Risk Score
Pending analysis
Investment Range
$240,000 - $531,000
Franchise Fee
$20,000
Total US Locations
792
Business Summary
Edible Arrangements operates businesses that sell sculpted fruit floral arrangements, floral bouquets, and other fruit-related products. These businesses also offer home goods like vases and candles, plush animals, candy, popcorn, nuts, coffee, and teas. Key offerings include gift baskets made with fresh fruit, chocolate-covered fruit, fruit smoothies, fruit salads, cookies, cakes, cheesecakes, and individual-serving-size baked goods such as cupcakes, fruit and yogurt products, and dessert boards. Edible Arrangements locations also feature "Edible Treats," which are quick-serve items like fruit smoothies, sundaes, pops, and dipped fruit. Products are prepared following specific recipes and procedures, emphasizing fresh fruit and chocolate. Customers can order and pick up products in-store or have them delivered.
Corporate History
The Edible Arrangements business concept began in 1999, with the sale of fresh fruit products under the EDIBLE ARRANGEMENTS® name starting in late 1998 from the principal's floral business. The original franchisor, Edible Arrangements International, Inc., a Connecticut corporation, was established in June 2000 and began offering EDIBLE ARRANGEMENTS® Business franchises in approximately June 2001. In February 2012, as part of an internal corporate restructuring, Edible Arrangements International, LLC (now Edible Arrangements, LLC) was formed as a Delaware limited liability company through a merger, transitioning the corporate structure. The company formally changed its name to Edible Arrangements, LLC in July 2018.
Financial Overview
Investment Range
$240,000 - $531,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$169,000
Equipment Costs (High)
$417,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Edible Arrangements' financial statements for 2023 and 2022 received an unqualified opinion from independent auditors, indicating that they present fairly the company's financial position. For the fiscal year ending December 31, 2023, Edible Arrangements reported operating income of $889,921 and net income of $2,059,923. In 2022, the company's operating income was $6,142,852, and net income was $8,771,119. Cash and cash equivalents significantly increased from $263,157 in 2022 to $2,564,558 in 2023. The financial notes indicate that in December 2022, the company transferred approximately $4.5 million from its National Advertising Fund accounts to affiliate bank accounts as a liquidity management action, with a significant portion returned in early 2023. As of December 31, 2023, the company had $16,015,000 in unsecured, non-interest-bearing advances due from affiliates, which are classified as a long-term asset. Past corporate guarantees for affiliated entities, totaling over $21 million in 2022, were paid in full by March 2023.
Financing Details
Edible Arrangements does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees are solely responsible for arranging their own financing.
Performance Metrics
Total US Locations
792
Franchised Units
791
Corporate Units
1
Avg Square Footage
1,400
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Edible Arrangements has had five litigation cases disclosed in its FDD, two of which are ongoing as of the FDD issuance date. Historically, in 2008, a former franchisee sued Edible Arrangements for breach of contract, which was settled in 2014. In 2015, another franchisee initiated arbitration, alleging the franchisor failed to comply with state notice requirements for non-renewal; Edible Arrangements settled this by purchasing the franchisee's business. Around 2019-2020, three franchisees filed an arbitration against Edible Arrangements, an affiliate, and the CEO, alleging various contractual breaches and misappropriation of funds. This dispute was settled in 2021 with Edible Arrangements purchasing the three stores. Two cases are currently ongoing: In 2020, a former vendor, Card Isle Corporation, sued Edible Arrangements, an affiliate, and the CEO for breach of contract, trade secret misappropriation, and copyright infringement. In August 2023, the court granted summary judgment for Edible Arrangements on several claims, but a breach of contract claim is still pending trial. Additionally, in 2022, an existing franchisee in Canada, 1769123 Alberta Ltd., filed a lawsuit against Edible Arrangements alleging false promises and multiple breaches of its franchise agreement. This case has been moved to arbitration as of November 2023 and is ongoing.
