Edible Arrangements
Date of Incorporation: 2000
Franchising Since: 2001
Headquarters: Wallingford, Connecticut
Country: U.S.
Description: Edible Arrangements Businesses feature uniquely designed arrangements and gift baskets whose primary ingredients are cut fresh fruit. Products are prepared according to specified recipes and procedures.
Franchise Offer: The franchisor grants franchises for Businesses operating under the Edible Arrangements name and other Marks. Edible Arrangements Businesses operate at stores located in strip shopping centers, shopping malls, and other venues in downtown commercial areas and in suburban areas. While customers can visit the store location to order and pick up the products that the franchisee prepares for them, the franchisee will deliver most of the prepared products to customers away from the store's premises.
Financial Assistance: Edible Arrangements franchisees are eligible for expedited and streamlined Small Business Administration loan processing through the SBA's Franchise Registry Program. Currently there is one equipment leasing program in place for which franchisees may qualify. Other than this program, Edible Arrangements does not offer direct or indirect financing. Edible Arrangements does occasionally cooperate with various lenders in their efforts to provide financing to qualified franchisees for various purposes. These lenders should only be considered as financing alternatives, and the franchisee has no obligation to finance through any particular lender. Edible Arrangements and affiliates receive no consideration for placing financing with any third party.
Training and Assistance: Edible Arrangements will train the franchisee (or the managing owner) and one on-site manager on operating an Edible Arrangements Business. The training program is approximately two to six weeks long depending on the franchisee or managing owner's, and the manager's prior business experience and needs. Edible Arrangements may require the franchisee (or the managing owner) and employees to attend up to five days of additional training with the first year of the franchisee’s Business operation if believed necessary by the franchisor.
Territory: The Territory granted generally consists of a Territory and Delivery area, where the size and shape of which depend on the nature of the geographic area. The estimated population of the Territory granted includes an estimated working and/or living population of no more than 50,000 people. It is possible the franchisee could receive no Territory depending on the market in which the franchisee wants to run his or her Business. Edible Arrangement will tell the franchisee if they have a Territory before the Franchise Agreement is signed.
Term of Agreement and Renewal: The length of the franchise term is 10 years. If the franchisee has substantially complied with Franchise Agreement, he or she may acquire one successor franchise for 10 years on the then-current terms.
Obligations and Restrictions: The franchisee must at all times faithfully, honestly, and diligently perform the contractual obligations. System Standards may regulate the Business's staffing levels and employee training, dress, appearance, and demeanor. Although it is recommended, the franchisee (or managing owner) need not participate personally in the Business' on-site operation. However, the franchisee then must hire a full-time manager to handle the Business's daily operation and must supervise the manager and the Business's operation. The manager must satisfactorily complete the initial training and be certified.
Total Number of Units: Over 1,020 units worldwide.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial franchise fee | $20,000 | $30,000 |
| Real estate/ Rent (1 month) | $2,500 | $8,000 |
| Security Deposit (1 month) | $2,500 | $8,000 |
| Build-out | $30,000 | $80,000 |
| Equipment, including computers | $48,245 | $82,480 |
| Signage | $3,900 | $7,900 |
| Printing and graphics | $2,060 | $2,174 |
| Delivery Vehicle Deposit | $1,000 | $3,000 |
| Opening Inventory | $13,103 | $16,264 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Training Expenses (for all attendees) | $1,900 | $1,900 |
| Insurance (1 month) | $1,500 | $3,000 |
| Miscellaneous Opening Costs | $1,500 | $2,500 |
| Additional Funds - 3 months | $10,000 | $30,000 |
| Total Estimated investment (including lease costs but not real estate purchase costs) | $148,208 | $285,218 |
Ongoing Fees:
| Name of fee | Amount |
|---|---|
| Royalty | 5% of business' weekly gross sales or $200, whichever is more |
| Marketing Fund | Currently 2% of business' weekly gross sales (can be increased up to 5% of gross sales if Edible Arrangements concurrently and proportionately reduces the franchisee's minimum and Area Cooperative obligations) |
| Local Advertising | 3% of store's weekly gross sales |
| Area cooperative | Up to 5% of store's gross sales |
| Special Advertising and Promotional programs | Currently 4% of store's gross sales (planned to be reduced to 3% of Gross Sales in July 2011). |
| EACONNECT Program Fees | Edible Arrangements reserves the right to charge up to 20% of price paid for order (2% charge on total payment for each standard customer call center order and each standard customer order placed through on-line ordering system on website starting in approximately July 2011) |
| Computer systems, Maintenance and support | Cost of service |
| Franchise System Website | Currently up to $200 per month |
| Training for Additional or Replacement Employees While Attending Initial Training | $500 per person |
| Additional Training or Assistance During Franchise Term | $300 per day plus expenses for training at the franchisor's location; $500 per day plus expenses for training in franchisee's territory |
| Renewal | $5,000 |
| Transfer | $10,000 |
| Testing | Costs of Testing |
| Annual convention | Will vary under circumstances |
| Franchise Resale Assistance | 5% of sales price (but capped at $10,000; transfer fee must also be paid) |
| National Advisory Council Fee | Reimbursement of costs for Council's administration and operation |
| Audit | Cost of inspection or audit, which may be up to $2,500 per day |
| Late fee | $50 for each 30-day period a payment is late |
| Non-Approved Opening | $200 for each day business operates without the franchisor's approval |
| Reconciliation fee | $50 |
| Daily Close-Out | $50 |
| Processing Fee | Varies; not to exceed over 5% of amount due |
| Proprietary Equipment Non-Return Fee | $5,000 |
| Operations Manual | Cost reimbursement |
| Management Fee | $400 per person per day (plus costs and expenses) |
| Costs and attorneys fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Store maintenance Costs | Will vary under circumstances |
| Insurance Reimbursement | Will vary under circumstances |
Date of FDD: 2011
The above information has been compiled from the FDD of Edible Arrangements along with online sources.
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