PARENTS WITH CHILDREN) TO
MORE NON-TRADITIONAL HOUSEHOLDS ; AS A RESULT , MANY ADULTS FEEL THEY HAVE LESS FREE TIME. CONSUMERS REPORT THAT
THEY ARE EATING OUT MORE OFTEN TO FREE UP TIME NORMALLY SPENT COOKING AND USE THAT TIME TO ENJOY THEIR FAMILIES
AND TO TAKE ADVANTAGE OF OF OTHER LEISURE ACTIVITIES . ..........................................................................................5
INSERT LOCAL DEMOGRAPHIC INFORMATION FROM CHAMBER OF COMMERCE OR OTHER GOVERNMENTAL SOURCE. BE SURE TO
INCLUDE PROJECTED GROWTH PLANS FOR THE MARKET. ..................................................................................................5
TARGET MARKET...................................................................................................................................................5
WE WILL TARGET THE LOCAL BUSINESSES FOR BREAKFAST, LUNCH, SNACK AND CATERING OPPORTUNITIES . THE LOCAL
RESIDENCES WILL BE OUR TARGET FOR ALL OF THE ABOVE, INCLUDING DINNER AND FUNDRAISING . ..........................................5
MARKET NEEDS.....................................................................................................................................................5
THIS MARKET IS NEED OF A HIGH QUALITY, HEALTHIER ALTERNATIVE TO FAST FOOD. TROPICAL SMOOTHIE CAFÉ PROVIDES A VAST
ARRAY OF CHOICES SO THAT OUR CUSTOMERS CAN EAT AS HEALTHY AS THEY CHOOSE TO. ....................................................5
MARKET TRENDS ..................................................................................................................................................5
(Corporate Name)

WITH THE SOCIO-ECONOMIC MAKE UP OF THIS COMMUNITY SKEWED TO THE UPPER END OF THE SCALE, IT’S IMPORTANT TO STAY
RELEVANT TO OUR CUSTOMERS . WITH OUR FOCUS ON INNOVATION AND FOOD 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 THIS NEIGHBORHOOD . ..........................................................................................................................5
STRATEGIC ALLIANCE.............................................................................................................................................5

LICENSES
..........................................................................................................................................................................5
ADVERTISING AND PROMOTION
..........................................................................................................................................................................6
MARKETING STRATEGY...........................................................................................................................................7
COMPETITION ........................................................................................................................................................7
DISTINCT COMPETITIVE ADVANTAGES........................................................................................................................7
OPERATIONS..........................................................................................................................................................7
PRODUCTS...................................................................................................................................................................8
SMOOTHIES...........................................................................................................................................................8
BISTRO SANDWICHES , TOASTED WRAPS , GRILLED FLATBREADS , GOURMET SALADS, AND MORE..........................................8
MANAGEMENT PLAN..............................................................................................................................................8
(OWNER ’S NAME), PRESIDENT/CEO/GENERAL MANAGER............................................................................................8
(INSERT YOUR PERSONAL BUSINESS BIOS WITH RELEVANT EXPERIENCE. .............................................................................9
(NAME), VICE PRESIDENT & OPERATING MANAGER..................................................................................................9
MARKET STRATEGIES..........................................................................................................................................10
MARKET DEFINITION.............................................................................................................................................10
COMPETITION.......................................................................................................................................................10
(FOLLOWING PARAGRAPHS ARE INCLUDED AS SAMPLE ONLY AND SHOULD BE RE-WRITTEN TO REFLECT YOUR OWN COMPETITION
ANALYSIS .)..........................................................................................................................................................10
DISTINCT COMPETITIVE ADVANTAGES......................................................................................................................11
HIGH QUALITY, INNOVATIVE FOOD & BEVERAGE.......................................................................................................12
UNPARALLELED HOSPITALITY ................................................................................................................................13
VIBRANT, TROPICAL 10 MINUTE VACATION ............................................................................................................13
BUSINESS OF GIVING BACK ...................................................................................................................................13
AT TROPICAL SMOOTHIE CAFÉ WE ARE COMMITTED TO CONTRIBUTING TOWARD A HEALTHIER WAY OF LIFE IN THE COMMUNITIES
WHERE WE LIVE. WE DO THIS THROUGH OUR FUNDRAISING PROGRAM THAT ALL OF OUR CAFES CONDUCT . BUT, ONCE A YEAR WE
CELEBRATE NATIONAL FLIP FLOP DAY (THE 3RD FRIDAY OF JUNE) AND OFFER A FREE JETTY PUNCH SMOOTHIE TO THE FIRST
500 PEOPLE WEARING FLIP FLOPS . DURING THE ENTIRE MONTH OF JUNE WE ARE COMMITTED TO OUR NATIONAL CHARITY PARTNER
TO RAISE AWARENESS AND FUNDS FOR OUR NATIONAL CHARITY PARTNER , CAMP SUNSHINE. SINCE WE BEGAN THIS RELATIONSHIP
IN 2008, OUR FRANCHISE COMMUNITY HAS RAISED MORE THAN $710,000. WWW.CAMPSUNSHINE. ORG. ................................13
LOCATION ANALYSIS............................................................................................................................................14
ADVERTISING..........................................................................................................................................................16

