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Considering an Edible Arrangements Franchise? Don’t Overlook These 39 Important Franchise Fees

by Franchise Chatter on January 1, 2017

in Franchise Fees, Fruit Bouquet Franchise



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If you are considering an Edible Arrangements franchise, don’t get blindsided by these 39 important franchise fees (from the initial franchise fee, to the royalty fee, to 37 other fees found in Items 5 and 6 of Edible Arrangements’ 2016 FDD).

1.  Initial Franchise Fee:  $15,000 to $30,000

  • You must pay Edible Arrangements a lump sum initial franchise fee when you sign the Franchise Agreement. Its standard initial franchise fee for new franchisees currently is $30,000.
  • If you or your principal owner is an existing franchisee acquiring another franchise, the initial franchise fee typically is $20,000 rather than $30,000. However, as a special incentive, Edible Arrangements may offer existing franchisees or their principal owners acquiring another franchise a reduced initial franchise fee of $15,000.

2.  Royalty:  5% of Business’s weekly Gross Sales or $200, whichever is more (Minimum Royalty may be up to $40 daily if Edible Arrangements requires daily Royalty payments)

  • Due Date:  Due on Monday of each week on Gross Sales during previous week ending Saturday (unless Edible Arrangements specifies a different payment period or chooses to debit your account daily).
  • “Gross Sales” means all of your revenue from operating the Business (including your share of customer sales made through the EDIBLE CONNECT Program), but excluding taxes collected from customers if paid to taxing authority and reduced by refunds, credits, and allowances the Business in good faith gives customers.
  • Gross Sales also include insurance proceeds you receive for loss of business due to a casualty or similar event at your store location.

3.  Marketing Fund (“Fund”):  currently 2% of Business’s weekly Gross Sales (Edible Arrangements may increase this up to a total of 5% of Gross Sales if it concurrently and proportionately reduces your minimum local advertising and Area Cooperative obligations)

  • Due Date:  Due on Monday of each week on Gross Sales during previous week ending Saturday (unless Edible Arrangements specifies a different payment period or chooses to debit your account daily).
  • Your total minimum Fund contribution and local advertising and Area Cooperative obligations will not exceed 5% of your Gross Sales (but see “Special Advertising and Promotional Programs” below).

4.  Local Advertising:  3% of Store’s weekly Gross Sales

5.  Area Cooperative:  up to 5% of Store’s Gross Sales

  • Due Date:  As Area Cooperative directs.

6.  Special Advertising and Promotional Programs:  as Edible Arrangements periodically directs based on franchisee vote, but currently 4% of Store’s Gross Sales

  • Due Date:  As generally incurred, but currently due on Monday of each week on Gross Sales during previous week ending Saturday (unless Edible Arrangements specifies a different payment period or chooses to debit your account daily).
  • Besides your Fund contributions and local advertising and Area Cooperative obligations described above, you must participate in any national, regional, or local advertising or promotional programs approved by a majority of franchisees operating within the particular geographic area and, to the extent there are insufficient monies in the Fund or one or more Area Cooperatives available for or allocated to these programs, pay the necessary funds.
  • These potential expenditures are not included in the 5% cap referenced above.
  • Since late 2007, Edible Arrangements franchisees annually have approved additional weekly payments (up to 4% of Gross Sales) for annual National Television Advertising Campaigns.
  • Edible Arrangements collects the additional amounts until it covers the campaign’s costs, which are estimated before the vote is taken based on Edible Arrangements’ research of advertising sources.
  • The current participation level is 4% of Gross Sales, which Edible Arrangements expects to remain in place through 2016.

7.  EDIBLE CONNECT Program Fees (including “Edible for Business” fee, formerly referenced as the “Edible Concierge” fee):  Edible Arrangements reserves the right to charge up to 20% of price paid for order

  • Edible Arrangements currently charges 2% on total payment for each “standard” customer order placed through the on-line ordering system on its Website.
  • Edible Arrangements charges 20% on total payment for each order its call center takes (an “Edible for Business” order) if a customer call is re-routed back to call center for handling after a store location does not pick up original call forwarded to it.
  • Due Date:  As incurred.
  • Edible Arrangements and/or third party may deduct the fee from customer’s payment for order and pay you the balance.

