KBRA Assigns Preliminary Ratings to TSC SPV Funding, LLC, Series 2026-1 Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings TSC SPV Funding, LLC (the Issuer), Series 2026-1 (TROP 2026-1), Class A-2 and Class M notes, a whole business securitization (WBS). TROP 2026-1 represents the issuer’s second securitization in which Tropical Smoothie Café, LLC (TSC, the Manager, or the Company) contributed substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. In conjunction with the issuance of the Series 2026-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding Series 2024-1 Class A-1 VFN, Class A-1-LR and A-2 Notes (the Existing Notes and, together with the Series 2026-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2026-1 Notes.

Founded in 1997, TSC is a franchisor of limited-service restaurants in the United States offering smoothies, wraps, bowls, and other healthy menu options. As of year-end 2025, the system generated approximately $1.5 billion in systemwide sales (SWS) and had 1,668 locations across 44 states and Washington D.C., representing an approximately 100% franchised system. The collateral includes existing and future franchise and license agreements, revenue from rebate agreements, other fees and income, intellectual property, and related revenues therein.

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Related Publications

• TSC SPV Funding, LLC Series 2024-1 New Issue Report
• TSC SPV Funding, LLC Surveillance Report

Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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