In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Edible Arrangements franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for the Edible Arrangements franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Edible Arrangements’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average gross sales for the franchised Edible Arrangements Businesses in the United States (including non-traditional locations) that were open and operating for more than 3 years as of December 31, 2014
- 2014 average gross sales for the franchised Edible Arrangements Businesses in the United States (including non-traditional locations) that were open and operating for at least 2 years, but less than 3 years, as of December 31, 2014
- 2014 average gross sales for the franchised Edible Arrangements Businesses in the United States (including non-traditional locations) that were open and operating for at least 1 year, but less than 2 years, as of December 31, 2014
Section I – Background Information
Edible Arrangements, the fresh-fruit version of floral arrangements, continues to get stronger after 15 years of delighting recipients with beautiful arrangements they hate to ruin but love to eat.
Edible Arrangements pulled up to No. 40 in the 2015 Franchise 500, published in December 2014 by Entrepreneur magazine, which measures criteria such as financial strength and stability, growth rate and system size, as well as age of the business, how long it has been franchising, startup costs and more.
The National Center for the Middle Market named Edible Arrangements its Company of the Month in November 2014. The honor recognizes companies for significant success in their industries or categories.
Some of the company’s success can be attributed to the technological savvy of founder and CEO Tariq Farid, who has branched out to share his tech bounty with other franchises.
Farid in December 2014 launched Naranga, a technology company focusing on software that helps franchise companies and small businesses combine their sales, operations and marketing.
“Naranga’s products will allow franchise chains to take control of their brand with simple, flexible tools that drive sales, improve operational efficiency, and allow them to easily connect with their franchisees,” Farid wrote in a post on his blog. “The bottom line is that we are making it as easy as possible for others to take advantage of the latest advances in technology in order to become even more competitive in the marketplace.”
To create Naranga, he acquired another company, eMaximation, a franchise services and technology provider, and rebranded the company. He also expanded their products and services.
Farid’s history in tech goes back to the 1980s and his work in the floral shop he bought in East Haven, Connecticut, when he was just 17. While running the business, which grew to include several additional locations, Farid developed a computerized point-of-sale system designed for floral shops. In 1991, he started his own business selling computer systems to businesses that sold flowers, a venture that would later become Netsolace, a computer software distribution company serving franchise companies.
Farid opened the first Edible Arrangements store in 1999 with his brother, Kamran Farid, in Hamden, Connecticut. After they developed the company’s computer systems, training manuals, production and profitability tracking and supply chain management process, their first official franchise location opened in Waltham, Massachusetts. The company, headquartered in Wallingford, Connecticut, reached 500 franchise locations in 2006 and 1,000 locations in 2013.
The ‘WOW’ Factor
The company’s mission is “To WOW You.” Edible Arrangements asks that people share their “WOW-Worthy” experiences and advertises “Fresh WOWs Daily” in the stores.
Customers can buy fresh fruit arrangements featuring strawberries (the mainstay), pineapple, melons and other fresh fruits, designed to resemble flowers in attractive arrangements. Also available in the stores are gourmet chocolate dipped fruits (individual pieces as well as boxed selections), fresh fruit salads and pineapple cake pops.
New Strawberry Arrangement for Mom
Mother’s Day is the busiest weekend of the year for Edible Arrangements. A new addition to the Mother’s Day collection in 2015 was the Mother’s Day Signature Berry Box, a strawberry-shaped box that opens to show a tiered tray of a dozen strawberries dipped in semisweet gourmet chocolate, along with additional toppings.
New Smoothies at Edible to Go Stores
In addition to the company’s regular stores, customers can visit the kiosk-style Edible to Go locations for chocolate-covered strawberries, fruit salads, sundaes, parfaits, fruit smoothies, fresh lemonades and freshly squeezed orange juice.
New in January 2014 at Edible to Go stores were Green Smoothies, which pair kale with fruits like pineapple, banana, honeydew and cantaloupe, and Chocolate Indulgence Smoothies in Chocolate Strawberry, Chocolate Banana and Chocolate Pineapple flavors.
DiPippa, Price named CFO, President
Tony DiPippa became chief financial officer in June 2015. He was most recently the CFO of North American Finance for Cache, a mall-based retailer.
Rob Price was named president of Edible Arrangements International in May 2014. Price most recently was senior vice president and chief marketing officer for CVS Pharmacy.
Section II – Estimated Costs
- Please click here for detailed estimates of Edible Arrangements franchise costs, based on Item 7 of the company’s 2015 FDD (updated).