Edible Franchise Costs, Fees & FDD

Franchising Since: 2000

Franchising Since: 2001

Headquarters: Atlanta, Georgia

Estimated Number of Units: 700

Franchise Description: The franchisor is Edible Arrangements, LLC. The parent company is Edible Brands, LLC. The franchise is to operate a business under “Edible,” “Edible Arrangements,” and other trademarks that sells sculpted fruit floral arrangements, floral bouquets, home goods such as vases and candles, plush animals, candy, popcorn, nuts, coffee, teas, gift baskets made with fresh fruit, chocolate-covered fruit, fruit smoothies, fruit salads, cookies, cakes, cheesecakes and similar individual-serving-size baked goods such as cupcakes, fruit and yogurt products, dessert boards, and other chocolate and fruit-related products.
Training Overview: Before the business opens, the franchisor will train franchisees (or their managing owner and one on-site manager) on operating an EDIBLE business, but excluding aspects relating to labor relations and employment practices. Training for the operation of a business will last from five days up to two weeks depending on the managers’ prior business experience and needs. Managers must complete initial manager certification training to the franchisor’s satisfaction and participate in all other activities required to operate the business. The franchisor has the right to require managers to attend up to five more days of training at its designated location during the business’s first year of operation if it believes this additional training is necessary. In addition to the initial training, the franchisor may require managers or other personnel to participate in training during the term of the Franchise Agreement as it deems necessary based on various factors. At least one of the franchisee’s representatives (an owner or another person the franchisor approves of) must attend, at the locations the franchisor designates, the annual or biennial conventions it conducts for EDIBLE business franchisees.

Territory Granted: Franchisees will operate the business within a non-exclusive geographic area called a delivery area. The delivery area will encompass a working and/or living population of at least 75,000 people and is defined (and revised) periodically as the franchisor deems appropriate, for example, by cities, counties, zip codes, streets, highways, natural boundaries, or other markers. Franchisees likely will not have a specific, unchanging geographic configuration for their delivery area. However, the delivery area is defined (and revised) during the franchise term in terms of geographic markers, the delivery area always will encompass a working and/or living population of at least 75,000 people. However, if franchisees default on their Franchise Agreement, the franchisor may reduce the population threshold for the delivery area below 75,000 in its sole discretion. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations. System standards may regulate the dress and general appearance of business employees. However, franchisees have sole responsibility and authority for their labor relations and employment practices, including employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Although the franchisor recommends it, franchisees (or their managing owner) need not participate personally in the business’s on-site operation. However, franchisees then must hire a full-time on-site manager to handle and supervise the business’s daily operation. Franchisees must offer and sell all products and perform all services the franchisor periodically requires for EDIBLE businesses. Franchisees may not offer or sell any products or perform any services the franchisor has not authorized.

Term of Agreement and Renewal: The length of the franchise term is 10 years. If franchisees are in good standing and satisfy certain conditions, they may renew for one additional 10-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing or guarantee a franchisee’s note, lease, or obligation. First-time purchasers of franchises who are veterans of the U.S. Armed Forces, and otherwise meet the program’s requirements, are eligible to pay a reduced initial franchise fee of $20,000.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,000	$30,000
Real Estate/Rent (1 month)	$3,000	$6,500
Security Deposit (1 month)	$3,000	$6,500
Build-Out – Vanilla Box	$50,000	$250,000
Equipment, including Computers (and installation)	$85,000	$209,000
Signage (including shipping and installation)	$3,500	$15,000
Printing & Graphics (including shipping)	$2,300	$3,000
Delivery Vehicle Monthly Lease or Loan Payment	$600	$1,000
Opening Inventory (including shipping)	$15,000	$16,500
Grand Opening Marketing	$5,000	$10,000
Expenses Related to Attendance at Initial Training (for each attendee)	$3,000	$4,000
Insurance (1 month)	$1,600	$3,000
Miscellaneous Opening Costs	$1,500	$2,500
Additional Funds - 3 months	$10,000	$30,000
ESTIMATED TOTAL (including lease costs but not real estate purchase costs)	$213,500	$587,000

