Standard Program
The Standard Program offers franchises for retail flower shops that sell flowers, plants, gift items, and fruit bouquets under the 1-800-Flowers.com brand. Known for delivering floral arrangements nationwide, this franchise operates in the florist and specialty food industries.
Standard Program franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment varies depending on which program you choose: - For the Standard Franchise Program, it ranges from $258,500 to $932,500. - For the Co-Brand Franchise Program, it is between $57,150 and $164,250. - For the Fruit Bouquets Program, it is between $18,500 and $53,500. [p.1]
What is the initial franchise fee?
The initial franchise fee varies depending on the type of franchise and additional factors. For standard franchises, it is $30,000. Additionally, for fruit bouquets, there is an extra initial franchise fee; however, if this addendum is part of a second or subsequent shop agreement signed by October 1, 2024, the fee can be reduced to $3,500. This isn't specified in the excerpts for other types of franchises besides fruit bouquets. [p.89, p.166]
What are the ongoing royalty and advertising fees?
According to [p.5], you must make minimum royalty or advertising fund payments, regardless of your sales levels. Your inability to make these payments may result in termination of your franchise and loss of your investment.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the length of the initial franchise agreement or renewal terms beyond mentioning conditions under which a franchise might not be renewed without fair compensation [p.205].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely transfer ownership of your franchise without good cause as specified by the franchisor [p.205]. However, the franchisor has the right to transfer its own rights or obligations under the agreement, including in cases where it sells assets, merges, or is acquired [p.124]. Good cause for refusing a transfer includes but is not limited to unspecified criteria.
On what grounds can the franchisor terminate the agreement?
According to [p.205], a franchisor can terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision in the franchise agreement and curing such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts focus on financial statements, insurance requirements, and working capital needs post-franchise acquisition but do not detail specific net worth or liquid capital qualification criteria for prospective franchisees.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. The franchise agreement explicitly states that the granted franchise is non-exclusive and does not provide any area, market, exclusive, or protected territorial rights [p.95]. You may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides additional and remedial training programs to the franchisee and their supervisorial and managerial employees through various means such as videos, conventions, workshops, and meetings [p.113]. These trainings cover the operation of a 1-800-Flowers shop and are deemed necessary by the franchisor in its discretion. Franchisees are responsible for expenses related to attendance, including transportation, lodging, meals, training materials, and wages [p.58].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that there are 15 franchisees who co-branded their existing flower shops with 1-800-Flowers in the last three years, and 15 franchisees operating various retail units. However, the number of franchised outlets that have closed or been terminated is not specified in the provided excerpts. This information can be found in Exhibit O, which lists franchisees who had their agreements terminated, cancelled, or otherwise ceased operations during a specific period. [p.82]
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about future financial performance or past performance of company-owned or franchised outlets [p.77]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.77]. Financial performance information can be provided under certain conditions, such as having a reasonable basis and being included in the Disclosure Document [p.77].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only those goods and services that the franchisor has approved [p.66]. You must purchase or lease all goods, merchandise, services, supplies, fixtures, equipment, and inventory from designated or approved suppliers according to the franchisor's standards and specifications [p.35]. Specifically, you must purchase certain products from BloomNet.net, a division of BloomNet, and/or Napco as required by the franchisor [p.36].