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

INTRODUCTION.....................................................................................................................................................17
OPERATIONAL EXCELLENCE....................................................................................................................................17
UNPARALLELED HOSPITALITY ................................................................................................................................17
SITE SELECTION...................................................................................................................................................17
MANAGEMENT.....................................................................................................................................................17
STAFFING REQUIREMENTS................................................................................................................................19

OBSTACLES TO SUCCESS.....................................................................................................................................19
LOCATION, LOCATION, LOCATION ............................................................................................................................20
(Corporate Name)

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

MANAGEMENT.....................................................................................................................................................20
(Corporate Name)

Executive summary
Company Overview

(Corporate Name), an S-Corporation formed under the (state) laws will operate
a Tropical Smoothie Café franchise at (Store Address, City, State, Zip). The
business will target all consumers that are looking for a higher quality, healthier way of
life. The products and experience are attractive to almost every demographic desiring a
quick, healthy, and nutritious meal or snack. Our customers can enjoy their menu
options in our tropical oasis or take it to go with some locations offering drive-thru
service. Online ordering makes this attractive for busy customers as well.
Products
Tropical Smoothie Franchise Development Corp. has developed a proven
business system that provides the customer with options for breakfast, lunch, dinner
and snacks. They offer over 35 real fruit smoothies, toasted wraps, bistro sandwiches,
grilled flatbreads and gourmet salads. Catering provides another dimension to this
business to drive sales.

Management
(Corporate Name) principal owners, (Store Owner’s Name(s)) bring a
combined total of more than 25 years of significant management-related experience
and more than 30 years of customer service experience to the company. Their
extensive management and customer service experience, in combination with the
popularity and competitive advantage of Tropical Smoothie Café's products will
significantly contribute to the company's success.

Financial Projections
Based on a typical new Tropical Smoothie Café with similar market
demographics 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 Tropical
Smoothie Café at (Store Street Address, City, State, Zip), is $XXX,XXX. The
principal owners, (Store Owner’s Name(s)) will contribute $XX,XXX of their own funds
and will acquire additional funds in the form of a Small Business Association (SBA)

1
(Corporate Name)

guarantee loan in the amount of $XXX,XXX to purchase equipment, leasehold

improvements, and provide working capital to start and operate the business.

Low Medium High

Franchise Fee $25,000 $25,000 $25,000
Real Estate Broker $0 $2,500 $5,000
Architect $2,500 $6,250 $10,000
Equipment $90,000 $100,000 $110,000
LeaseholdImprovements* $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 TrainingExpenses $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
GrandOpeningMarketing $2,000 $2,000 $2,000
Subtotal $246,000 $297,000 $348,000
Additional Funds: WorkingCapital (3-6Months) $30,000 $37,500 $45,000
Totals $276,000 $334,500 $393,000
* 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.

