In this FDD Talk 2017 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 an Edible Arrangements franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Edible Arrangements franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Edible Arrangements’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average gross sales for the franchised Edible Arrangements Businesses in the United States that were open and operating for 3 or more years as of December 31, 2016
- 2016 average gross sales for the franchised Edible Arrangements Businesses in the United States that were open and operating for at least 2 years, but less than 3 years, as of December 31, 2016
- 2016 average gross sales for the franchised Edible Arrangements Businesses in the United States that were open and operating for at least 1 year, but less than 2 years, as of December 31, 2016
Section I – Background Information
11 Things You Need to Know About the Edible Arrangements Franchise
Edible Arrangements Seeks to Dismiss Proposed Class Action Lawsuit
1. Toward the end of June, Edible Arrangements urged a New Jersey federal judge to dismiss a proposed class action suit that claims the company makes it unreasonably hard for customers to opt out of receiving advertising text messages, saying the messages would have ended if the customer had simply texted “stop.”
2. In its motion, Edible Arrangements says that plaintiff Nicole Rando never replied “stop” to opt out of its messages and instead ignored “simple instructions, deciding rather to text back verbose sentence-long requests, completely ignoring clearly articulated and legally compliant opt-out instructions.”
3. Rando filed suit in February 2017, alleging that Edible Arrangements violated the Telephone Consumer Protection Act by giving customers only one way to stop receiving its advertising messages. Rando says that her texts saying “Take my contact info off please” and “I asked to be removed from this service a few times. Stop the messages,” should have stopped the texts.
4. However, Edible Arrangements says that the company gives clear instructions to text “stop” to end the messages. The company also says that if the court decides to proceed with the case, it should drop the class action claims, as Rando’s situation is too individualized for a class action and that it would be difficult to determine whether the variety of potential messages sent by customers were all attempts to opt out of receiving the ads.
Aggressive International Expansion Campaign
5. In early June, Edible Arrangements announced plans to “aggressively expand” its international presence – the brand plans to open more than 100 new locations internationally over the next three years. According to Tariq Farid, CEO and founder of Edible Arrangements, since the company has established a strong foothold in the U.S., global expansion is the brand’s next opportunity for major growth.
6. As part of Edible Arrangements’ plans for international expansion, the company has selected World Franchise Associates to help identify prospective development partners specifically in the GCC (Gulf Cooperative Council), MENA (Middle East and North Africa), and Southeast Asian markets.
April Fool’s Day Joke
7. To celebrate April Fool’s Day, Edible Arrangements announced that it would be offering a new product, the Buffalo Wing Bouquet paired with Edible’s Blue Cheese Dressing. According to the press release, the new spicy chicken wing bouquet would be assembled with celery sticks, carrots, and popcorn chicken – the brand even posted a convincing product photo of the bouquet on its website.
8. Edible Arrangements ended the press release by saying the bouquet was a joke and offered customers a $10 off coupon code and the chance to win a box of the brand’s popular Dipped Fruit Trio by filling out an online form letting Edible Arrangements know what their idea of the craziest arrangement would be.
9. The first Edible Arrangements store was opened in 1999 by Tariq Farid and his brother Kamran Farid in East Haven, Connecticut. Franchising began in 2001 after the Farids designed the computer systems, training manuals, production and profitability tracking and supply chain management processes. The first franchised location opened in Waltham, Massachusetts.
10. In 2009, Edible Arrangements signed its first international master franchise agreements in Italy and Hong Kong. Over the next decade, Edible Arrangements continued to expand in the U.S. and internationally and by 2011, the company had signed its 1,000th franchise agreement. Today, there are over 1,200 Edible Arrangements locations around the world.
Entrepreneur’s Franchise 500
11. Edible Arrangements has earned a spot on Entrepreneur’s annual Franchise 500 list every year in the last decade. The company has always ranked in the Top 100 – its highest rank was No. 35 in 2016, while its lowest rank was No. 56 in 2007.
Section II – Estimated Costs
- Please click here for detailed estimates of Edible Arrangements franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Edible Arrangements’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
Average and Median Gross Sales for Edible Arrangements Businesses for Fiscal Year Ending December 31, 2016
- This historical financial performance representation discloses the average and median gross sales of all franchised Edible Arrangements Businesses in the United States that were open and operating for 1 year or longer as of December 31, 2016.
- It is divided among (1) Businesses that were open and operating for 3 or more years as of December 31, 2016, (2) Businesses that were open and operating for at least 2 years, but less than 3 years, as of December 31, 2016, and (3) Businesses that were open and operating for at least 1 year, but less than 2 years, as of December 31, 2016.
- This financial performance representation does not include Businesses that were not open for at least 1 year as of December 31, 2016 or that closed sometime during 2016, regardless of how long the Business operated during 2016.
- This financial performance representation includes Businesses operated by franchisees but excludes the 5 Businesses operated by the franchisor’s affiliates as of December 31, 2016.
- No Businesses operating outside the United States are included in this financial performance representation.
- The figures below do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit.
- As of December 31, 2016, there were 1,137 Businesses open and operating in the United States (1,132 franchised and 5 affiliate-owned). There were another 56 franchise agreements signed as of December 31, 2016 for Businesses to be operated in the United States that were not yet open as of that date.
- 1,079 Businesses (out of 1,132 in operation as of December 31, 2016) are included in this financial performance representation.
- “Gross Sales” in the table below are defined as gross receipts net of sales tax. All of the Businesses reflected below are virtually identical to the type of Business you will operate if you acquire an Edible Arrangements franchise and sell the same products and services.
Businesses Open 3 or More Years