KBRA assigns preliminary ratings to TSC SPV Funding, LLC Series 2024-1 (TROP 2024-1), a whole business securitization (WBS).

TROP 2024-1 is the inaugural securitization in which Tropical Smoothie Café, LLC (TSC, the Manager, or the Company) will contribute substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. Similar to other master trust WBS transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The collateral includes existing and future franchise and license agreements, revenue from rebate agreements, other fees and income, and intellectual property, and related revenues therein. The proceeds from the offered notes will be used to refinance existing corporate debt, pay transaction expenses, and for general corporate purposes.

Founded in 1997, TSC is a franchisor of limited-service restaurants in the United States focused on smoothies, wraps and other healthy menu options. As of the trailing 53 week period ended March 31, 2024 (LTM Q1 2024), the system generated $1.3 billion in system sales (SWS) and has 1,411 locations as of the quarter ended March 31, 2024 (Q1 2024) across 44 states, of which 1,410 are franchised with the remaining location company-operated.

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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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005478

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