** 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.

2
(Corporate Name)

Introduction
Business Description
(Corporate Name) will operate a Tropical Smoothie Café franchise located at
(Store Street Address, City, State, Zipcode), targeting consumers that are looking
for high quality, innovative food and beverage experience. Their menu consists of
more than 35 real fruit smoothies blended on to order along with a wide array of
innovative food products to fit everyone’s taste, dietary needs and budgets. Toasted
wraps, bistro sandwiches, grilled flatbreads, gourmet salads and more made with the
highest quality ingredients and innovative flavor profiles to tempt their tastebuds.

Business Formation
(Corporate Name) is a Corporation formed under (state) laws and expects to
open its first Tropical Smoothie Café on or about (expected opening date). The
company will employ approximately 10 - 15 people, including Mr. and Mrs. (Owner’s
Name), the principal owners and managers.

Mission

We will give consumers a healthier choice by providing high quality, innovative

food and beverage products delivered with unparalleled hospitality that they deserve
throughout 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 stakeholders
to serve their customers and contribute toward a healthier way of life in the
communities where they live.

Goals
As a Tropical Smoothie Café franchise in the (City, State) area, our primary goal
is establish a strong clientele that will make Tropical Smoothie Café the consumer's
number one choice for smoothies, wraps, sandwiches, flatbreads and salads. With our
broad menu offerings and distinct dayparts, we will provide a healthy choice for our
customers 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 and
recommends us to others. We are committed to be part of the community and assist
our local charities reach their goals through a great fundraising program.

3
(Corporate Name)

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

Daily Purpose

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

Guiding Principles
Do the Right Thing
Bring Out the Best in Each Other
Commitment to Wow

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

4
(Corporate Name)

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 just
15% of those people to buy our sandwiches twice a month, we’ll sell 65,000 sandwiche
to that market alone. Add 20% to that amount to the additional business we will
generate by catering and fundraising and those two segments alone will buy 138,000
meals.

The demographics in the residences have shitfted from traditional households (two
parents with children) to more non-traditional households; as a result, many adults feel
they have less free time. Consumers report that they are eating out more often to free
up time normally spent cooking and use that time to enjoy their families and to take
advantage 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 Market
We will target the local businesses for breakfast, lunch, snack and catering
opportunities. The local residences will be our target for all of the above, including
dinner and fundraising.

Market Needs
This market is need of a high quality, healthier alternative to fast food. Tropical
Smoothie Café provides a vast array of choices so that our customers can eat as
healthy as they choose to.

Market Trends
With the socio-economic make up of this community skewed to the upper end of the
scale, it’s important to stay relevant to our customers. With our focus on innovation and
food 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 this
neighborhood.

Strategic Alliance
Tropical Smoothie Franchise Development Corp. has developed a proven
franchise 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 a
Tropical Smoothie Café store in (City, State).

5
(Corporate Name)

Pricing Product Policy

Tropical 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, such
as, website, social media, print (FSI, coupons, direct mail, fliers etc.), radio, along with
promotional free product samples to advertise its business. Tropical Smoothie
Franchise Development Corp. requires a minimum of three percent of gross sales
revenue for promotion and advertising. One percent of gross sales revenue will be
provided to Tropical Smoothie Franchise Development Corp. for national advertising
and two percent of gross sales revenue will be dedicated for local promotion and
advertising. (Corporate Name) will allocate a minimum of $2000 toward advertising
during the company's grand opening period.

6
(Corporate Name)

Marketing Strategy

The company’s marketing strategy is to promote Tropical Smoothie Café as a

high quality, innovative fast casual dining place with a tropical island vibe. All of our
food and smoothies are made to order. You can enjoy the laid back tropical
environment by dining inside or take it to go. As an added convenience you can order
online and it will be waiting for you when you arrive. Insert drive-thru information here if
applicable.
Competition
There is currently NO DIRECT competition located within a X-mile radius of
Tropical Smoothie Café's location. We have created a niche category so that there is
no 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 Café will compete with these businesses at some level,
these businesses are considered indirect competition to Tropical Smoothie Café.