8.  Computer Software and Technology, Support, and Upgrades:  currently $165 to $300 per month (depending on number of users and locations)

  • Due Date:  As incurred.
  • Edible Arrangements and/or its affiliates may charge you up-front and recurring (e.g., weekly, monthly, or other) fees for proprietary software or technology licensed to you and related support services.
  • The fee may increase as costs increase.
  • These fees are different from fees Edible Arrangements and its affiliates may charge for your presence on or participation in the Franchise System Website and any EDIBLE CONNECT Program fees.

9.  Computer Systems, Maintenance, and Support:  costs of service

  • Due Date:  As incurred.
  • This covers computer system support (besides the items identified in the previous line-item).
  • Edible Arrangements does not now provide these services and therefore does not have a set charge.

10.  Franchise System Website:  current charge is up to $200 per month (not to exceed $300 per month)

  • Due Date:  As incurred.
  • Edible Arrangements may charge you a separate fee to be on or participate in the Website if the Fund or Edible Connect, LLC does not cover these costs. Edible Connect, LLC currently pays for maintaining and updating the Franchise System Website.

11.  Training for Additional or Replacement People When You Attend Initial Training Program:  currently $600 per person (not to exceed $1,500 per person)

  • Due Date:  Beginning of training.

12.  Additional Training or Assistance During Franchise Term:  currently $400 per day plus expenses for training at Edible Arrangements’ location; currently $500 per day plus expenses for training at your location (in both cases not to exceed $1,500 per day)

  • Due Date:  When training or assistance begins.
  • Edible Arrangements provides initial training for 2 people at no additional cost; it may charge you for training more than 2 people during initial training program (see previous line-item); for training newly-hired personnel; for refresher training courses; and for additional or special assistance or training you need or request.

13.  Owner Re-Training for Renewal of Franchise:  currently approximately $500 per person for 2 days (not to exceed $1,500 per person)

  • Due Date:  Beginning of training.

14.  Manager Certification:  currently approximately $400 per person for 2 days (not to exceed $1,500 per person)

  • Due Date:  Beginning of training.

15.  Renewal:  $5,000

  • Due Date:  Upon franchise renewal.

16.  Transfer of Franchise Agreement or Controlling Ownership Interest:  $10,000

  • Due Date:  Generally, ½ due (and nonrefundable) when you request transfer approval; balance due before transfer completed.
  • Due on transfer of Franchise Agreement or controlling ownership interest in you or your owners, except no charge if, upon a spouse’s death, the spouse’s interest in Franchise Agreement and Business, or the spouse’s ownership in you, is transferred to surviving spouse.

17.  Transfer of Non-Controlling Ownership Interest:  $500

  • Due Date:  Due (and nonrefundable) when you request transfer approval.
  • Due on transfer of non-controlling ownership interest in you.

18.  Incorporation Fee:  $350

  • Due Date:  Due (and nonrefundable) when you request approval.
  • Due if you want to assign Franchise Agreement held by you individually to a legal entity for convenience of ownership.

19.  Entity Name Change Fee:  $350

  • Due Date:  Due (and nonrefundable) when you request name change.
  • Due if you want to change name of franchisee legal entity.

20.  Product and Service Purchases

  • Due Date:  As incurred.
  • You will buy products, supplies, and services from (i) Edible Arrangements or it affiliates, (ii) designated and approved vendors whose items meet Edible Arrangements’ standards and specifications and (iii) other suppliers to the industry in which Edible Arrangements Businesses operate.

21.  Testing:  costs of testing when you make request

  • Due Date:  When billed.
  • This covers costs of testing new products or inspecting new suppliers you propose.
  • Edible Arrangements currently has no set fee for this because it has not done this testing.

