1-800-Flowers.com Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$18,500 - $932,500
Total US Locations
51
Business Summary
1-800-Flowers.com Franchise Co., Inc. offers franchises for retail flower shops. These shops provide a wide variety of products to the public, including fresh flowers, plants, fruit products like fresh cut fruit bouquets, cookies, candy, gift baskets, and other gift and novelty items. The company also offers personalized gift options and related services.
Corporate History
1-800-Flowers.com Franchise Co., Inc. was established as a Delaware corporation on February 8, 2000. It operates as a wholly-owned subsidiary of 1-800-Flowers.com, Inc., through another subsidiary, 1-800-Flowers Retail Inc. The larger 1-800-Flowers enterprise, including its predecessors and affiliates, has been active in the floral and gift business since 1970. 1-800-Flowers.com Franchise Co., Inc. began offering franchises for retail flower shops under the 1-800-Flowers brand in April 2002. In June 2010, the company introduced its Co-Brand Franchise Program, allowing existing independent flower shops to co-brand with 1-800-Flowers. The Fruit Bouquets Program was later launched in October 2011, enabling franchisees to offer fruit bouquets from their existing 1-800-Flowers or co-branded units. As of June 30, 2024, the system included 17 franchisees operating 22 standard 1-800-Flowers retail flower shops, 7 design centers, and 18 franchisees operating 21 co-branded retail flower shops. The parent company also operates company-owned retail stores and has affiliates like Conroy's and Flowerama that offer franchises under separate disclosure documents.
Financial Overview
Investment Range
$18,500 - $932,500
Franchise Fee (High)
$30,000
Royalty %
6%
Equipment Costs (Low)
$97,500
Equipment Costs (High)
$520,000
Working Capital
$105,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
1-800-Flowers.com Franchise Co., Inc. may experience operating losses and negative cash flows as it continues to develop its market and expand its operations. There's no guarantee that the company will achieve its business plan or generate enough cash flow to sustain itself. However, the parent company has committed to providing additional financial support, through loans, advances, or capital investments, until at least October 8, 2025, if needed. Additionally, a special risk note in the FDD indicates that the franchisor's financial condition, as reflected in its financial statements, raises questions about its ability to provide services and support to franchisees.
Financing Details
1-800-Flowers.com Franchise Co., Inc. offers direct financing for certain aspects of the franchise. Franchisees can finance a portion of the purchase price for a company-owned 1-800-Flowers shop, with terms typically ranging from 1 to 2 years and an interest rate equal to the prime rate plus 1% to 2%. For new Standard Franchised Units, or for remodeling, signage costs, and successor franchise fees, 1-800-Flowers.com Franchise Co., Inc. may offer to finance up to $30,000, provided the franchisee meets criteria such as a minimum credit score of 650. This financing is generally repayable over 1 year with a 7% annual interest rate. If a franchisee adds a Fruit Bouquets Business, an additional $30,000 for build-out and signage costs may be financed under similar terms. All financing is secured by a personal guarantee and a security interest in the franchise's assets. There are no prepayment penalties for these loans. Failure to make payments can result in termination of the franchise agreement and repossession of assets.
Performance Metrics
Total US Locations
51
Franchised Units
50
Corporate Units
1
Avg Square Footage
2,650
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
1-800-Flowers.com Franchise Co., Inc. has disclosed two legal actions. The first was a determination by the State of Maryland in June 2014, concluding that 1-800-Flowers.com Franchise Co., Inc. violated Maryland Franchise Law by offering and selling co-brand franchises without providing the current registered Disclosure Document, not requiring a state-specific addendum, and collecting initial fees prematurely. 1-800-Flowers.com Franchise Co., Inc. entered into a Consent Order and paid a $5,000 civil monetary penalty without admitting fault. The second case, Arizona Family Florists, LLC, et al. v. 1-800-Flowers.Com, Inc., et al., was filed in May 2016 by franchisees. The lawsuit alleged various claims including breach of contract, unfair competition, consumer fraud, negligent misrepresentation, and fraudulent inducement, seeking substantial damages and injunctive relief. The plaintiffs claimed that 1-800-Flowers.Com, Inc. and its affiliates breached order fulfillment agreements, failed to renew them, did not pay commissions, and made misrepresentations about their fruit bouquets program. 1-800-Flowers.Com, Inc. denied the allegations and filed counter-claims. The Miami Plaintiffs' claims were settled and dismissed in February 2017 without monetary payment. The claims of the remaining Arizona and Ft. Lauderdale Plaintiffs were settled in January and March 2022, respectively, for total payments of $150,000 and $275,000, with no admission of liability and mutual releases. Both of these disclosed litigations are now resolved.