Distinct Competitive Advantages

(Corporate Name) differentiates and positions its business from the competition
with its high quality and innovative food and beverage products.The variety of products
that we offer and the portions are ideal for almost any taste or budget. While our
product is of the highest quality, it’s the unparalleled hospitality that we hang our hat for
attracting and retaining our customers. We realize that they have limited disposable
income and we need to earn their business.

Operations
(Corporate Name) will operate its Tropical Smoothie Café during the hours
X:00am to XX:00pm seven days a week, except Thanksgiving Day and Christmas Day.
(Owner’s Name) will be the general manager and (name) will be the operating
manager during the first three years of operations. The company will hire an assistant
manager and enough (approximately 12-15) additional part-time employees through
local workforce to supplement staffing requirements. All employees will be properly
and adequately trained in store operations, including smoothie and food product
preparation procedures, store cleanliness, and customer unparalleled hospitality
standards.

7
(Corporate Name)

PRODUCTS
Smoothies
Tropical Smoothie Café’ delivers the best real fruit smoothies. We make each
smoothie to order and there is a variety – all of them delicious, refreshing, and
nutritious drinks. Most of our smoothies are made with one or more fruits such as
strawberries, banana, orange, peaches, pineapple, blueberries raspberries, acai,
pomegranate, goji cranberry, kiwi, and mango and blended to perfection with ice and
Turbinado sugar or Splenda upon request. We also offer some great dessert smoothies
if you’re in the mood to indulge. These are made with indulgent ingredients like white
chocolate, peanut butter and caramel.

Bistro Sandwiches, Toasted Wraps, Grilled Flatbreads, Gourmet

Salads, and More
Tropical Smoothie Café's bistro sandwiches, toasted wraps, grilled flatbreads
and gourmet salads are a breakfast, lunch and dinner staple appealing to the customer
that desires a delicious and nutritious alternative meal to the typical fast food
hamburger and fries. Tropical Smoothie Café’s food offerings are made to order and
with the freshest and finest ingredients.

Management Plan
(Corporate Name) principal owners, (names) bring a combined total of
approximately XX years of significant management-related experience and more than
XX 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 operating
manager 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 manager’s
duties and responsibilities during his/her absence. Tropical Smoothie Café store will be
under constant management supervision at all times by a manager or assistant
manager to ensure quality control of product and customer service satisfaction.

(Owner’s Name), President/CEO/General Manager

8
(Corporate Name)

(Owner’s Name) brings extensive management and customer service

related experience to (Corporate Name) including more than 20 years of business,
administration, and personnel management experience while employed at Acme
Widget 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, and
federal, state, county, and city agencies.
• Management of business records and financials.
• Ordering all supplies.
• Assuming primary operating manager’s duties and responsibilities during
any periods of absence.

(Insert your personal business bios with relevant experience.

(NAME), Vice President & Operating Manager

9
(Corporate Name)

Market Strategies
Market Definition

Insert smoothie growth here.

Tropical Smoothie Café's will target consumers that are looking for a high
quality, innovative food and beverage experience. With a menu of more than 35 real
fruit smoothies blended to order along with a wide array of innovative food products to
fit everyone’s taste, dietary needs and budgets. Toasted wraps, bistro sandwiches,
grilled flatbreads, gourmet salads and more made with the highest quality ingredients
and innovative flavor profiles to tempt their taste buds. The business will offer its
products to be enjoyed in the virbrant tropical environement or to go. Online order
available as well.

The majority of Tropical Smoothie Café's customers will consists of drive-by

traffic on (main road name) and business individuals and residents working and/or
living 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, Smoothie

King, Panera, Subway, etc.) located in Tropical Smoothie Café's market area. That is,
there is no other business similar to Tropical Smoothie Café selling smoothies, wraps,
specialty sandwiches, salads, flatbreads, etc. one location. There are other fast-food
restaurants in Tropical Smoothie Café 's market area such as Taco Bell, Chik-Fil-A,
Burger King, Papa John's Pizza, Boston Market, etc. However, these businesses do
not offer similar products as Tropical Smoothie Café .Therefore, no specific competition
analysis was conducted for these businesses.

There are two businesses within the market area, which sell similar menu
offerings to Tropical Smoothie Café. Although these businesses are considered "in-
direct" competition to Tropical Smoothie Café, a comprehensive competition analysis
was conducted due to their similar products and close proximity to Tropical Smoothie
Café.