 
Other Fees

Type of Fee	Amount
Royalty	5% of business’s weekly gross sales or $200 per week, whichever is more.
Marketing Fees Contributions	Up to 5% of weekly gross sales. Currently, the national marketing fund contribution is 3.5%. Edible businesses also are required to spend 1.5% on local marketing efforts (including through an advertising cooperative if one exists in the franchisee’s market).
Special Advertising and Promotional Programs	As the franchisor periodically directs based on franchisee vote, but currently 0% of store's gross sales.
EDIBLE.COM Program Fees	The franchisor reserves the right to charge up to 30% of price paid for order, percentage may vary based on order method. Currently the fees are: (1) 14% of the total payment for any customer order through the franchisor’s website; (2) 20% on the total payment for each order taken by the franchisor through its call center or business lines; and (3) a varied charge of up to 30% of the total payment for orders taken by third-party delivery services.
Credit Card Processing and Security and Fraud Prevention (EMV Fees)	Costs of service (2.25% of order).
Computer Software and Technology, Support and Upgrades	Currently $160 to $400 per month (depending on number of users and locations); a subscription for hardware will cost an additional $300 to $600 per month (depending on the number of users and locations and length of the hardware subscription).
Franchise System Website	Current charge is up to $200 per month (not to exceed $300 per month).
Additional Training or Assistance During Franchise Term	Currently $400 per day plus expenses for training at franchisor’s location or $500 per day plus expenses for training at the franchisee’s location (in both cases not to exceed $1,500 per day).
Renewal Fee	$5,000
Transfer to a Third-Party to the Franchise	$10,000
Transfer of Franchise Agreement or Controlling Ownership Interest (Netsolace)	$1,200
Transfer for the Convenience of the Ownership	$2,500
Relocation Marketing Assistance Program (REMAP) Fee	$5,000 or $10,000
Incorporation/Entity Name Change Fee	$350
Product and Service Purchases	Varies.
Unapproved Product Testing	Costs of testing when the franchisee makes request. Costs depend on products or suppliers involved and the process the franchisor must complete.
Convention	Will vary under circumstances (not to exceed $2,500 per person; does not include actual out-of-pocket attendance costs).
Franchise Resale Assistance	$10,000
National Advisory Council Fee	Reimbursement of costs for council's administration and operation.
Unapproved Opening	$200 for each day business operates without the franchisor’s approval.
Quality Inspection Failure	Reimbursement of costs, which vary based on the facts.
Non-Compliance Fee	$250 to $500 per violation.
Records Deficiency Fee	$250 per violation.
Audit	Cost of inspection or audit, which may be up to $2,500 per day.
Reconciliation Fee	$50
Late Fee	$50 for each 30-day period a payment is late (Franchise Agreement); 1.5% interest (Netsolace Agreement).
Certified Happiness Program Guest Recovery Reimbursement	Reimbursement of costs, which vary based on the facts.
Reimbursement Costs	Will vary under circumstances (depending on extent of the franchisee’s noncompliance).
Proprietary Equipment Non-Return Fee	$15,000
Management Fee	$400 per person per day (plus costs and expenses).
Costs and Attorneys' Fees	Will vary under circumstances (depending on extent of the franchisee’s non-compliance).
Indemnification	Will vary under circumstances.
Liquidated Damages	The sum of: (1) $15,000 plus; and (2) the average royalty and marketing fee contributions owed by the franchisee per month over the preceding 12-month period multiplied by the lesser of (i) 18 or (ii) the number of months remaining in the term of the Franchise Agreement.
Insurance Reimbursement Costs	Franchisees must reimburse the franchisor if it obtains insurance coverage for them.
Tax Reimbursement	Franchisees must reimburse the franchisor for any taxes it must pay to any state taxing authority on account of either their operation or their payments to the franchisor (except for its income taxes).

The above information has been compiled from the FDD of Edible Arrangements. Year of FDD: 2025.
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