Edible Arrangements
Edible Arrangements offers fruit-based treats and gift baskets; known for sculpted fruit floral arrangements. Part of the specialty food retail industry.
About Edible Arrangements
Edible Arrangements, LLC is an American franchising business that specializes in fresh fruit arrangements, combining the concept of a fruit basket with designs inspired by flower arrangement. The company also sells a variety of specialty fruit gift items, such as gift boxes featuring chocolate dipped fruit and fresh fruit products and other products like fresh fruit cups, fresh fruit smoothies, chocolate dipped fruit cones, flower bouquets, dessert boards, chocolate dipped fruit platters, cookies, and cupcakes.
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Edible Arrangements franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an EDIBLE® Business ranges from $213,500 to $587,000, according to [p.1] of the FDD.
What is the initial franchise fee?
The initial franchise fee for a new franchisee is $30,000 [p.14]. This fee covers costs such as evaluating the proposed store location and providing initial training [p.14]. There is a reduced fee of $20,000 available to veterans who meet certain criteria [p.14].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee which accrues daily, generally at 5% of the franchisee's weekly revenues [p.197]. Additionally, there is an advertising fund contribution up to 5% of the franchisee's weekly revenues [p.197]. Both fees are mandatory and must be paid regardless of sales levels [p.4], with a minimum weekly royalty fee of $200 that may increase annually based on the Consumer Price Index [p.25].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may have the option to renew your rights to operate the franchised business for one additional successive term of ten years upon expiration of the initial term, subject to certain conditions as outlined on page [p.91].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a prospective franchisee must meet certain conditions before selling or transferring their franchise rights or ownership interest to a third party. This includes ensuring all specified conditions are met before or concurrently with the effective date of the transfer [p.128]. Good cause for refusing such transfers is also defined, including factors related to compliance and business interests [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.5(c)]. Additionally, this isn't specified in the excerpts, but the agreement will also terminate upon the expiration or termination of the noted obligations under the Franchise Agreement [p.258].
What financial requirements — net worth and liquid capital — do I need to qualify?
You must have sufficient net worth to make the investment in the EDIBLE ® Business franchise opportunity, as detailed on page [p.153]. Additionally, you should have adequate funds to meet all obligations under the agreement. The FDD does not specify exact liquid capital requirements but implies that having access to initial investment and other funds is necessary, with options for escrow or surety bonds if the franchisor's net worth is less than $100,000 (refer to [p.6]).
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your Delivery Area is non-exclusive and may overlap partially or completely with other franchisees' territories [p.49]. You are also subject to potential changes in your Delivery Area by the franchisor [p.90], and you must obtain prior written consent from the franchisor to serve areas outside your defined Delivery Area [p.49, p.90].
What training and ongoing support does the franchisor provide?
The franchisor provides various refresher training, re-certification courses, and other training at times and locations designated by EA. New or additional on-site managers must complete these trainings if hired during the term of the franchise agreement. Franchisees are responsible for paying related costs such as travel and living expenses. The franchisor may discontinue or modify any ongoing training course or method in its sole discretion [p.105].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of December 31, 2024, the financial performance representation does not include data from 2 new franchises that were less than one year old, and it excludes 113 operational franchises that permanently closed during the same period [p.64].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor may provide financial performance information if there is a reasonable basis for it. This can include actual records of an existing outlet you are considering buying [p.63]. However, the franchisor does not make any financial performance representations other than providing such information upon request and does not authorize its employees or representatives to make such representations either orally or in writing [p.66].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain products; however, EA may condition your right to buy or lease Operating Assets on their meeting minimum standards and specifications. Additionally, you can obtain items from any supplier who meets these requirements, making them considered approved suppliers [p.31]. This isn't specified in the excerpts regarding where you must buy supplies specifically for operating the business.