Bankruptcy History
1-800-Flowers.com Franchise Co., Inc. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
1-800-Flowers franchisees wishing to renew their franchise for an additional term of up to 10 years must meet several conditions. They must maintain good standing throughout the initial term, meaning they consistently comply with all terms of their Franchise Agreement, Sublease or Third-Party Lease, and any other agreements with 1-800-Flowers or its affiliates, and have not accumulated three or more material defaults within any 18-month period. The franchised location must remain suitable according to current site criteria, and the franchisee (or 1-800-Flowers if under a Master Lease) must maintain a right to possess it. Franchisees are required to renovate, refurbish, redecorate, and/or remodel their 1-800-Flowers unit to conform to current brand standards and specifications before the expiration date. They must also comply with current qualification and training requirements. A written request for renewal must be submitted to 1-800-Flowers six months prior to the expiration date. Upon renewal, 1-800-Flowers franchisees must sign the then-current Successor Franchise Agreement and pay a $30,000 successor franchise fee (which may be reduced if the new term is less than 10 years). If the franchisee is an entity, all owners and their spouses must sign a personal guarantee. Additionally, all franchisees must execute 1-800-Flowers' then-current General Release. If the franchisee also operates a Fruit Bouquets Business, they must pay an additional $7,500 successor franchise fee for that program and may be required to sign a current Fruit Bouquets Addendum.
Training & Support Program
Franchisor Assistance
1-800-Flowers provides comprehensive support to its franchisees both before and after opening. Before opening, 1-800-Flowers assists with site criteria, sample layouts, preliminary plans, and décor specifications. They review the franchisee's plans and offer consultation on construction, renovation, and equipment, providing lists of designated and approved suppliers. A final inspection is conducted to authorize opening. Initial training is provided for the Principal Owner and General Manager, with virtual options available, and franchisees receive access to the Franchise Manual and other operational manuals. After opening, 1-800-Flowers continues its support by reviewing all marketing materials, setting quality and service standards, and offering additional and remedial training programs, including mandatory refresher courses every five years. They conduct periodic inspections to ensure operational compliance and offer counseling and advisory services on various aspects of business operation, including marketing, purchasing, and record-keeping. Some training and inspections may be conducted virtually. Additionally, 1-800-Flowers supplies updated lists of approved suppliers, tests new recommended suppliers, offers a uniform accounting system, defends its trademarks, provides pricing guidelines, and updates its operational manuals regularly.
Initial Training Hours
144
Training Location
Jericho, New York headquarters, designated locations in Jacksonville, Florida, through a virtual communication platform, and/or at a franchised unit or company-owned 1-800-Flowers shop
Ongoing Support
After opening, 1-800-Flowers provides its franchisees with a range of ongoing support services. This includes regular reviews of marketing and promotional materials, and the determination of quality, service, production, merchandising, and marketing standards. Franchisees and their managerial personnel receive continuing training and education updates through videos, conventions, workshops, and meetings, with mandatory refresher courses every five years. 1-800-Flowers may offer up to one week of on-site assistance, and conducts periodic inspections to assess operational status and compliance. Franchisees can access counseling and advisory services on various operational aspects, such as problem-solving, new developments, customer relations, record-keeping, purchasing, and marketing. Both training and inspections can also be provided virtually. Additionally, 1-800-Flowers supplies updated lists of approved suppliers, tests new recommended suppliers, offers a uniform accounting system, defends its trademarks, and provides pricing guidelines and updated operational manuals.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
non-exclusive
Staffing Notes
The staffing requirements for a 1-800-Flowers franchise center around a designated Principal Owner and, if needed, a General Manager. The Principal Owner must hold at least a 51% equity interest in the franchise and is expected to serve as the primary operator, dedicating full-time attention and best efforts to the business during operating hours. If the Principal Owner is absent from day-to-day operations, a General Manager must provide direct, on-premises supervision. Both the Principal Owner and General Manager are required to attend and successfully complete the initial training program and pass a certification test. All personnel employed by 1-800-Flowers franchisees must maintain the franchisor's standards for sanitation, cleanliness, and demeanor, and receive training according to the franchisor's operational standards. Any supervisorial or managerial employees with access to confidential information must sign non-disclosure agreements. The franchisee retains sole responsibility for all hiring, firing, training, remuneration, and compliance with employment laws, even when receiving guidance from 1-800-Flowers.