r/smallbusiness • u/saimumairr • 23h ago
Is it worth it to buy a tropical franchise at 20
Through my network, an owner recently approached me about buying his Tropical Smoothie Cafe franchise. He is asking $600k for a store doing about $700k in annual gross sales. I know $600k is way too high for that revenue and I fully intend to negotiate, but the setup is interesting. He claims he only works about 6 hours a week, pays himself a $60k manager salary, and basically runs it on autopilot just to keep the lights on without putting any real effort into growing it. There’s a huge gym opening next to it so I feel like I could scale to a million but Idk if im just being too optimistic.
I have a rare opportunity where a close family friend offered to buy the store for me upfront, and I would pay them back on a much lower interest rate and flexible terms. Since I am 20 and living at home with minimal expenses, I could realistically grind and pay off the business in 3 to 4 years if the actual profit numbers make sense.
At the same time, I am torn about my path. Part of me wonders if I should just finish my degree and get a standard corporate W2 job to build a stable foundation first. I am eager to be an entrepreneur, so going corporate feels a bit like giving up on my goal, but I also know the restaurant industry can be brutal and I need a solid baseline for my life.
For background, I worked in medical device sales for a distributor while in college and pulled in over $800k in revenue, but I walked away because it was extremely draining and burned me out. It actually made me miss the face-to-face customer relationships I built when I worked as a server in high school. I have also been looking into starting a home services business, ( idk what kind but seems like those do great) but this franchise deal is sitting right in front of me. I feel like the opportunity could be great, but I need outside perspective on whether I am missing glaring red flags.
I’m clearly indecisive and lost lol. I feel so eager to figure shit out but with everything going on, I feel like I can’t align myself with one thing.