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

10
(Corporate Name)

location. This major franchise specializes in pita-bread based sub-sandwiches.

Schlotzsky's Deli currently does not offer gourmet wraps, smoothie, or gourmet
coffee products. Schlotzsky's Deli has a very steady lunch business seven days a
week due to close proximity to Virginia Beach's largest office complex (one
Columbus Center, a 11 story building employing more than 1,200 people), other
office/retail businesses nearby, and Pembroke Mall, one of the city's major shopping
malls. According to Divaris Real Estate, Inc., this store is the franchise's highest
grossing unit, reporting annual gross sales in excess of $900K. It is our belief that
Schlotzsky's Deli's unusual high sales volume is based primarily on convenience to
the business/office customer rather than product quality and service. (Corporate
Name) expects Schlotzsky's Deli to be a primary competitor for lunch and dinner.
However, given the high demand for convenient, nutritious, and healthy food and
drink products, and limited supply within the market area, (Corporate Name)
believes Schlotzsky's Deli and Tropical Smoothie Café will complement each other,
providing customers a daily choice for their food and drink consumption needs.
Through advertising and promotions, Tropical Smoothie Café expects to earn a
minimum of 15 percent of Schlotzsky's Deli market share during the first year of
operations.

• Starbuck's Coffee. Starbuck's Coffee, the country's leading gourmet coffee

franchise, is located approximately three blocks west of our Tropical Smoothie Café
location. Starbuck's Coffee has a very steady business throughout the day, selling
their own blend of coffee and espresso products. Like Schlotsky's Deli, Starbuck's
Coffee reports above average sales due to their superior location (i.e., walking
distance for office employees and close proximity to other businesses, schools,
residential area, etc.) Their steady business and high sales volume confirms a high
demand for gourmet coffee products in the market area. There is a satellite
Starbuck's Coffee Café located in the Barnes and Knoble store located in the same
shopping center as Schlotzsky's Deli. According to Divaris Real Estate, Inc., this
satellite café produces annual gourmet coffee sales in excess of $400K. Tropical
Smoothie Café serves Royal Cup blend coffee products that are equal to or better
than that of Starbuck's Coffee. However, due to Starbuck's Coffee nationally
recognized name and established clientele, we do not envision gaining more than
15 percent of their market share during the first year of operations. Instead, we will
aggressively pursue building our own gourmet coffee clientele through marketing
and 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 a
vibrant, tropical atmosphere that provides for a 10 minute vacation.

11
(Corporate Name)

High Quality, Innovative Food & Beverage

Tropical Smoothie Café is proud to offering award-winning, high quality,
innovative food and beverages. In 2010 we were one of only 8 restaurants in the
country to be awarded the distinguished Menu Masters award conferred by Nation’s
Restaurant News and Ventura Foods. We use the freshest, highest quality and most
innovativeingredients we can find. For our smoothies, we offer real fruit, individually
quick 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 natural
sweetener that retains its vitamins and minerals. Our smoothies are blended at the
time 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-defined
recipe of exact measured portions of fruits and supplements. High-powered blenders
with technogically advanced components are used to create the perfectly smooth
texture of our drinks.

Our food products (toasted wraps, bistro sandwiches, grilled flatbreads, gourmet
salads) are also prepared with fresh ingredients at time of order to ensure quality and
freshness. That’s one reason we are passionate about using sampling as a marketing
tactic. Once a customer tastes our products, they will not only return often, but they will
recommend us to others. The perfect recipe for a successful business.

12
(Corporate Name)

Unparalleled Hospitality
At Tropical Smoothie Café we believe that our customer’s deserve unparalleled
hospitality. Not just customer service.
Our mantra for delivering this is conveyed in what we call the What You Get Paid
For theory:
I get paid to create an experience that makes for a VERY satsifed and loyal
customer that comes back often and recommends us to others.
We have comprehensive training for our staff so that can understand all the
operational necessities to run a great business and spend time creating experiences for
our customers.