Bankruptcy History
Edible Arrangements has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Edible Arrangements franchisees must fulfill several conditions. They need to provide written notice of their intent to renew between 9 and 12 months before their current term expires. Franchisees must be in good standing, having substantially complied with all provisions of their agreement, including all payment obligations, and not having committed any events of default. They may be required to remodel or refurbish their existing store, or relocate to a new acceptable site, to meet the franchisor's then-current brand image and System Standards for new Edible® Businesses, with all work completed by the original agreement's expiration date. Franchisees must satisfy all outstanding monetary obligations to the franchisor, its affiliates, and approved suppliers, and sign the franchisor's then-current form of franchise agreement, which may include materially different terms like higher fees or a modified delivery area. Additionally, a renewal fee of $5,000 is required, and franchisees must comply with current qualification and training requirements, paying all applicable training fees. Finally, they must execute a general release of any and all claims against Edible Arrangements and its related parties.
Training & Support Program
Franchisor Assistance
Before an Edible Arrangements business opens, the franchisor assists with site selection by providing criteria and helping determine site feasibility, though the franchisee is ultimately responsible for selection. The franchisor also accepts the store's lease if it meets requirements, provides mandatory specifications and layouts for the store, identifies approved suppliers for operating assets and products, grants access to its Operations Manual, and licenses its proprietary software. Initial training is provided to the franchisee (or managing owner) and one on-site manager, covering operational aspects of the business. During operation, Edible Arrangements advises on promoting brand quality, offers additional guidance and training (at the franchisee's cost if requested or required), provides ongoing access to the Operations Manual (which may be updated electronically), and modifies System Standards as needed. The franchisor inspects businesses for compliance, allows use of its confidential information and trademarks, permits participation in the Franchise System Website, offers refresher training courses, and maintains a National Marketing Fund for advertising and marketing programs.
Initial Training Hours
75
Training Location
Online, franchisee's store location, or another designated store location
Ongoing Support
After an Edible Arrangements business opens, franchisees receive ongoing support in several ways. The franchisor provides advice on maintaining brand quality and may offer recommendations on operational standards, purchasing, advertising, training, and administrative procedures. Franchisees have continuous access to the Operations Manual, which is regularly updated online, and may receive additional guidance or training if requested or required. The franchisor also inspects businesses to ensure compliance with System Standards and helps resolve operational issues. Franchisees are allowed to use the franchisor's confidential information and trademarks. Refresher training courses are periodically offered, and franchisees must send a representative to annual or biennial conventions. Furthermore, the franchisor maintains a National Marketing Fund for advertising, marketing, and public relations, contributing to system-wide brand promotion.
Franchise Requirements
Ideal Candidate Profile
Edible Arrangements does not explicitly state a detailed ideal candidate profile for its franchisees beyond financial capability and a commitment to operating the business in accordance with its system. However, the franchisor does require that if a franchisee chooses not to be personally involved in the day-to-day operation, they must hire a full-time, on-site manager. This manager must satisfactorily complete the initial training and pass an operations proficiency test to become certified. This indicates that whether it's the franchisee or a hired manager, the individual overseeing daily operations needs to be trained, certified, and capable of managing the business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Territory Size Requirements
Edible Arrangements grants franchisees a non-exclusive Delivery Area for their business. This Delivery Area is designed to encompass a working and/or living population of at least 75,000 people, which the franchisor determines using various demographic factors. The Delivery Area's boundaries are defined and may be revised periodically by Edible Arrangements using geographic markers such as cities, counties, zip codes, streets, or natural boundaries. Franchisees must operate and service their Delivery Area seven days a week, including major holidays.
Staffing Notes
Edible Arrangements requires franchisees to employ sufficient staff to operate the business at all times. Franchisees have the sole responsibility for their labor relations and employment practices, including hiring, firing, wages, and working conditions. While the franchisor may provide System Standards for employee dress and general appearance, it does not control specific employment decisions. Franchisees are not required to personally participate in the day-to-day operations but must hire a full-time, on-site manager if they choose not to. This manager, or the managing owner if involved, must complete the franchisor's initial training program to its satisfaction and pass an operations proficiency test to become certified. At least one manager in the store must be fluent in English to communicate effectively with customers and for training purposes. The full-time on-site manager must also reside in the state where the store operates. Franchisees must clearly communicate to their employees that the franchisee is the sole employer, and Edible Arrangements is not an employer or joint employer.