This post was updated on July 2, 2017 to reflect information from Edible Arrangements’ 2017 FDD (Item 7).
Detailed Estimates of Edible Arrangements Franchise Costs Based on Item 7 (Estimated Initial Investment) of Edible Arrangements’ 2017 Franchise Disclosure Document
- Except for the security deposit and perhaps some utility deposits, no expenditure in this table is refundable. The total investment does not include applicable sales and other taxes in your area or any costs for required items specific to your circumstances.
- You will not incur most of these costs if you are renewing your franchise or acquiring an existing franchise because the Business already is open. However, as a condition of renewal or approval of the franchise sale, you must make certain upgrades, modifications, and improvements at your Business (in particular, the store location) to meet the company’s current standards. Your costs will depend on the current size and condition of your Business (in particular, the store location).
1. Initial Franchise Fee: $20,000 to $30,000
2. Real Estate/Rent (1 month): $2,000 to $8,000
- Your Business’s store location will occupy approximately 700 to 1,500 square feet of space.
- Your rent depends on geographic location, the store’s size, local rental rates, businesses in the area, site profile and desirability, and other factors.
- Edible Arrangements Business locations typically are in strip shopping centers, street-level stores, and other venues in both downtown commercial areas and suburban areas.
- The location in all cases should have adequate facilities to refrigerate, store, and prepare your products and their ingredients and to service customers. The location should be visible, accessible to prospective customers, and conveniently located to make deliveries in your Delivery Area.
- The high end of the range reflects rent that might be due in higher cost real estate markets (for example, California and New York).
- In Edible Arrangements’ experience, a franchisee’s rent obligation typically (but not always) starts approximately 90 days after the lease is signed; that coincides with the approximate date by which you must begin operating your Business.
3. Security Deposit (1 month): $2,000 to $8,000
4. Build-Out – Vanilla Box: $30,000 to $100,000
- Store improvement costs — including floor covering, wall treatment, ceilings, painting, window coverings, electrical, carpentry and similar work, and contractor’s fees — depend on the store’s condition, location, and size; the demand for the site among prospective lessees; the site’s previous use; the build-out required to conform the site for your Business; how many contractor bids you obtain for the work; and construction or other allowances the landlord is willing to grant.
- The lower figure assumes the landlord bears many store improvement costs (even though it then might amortize those costs by charging you higher monthly rent). The higher cost might be incurred in markets where contractor and other services are more expensive.
- “Vanilla Box” refers to a commercial building with a minimally-finished interior, i.e., usually with ceilings, lighting, plumbing, heating and cooling (HVAC), interior walls (painted or unpainted), electrical outlets, elevators, rest rooms, and a concrete floor.
5. Equipment, including Computers (and installation): $93,200 to $103,200
- This includes walk-in and/or display cooler, fruit cutting equipment, fruit and other product preparation equipment, containers, preparation counters, storage space, flooring, sinks, office furniture, point-of-sales system, digital menu, and computer, including installation, telephones, and facsimile machines.
6. Signage (including shipping and installation): $5,000 to $10,000
7. Printing & Graphics (including shipping): $2,750
8. Delivery Vehicle Monthly Lease or Loan Payment: $1,500 to $1,800
- You must buy or lease an approved delivery vehicle, with commercially installed refrigeration and insulation, from the franchisor’s designated source and decorate it with special graphics. Third party financing is available.
- This figure shows the initial monthly payment based on a lease or loan term of 3 to 5 years. The franchisor estimates the total purchase cost at approximately $32,000 to $38,000 depending on which type of vehicle you choose.
9. Opening Inventory (including shipping): $15,000 to $16,500
- This includes fresh fruit, chocolate, yogurt, toppings, gift baskets, cutting tools, packaging, non-branded paper products, cleaning supplies, uniforms, contract forms, invoices, brochures, statements, printing supplies, and office supplies.
10. Grand Opening Marketing: $10,000
- You must spend at least $10,000 on a grand opening marketing program, including newspaper and direct mail advertising and promotional items.
11. Training Expenses (for each attendee): $1,000 to $1,900
12. Insurance (1 month): $1,500 to $3,000
- You must obtain and maintain certain types and amounts of insurance. Insurance costs depend on policy limits, deductibles, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure.
- Most franchisees pay their insurance premiums monthly if that option is available. However, 25% of the annual premium might be required as a first installment.
13. Miscellaneous Opening Costs: $1,500 to $2,500
- This estimates other costs you might incur in the start-up phase, including business licenses, legal and accounting fees, and deposits for telephone service and gas, electric, and other utilities.
14. Additional Funds (3 months): $10,000 to $30,000
- This item estimates the funds needed to cover your initial expenses for the first 3 months of operation (besides the funds identified separately in the table). It includes payroll costs but not any draw or salary for you.
- However, this is only an estimate, and you might need additional working capital during the first 3 months you operate your Business and for a longer time period afterward.
- The franchisor relied on its affiliates’ 18-plus years of operating, and its almost 17 years of franchising, Edible Arrangements Businesses to compile this Additional Funds Estimate.
15. Total Estimated Initial Investment (including lease costs but not real estate purchase costs): $195,450 to $327,650