Vibrant, Tropical 10 Minute Vacation

The minute you set foot in a Tropical Smoothie Café you will feell the vibe and
want to kick off your shoes and don your favorite pair of flip flops. The colors, the
music and products all convey that laid back tropical island feel that will make you feel
like you’re on a 10 minute vacation. With outdoor café seating all you need is sand
indoors.

Business of Giving Back

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

13
(Corporate Name)

Location Analysis
Forum Analytics reviews each site chosen by the computer model which goes
through 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 TSC
location.

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

Through intense market and location analysis, (Corporate Name) determined its
first Tropical Smoothie Café would be best located at (Store Street Address, City,
State). Comprehensive market analysis conducted by (Owner’s Name) indicated this
prime location provides all the necessary qualities required for a successful and
profitable business. Additionally, the high traffic volume (more than XX,XXX cars per
day) on (Street), and outstanding visibility of the business from the street will
undoubtedly help increase franchise recognition as additional Tropical Smoothie Cafés
are opened throughout the (market name) area.

Tropical Smoothie Café is located in (Name) Shopping Center, (XXXXbound) on

(Street Name/Intersection). Major crossroads near (Shopping Center’s Name) are
(Street Names). (Street name) provides easy and convenient access to major
shopping malls, automobile dealerships, large residential communities, and (list any
other major destination point, i.e., beaches). There are more than XX,XXXX
daytime employees located within a two-mile radius of our location.

(Shopping Center’s Name) Shopping Center is a XXX,XXX sq. ft Gross

Leasing Area (GLA) center with XXX main anchors, (name/description of anchors).
the street from our location.) The center contains a variety of consumer business
retailers:

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

Tenant Tropical Smoothie Café (1,200 sq. ft)

Verizon (telephone services) Harris Camera
Cruise Holidays (travel agency)
Hair Magic (Salon) Weight Watchers
The Soccer Store Shun Xing Chinese
Norfolk Florist Party City
Household Finance Tenant
H&R Block (tax advisor) Great American Bunk Beds

14
(Corporate Name)

Farm Fresh Weight Loss Forever

Fitness Resource Equipment
Ames Tuxedos Fant Shoe Repair
Infinitech Communications Domino's Pizza
Hair Crafters (Salon)
Chilli's Restaurant
Hollywood Nails Boston Market Restaurant

Total GLA: 120, 970 square feet

(Shopping center’s 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 of
customers is maintained within (shopping center’s name) during normal business
hours. The majority of tenants are open for business from X:XXam - X:XXpm
(Monday through Saturday) and X:XXam – X:XXpm (Sunday). Tropical Smoothie
Café's hours of operation are X:XXam to X:XXpm, seven days a week, except
Christmas Day and Thanksgiving Day.

15
(Corporate Name)

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

Tropical Smoothie Franchise Development Corp. requires a minimum of three

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

(Corporate Name) intends to allocate a minimum of $2000 for advertising and

promotion during its grand opening.It is our philosophy that Cafés that open big stay big
and will be have our Grand Opening right after we open for business. This will include
grand opening specials, prizes, local media, radio remotes, public relations including
product drops to local media outlets, radio, newspaper, and flier advertisements.

The primary source of advertising for the business will come from email, social
media, text clubs, sampling, fundraising, direct mail and home delivery of coupon
advertisements. These coupons will consist of various specials and discounts
approved by Tropical Smoothie Franchise Development, Corp.

A secondary source of advertising will come from local sponsorship of various

support groups. For example, sponsorship of a local Little League team and other
youth groups. (Corporate Name) will allocate a minimum of $500 annually towards
this advertising strategy.

16
(Corporate Name)

Key Assets and Skills

Introduction
To 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 Café, we take pride in offering the highest quality and most
innovative products in a clean environment to our customers. All of our products are
made to order and we pride ourselves in the standards for quality and cleanliness. We
are confident our product and environment will exceed our customer (and competition)
expectations.

Unparalleled Hospitality
Our customers deserve unparalleled hospitality, not just customer service. They
choose to give us a portion of their disposable income in return for an experience and
high 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 often
and recommends us to others.