22.  Convention:  will vary under circumstances (not to exceed $2,500 per person; does not include your actual out-of-pocket attendance costs)

  • Due Date:  As incurred.
  • You (or your designated representative Edible Arrangements approves) must attend Edible Arrangements’ annual or biennial franchise conventions and pay an attendance fee.
  • Edible Arrangements will charge this fee even if you do not attend.

23.  Franchise Resale Assistance:  5% of sales price (but capped at $10,000) (you also must pay transfer fee)

  • Due Date:  As incurred.
  • You must pay this amount if you want to sell your franchise and Edible Arrangements finds a buyer for you. You must sign its Franchise Resale Agreement or a similar document specifying Edible Arrangements’ and your obligations if Edible Arrangements helps you sell your franchise.

24.  National Advisory Council Fee:  reimbursement of costs for Council’s administration and operation

  • Due Date:  When billed.
  • You must participate in any National Advisory or similar council Edible Arrangements establishes, and pay assessments and dues.
  • Edible Arrangements currently does not charge any assessments or dues.

25.  Audit:  cost of inspection or audit, which may be up to $2,500 per day

  • Due Date:  15 days after billing.
  • Due if you do not give Edible Arrangements reports, supporting records, or other required information, or understate required Royalties or Fund contributions by more than 3%.

26.  Late Fee:  $50 for each 30-day period a payment is late

  • Due Date:  When billed.

27.  Non-Approved Opening:  $200 for each day Business operates without Edible Arrangements’ approval

  • Due Date:  When billed.
  • Due if you begin operating Business before Edible Arrangements approves.

28.  Non-Compliance Fee:  $250 per violation

  • Due Date:  When billed.
  • Due (at Edible Arrangements’ option) if you deviate from contractual requirements, including System Standards. This compensates Edible Arrangements for administrative and management costs, not for its damages due to your default.

29.  Reconciliation Fee:  $50

  • Due Date:  When billed.
  • Due if Edible Arrangements must reconcile your account because you did not submit a weekly report.

30.  Daily Close-Out:  $50

  • Due Date:  When billed.
  • Due if you do not close out your sales daily.

31.  Processing Fee:  up to $250 per day

  • Due Date:  When billed.
  • Processing fee applies if Edible Arrangements must apply incoming customer payments against your past due balance to it or others or must manually push funds to your account because of your customer service issues or order fulfillment issues.

32.  Proprietary Materials Non-Return Fee:  $5,000

  • Due Date:  As incurred.
  • Due for each piece of proprietary equipment or other materials you do not return to Edible Arrangements when required.

33.  Operations Manual:  cost reimbursement

  • Due Date:  15 days after billing.
  • If you lose access to Operations Manual due to your own fault, you must reimburse Edible Arrangements’ costs for regaining access for you.

34.  Management Fee:  $400 per person per day (plus costs and expenses)

  • Due Date:  As incurred.
  • Due when Edible Arrangements manages the Business after your or your managing owner’s death or disability, or after your default or abandonment.

35.  Costs and Attorneys’ Fees:  will vary under circumstances (depending on extent of your noncompliance)

  • Due Date:  As incurred.
  • Due when you do not comply with the Franchise Agreement.

36.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You must reimburse Edible Arrangements if it is held liable for claims from your Business’s operation or incurs costs defending them.
  • Similar indemnification obligation exists under Netsolace Software License and Maintenance Agreement.

37.  Store Maintenance Costs:  will vary under circumstances (depending on extent of your noncompliance)

  • Due Date:  As incurred.
  • You must reimburse Edible Arrangements if it incurs costs to maintain your store location’s condition because you fail to do so.

38.  Insurance Reimbursement Costs:  will vary under circumstances (depending on extent of your noncompliance)

  • Due Date:  As incurred.
  • You must reimburse Edible Arrangements if it obtains insurance coverage for you.

39.  Tax Reimbursement:  out-of-pocket cost reimbursement

  • Due Date:  As incurred.
  • You must reimburse Edible Arrangements for any taxes it must pay to any state taxing authority on account of either your operation or your payments to Edible Arrangements (except for its income taxes).



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