An Arizona Tropical Smoothie Cafe franchisee filed for Chapter 11 bankruptcy protection June 12.
JND Tropics listed between one and 49 creditors in its bankruptcy filing. The Phoenix-based, multi-unit operator filed in the United States Bankruptcy Court for the District of Arizona.
Daniel and Nicolette Rudolph own at least 10 cafes in the Phoenix area, according to Tropical Smoothie Cafe’s most recent franchise disclosure document. JND ceased operations of one location last year.
The operators bought eight existing stores in 2023 in Phoenix, according to local news station KTAR News.
Assets are estimated between $1 million and $10 million and liabilities are in the same range, according to the filing.
Its creditors include the Arizona Department of Revenue, Tropical Smoothie Corporation and Applepie Capital.
JND appointed Christopher Simpson as its Subchapter V trustee.
Neither Tropical Smoothie Cafe nor attorney Michael Carmel, who represents JND in this case, did not immediately respond to requests for comment.
A creditors hearing is scheduled for July 15.
Related: Franchise Attorneys Talk Bankruptcy and Brand Stability
According to Tropical Smoothie Cafe’s FDD, average revenue for 1,268 traditional stores in 2024 was just over $1 million, up from $979,491 in 2023. Sales last year ranged from $287,633 to $2.6 million. In 2024, the brand opened 143 net stores, ending the year with 1,515 cafes.
Last year, private equity firm Blackstone bought the smoothie franchise for an estimated $2 billion from Levine Leichtman Capital Partners. Tropical Smoothie Cafe appointed Max Wetzel as CEO, replacing Charles Watson, who held various leadership positions at the franchise since 2010.
Just months later, Blackstone bought Jersey Mike’s.
Related: Restaurant Vet Charlie Morrison Succeeds Peter Cancro as Jersey Mike’s CEO
Other notable franchisees and franchisors have filed for bankruptcy this year.
A 57-unit Burger King operator, Consolidated Burger Holdings, filed for Chapter 11 in Florida April 14. In the court filing, the company said its Burger King units “suffered significantly from loss of foot traffic” through the COVID-19 pandemic, which led to a decline in revenue.
Sports bar franchise Hooters filed for bankruptcy this year, and two major operators are in the process of buying more than 100 corporate-owned restaurants. In 2024, the brand closed 48 stores and added another 30 to that list this year.
Texas-based Pappas Restaurants bought On the Border Mexican Grill & Cantina out of bankruptcy in May. On the Border filed for bankruptcy in March.
For the second time in less than five years, casual dining franchise Bar Louie filed for bankruptcy in March. It reached a deal with a lender, according to court documents, to reduce debt and restructure the business.
DMD Ventures, an eight-unit Twin Peaks franchisee in Florida, filed for Chapter 11 protection January 6, citing a major lawsuit as the cause.