Site Selection
Comprehensive market analysis conducted by (Owner’s Name) and reviewed
by a team at Tropical Smoothie Franchise Development Corporation indicates our
prime location provides all the necessary qualities required for a successful business.
Specifically, Tropical Smoothie Café's location possesses high traffic volume, easy
ingress and egress, clear visibility from the street, close proximity to (identify major
destination/anchors here – such as city's central library and Bally's Fitness
Center, and large residential and business communities adjacent to our location.

Management
(Corporate Name) principal owners, (owner’s names) bring a combined total of

17
(Corporate Name)

more than XX years of significant management-related experience and more than XX

years 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 of
service and successfully managed two fast food restaurants at the age of 17-19 years
old. (name) outstanding management abilities, friendly personality, and ability to
provide unparalleled customer service to each an every individual she encounters will
undoubtedly contribute to (Corporate Name)'s success.

18
(Corporate Name)

Staffing Requirements
Job Title General Manager Salary: None for two years

Job Description: Primary point of contact for all business transactions, including
suppliers, Tropical Smoothie Franchise Development Corp., lending institutions, and
federal, state, county, and city agencies. Responsible for proper management of all
business records, books, and financials. Orders all supplies. Assumes primary
operating 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 other
duties which are required. Supervises all employees. Assumes general manager's
duties and responsibilities during any periods of absence.

Job Title: Assistant Manager Salary: $18,000

Job Description: Responsible for the overall management of the store during
general manager's and/or operations manager's absence. Ensures each customer is
provided 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, preparing

orders, and finalizing sales. Performs necessary preparation and cleaning activities
before, during and after store business hours to ensure highest level of product
freshness 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

19
(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 by
proactively identifying the most prominent obstacles associated with our business type
and implemented appropriate safeguards.

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

Location, location, location

Tropical Smoothie Café’s strategic partners, Forum Analytics and Windsor
Realty work with our franchisees to determine the best location in each marketplace
based on statistical data anda their vast experience in securing great locations. Before
a lease is signed or a location secured this needs to be reviewed by a team of Tropical
Smoothie Café executives. This is the value of being in a proven system rather than an
independent operator.

Product & Experience

The relevance of the high quality and innovative products provide a competitive
edge in today’s marketplace. Tropical Smoothie Café’s focus on delivering experiences
and not just commodity products differentiates us and delivers a niche category where
there is little competion.

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

Month Day, 201_

20
(Corporate Name)

Dear Mr(s). __________:

The attached Business Plan template and Breakeven Analysis spreadsheet are being delivered
to 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 Business
Plan will assist you in obtaining the financing you have concluded will be necessary to develop your
Tropical Smoothie Café. As we noted in the Franchise Disclosure Document, a copy of which you
already received, the Company does not provide or authorize its sales persons to furnish to its
prospective Franchisees any oral or written information concerning the actual or potential sales, costs,
income or profits of a Tropical Smoothie Café business. Such information is commonly known as
“Earnings Claims”. Instead, we encourage you, as we do with all our prospective Franchisees, to speak
with existing Tropical Smoothie Cafe franchise owners to obtain information and answers about the
operations and financial results of a Tropical Smoothie Café business.

It is anticipated that you will require the assistance of existing Tropical Smoothie Cafe franchise
owners to prepare certain sections of the Business Plan, including the section on sales and net income
projections. In that regard, we would like you to acknowledge and confirm, by your signature below, that
the sales and net income projections that you indicate in your Business Plan will be developed from
information provided solely by existing Tropical Smoothie Cafe franchise owners and will not be obtained
from any officer, director, employee, agent or representative of the Company. You further acknowledge
that the Company does and will not represent, warrant or guarantee that you will be able to attain the
operating results indicated in your Business Plan. You should not consider this information as the actual
or potential sales, expenses or net income that you will realize from owning and operating a Tropical
Smoothie 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 TSC
via fax at (850) 269-9845 at your earliest convenience.

Sincerely,

Charles Watson
Vice President, Franchise Development

Acknowledged and Agreed:

_____________________________________

Print Name:___________________________

Date: ________________________________

21