Flowerama Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$18,500 - $1,169,000
Total US Locations
40
Business Summary
Flowerama operates retail centers specializing in the sale of fresh cut flowers, floral arrangements, green and blooming plants, artificial flowers, and a variety of floral and plant accessories and gifts. The franchise also offers fresh fruit products, including fresh cut fruit bouquets. Flowerama focuses on a 'cash and carry' approach, aiming to provide quality floral products at everyday affordable prices, making them accessible for regular purchases rather than just special occasions. Franchisees can operate a standard Flowerama Center, a co-branded Flowerama Center with the 1-800-Flowers brand, or integrate a Fruit Bouquets Program into their existing center.
Corporate History
Flowerama of America, Inc. was incorporated in Iowa on April 22, 1966. Flowerama began operating company-owned retail floral centers in enclosed shopping malls in 1970 and started franchising these mall-based centers in 1972. By July 1990, Flowerama ceased offering these mall franchises. In 1986, the company opened a freestanding retail floral center, which proved successful and became the focus of its future development. Flowerama has offered franchises for these freestanding centers since April 1988. In August 2011, Flowerama became a wholly-owned subsidiary of 1-800-Flowers.com, Inc., through its subsidiary 1-800-Flowers Retail Inc. Currently, Flowerama offers franchises for standard Flowerama Centers, co-branded centers with the 1-800-Flowers brand, and an optional Fruit Bouquets Program.
Financial Overview
Investment Range
$18,500 - $1,169,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$6,000
Equipment Costs (High)
$495,000
Working Capital
$93,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Flowerama's financial statements for the fiscal year ended June 30, 2024, received an unqualified opinion from its auditors, Hogan Hansen. While the auditor's report noted the standard requirement for management to evaluate going concern, it implied no substantial doubt, and Flowerama confirmed no valuation allowance was necessary for deferred tax assets. However, Flowerama's balance sheet for June 30, 2024, shows current assets of $856,348 against current liabilities of $982,274, indicating negative working capital of $125,926. This is a potential area of concern for its short-term liquidity. Additionally, Flowerama has a significant balance of $6,390,285 due from its parent and affiliates, for which fixed repayment dates and interest terms have not been established. All of Flowerama's assets are also pledged as collateral for its parent corporation's credit facility.
Financing Details
Flowerama offers direct financing to franchisees who meet specific criteria, including a minimum credit score of 650. Franchisees may be eligible to finance up to $30,000, which can be used for the build-out of their Flowerama Center and/or the purchase and installation of signage. If franchisees choose to add the Fruit Bouquets Program, they may receive up to an additional $30,000 for build-out costs and signage related to that program. For renewal terms, Flowerama may also offer financing of up to an additional $30,000 for remodeling costs, signage costs, or a portion of the Renewal Franchise Fee. These financing offers are discretionary and determined on a case-by-case basis. Loans generally carry an interest rate of 7% per annum and are repaid over 1 year, though these terms can vary. Franchisees are required to sign a Promissory Note, and if the franchisee is an entity, its owners must provide a personal guarantee and grant Flowerama a security interest in the center's assets. Flowerama does not provide or arrange any other direct or indirect financing and does not guarantee other franchisee obligations.
Performance Metrics
Total US Locations
40
Franchised Units
32
Corporate Units
8
Avg Square Footage
2,000
Franchising Since
1972
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Flowerama has disclosed two significant litigation cases involving its affiliates. In June 2014, the State of Maryland concluded that Flowerama's affiliate, 1-800-Flowers, violated Maryland Franchise Registration and Disclosure Law between February 2013 and February 2014. The violations included offering and selling conversion programs without providing the then-current Maryland registered Franchise Disclosure Document, not requiring a state-specific addendum, and collecting initial franchise fees prematurely. Without admitting guilt, 1-800-Flowers entered a Consent Order and paid a $5,000 civil monetary penalty. Separately, in May 2016, several 1-800-Flowers franchisees (Arizona and Fort Lauderdale plaintiffs, plus others who later settled) filed a complaint against 1-800-Flowers.Com, Inc., 1-800-Flowers .Com Franchise Co., Inc., and BloomNet, Inc. The plaintiffs alleged breach of contract, common law unfair competition, consumer fraud, and misrepresentations regarding the Fruit Bouquets Program, seeking over $13.5 million in damages. 1-800-Flowers denied the allegations and filed counter-claims. The Arizona plaintiffs reached a settlement in January 2022 for $150,000, and the Fort Lauderdale plaintiffs settled in March 2022 for $275,000. Both settlements involved no admission of liability and included mutual releases. No other litigation is required to be disclosed by Flowerama.
Bankruptcy History
Flowerama has no bankruptcy history to report for itself or its key personnel. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew their Flowerama franchise agreement, franchisees must be in full compliance with the agreement, have satisfied all monetary obligations, and not have accumulated three or more defaults within any 18-month period during the preceding 10 years of the agreement. Franchisees are also required to agree to remodel their Flowerama Center according to current standards, renew their lease (if applicable), and sign a General Release of claims. If a franchisee has the Fruit Bouquets Program, they must pay its specific renewal fee. Franchisees purchasing a start-up Co-Brand Flowerama Center must pay a $30,000 renewal fee. Flowerama may require franchisees to sign a new franchise agreement with different terms and conditions at the time of renewal.
Training & Support Program
Franchisor Assistance
Flowerama provides comprehensive assistance to its franchisees, starting before the center opens. Pre-opening support includes helping with site selection and approval, approving designs and plans for construction or remodeling, and lending a confidential Operations Manual. Flowerama also offers an initial training program (minimum 4 weeks) for the franchisee and/or a designated managerial employee, conducted in Cedar Falls, Iowa, Jericho, New York, and/or virtually. Additional pre-opening help includes assistance with advertising, obtaining suppliers, and ordering and displaying initial inventory. After a Flowerama Center opens, franchisees receive ongoing support, which typically involves a field representative assisting on-site for 7 to 10 days. Flowerama provides counseling and advisory services on business planning, operations, new developments, purchasing, advertising, hiring, and accounting. Field representatives conduct periodic inspections and are available for consultations. Virtual consultations and inspections are also offered. Additionally, Flowerama specifies and provides ongoing technical support, maintenance, repair services, and upgrades for required point-of-sale (POS) systems, such as BloomNet Business Management System and Visual Ticket.
Initial Training Hours
160
Training Location
Cedar Falls, IA, Jericho, NY, and/or virtual communication platform
Ongoing Support
After opening their Flowerama Center, franchisees receive ongoing support from Flowerama. This includes a field representative present for 7 to 10 days to assist with initial operations. Flowerama provides counseling and advisory services upon request and at no additional charge, covering business planning, operating problems, new developments, purchasing, advertising and marketing programs, employee hiring and training, and administrative, bookkeeping, and accounting procedures. This guidance is provided through the Operations Manual, supplemental written materials, and telephone consultations. Flowerama representatives periodically inspect the Flowerama Center premises and are available to confer with franchisees or managerial personnel. Virtual consultations and inspections are also available. Flowerama also specifies required point-of-sale (POS) systems and provides ongoing technical support, maintenance, and repair services, along with upgrades and updates for these systems.
Franchise Requirements
Ideal Candidate Profile
Flowerama seeks franchisees who are either committed to dedicating at least 40 hours per week of their physical presence at the center or are capable of designating a qualified supervisorial or managerial person to manage the day-to-day operations. Franchisees should have a minimum credit score of 650 to qualify for financing opportunities, and strong management skills and experience are considered important for success. While previous floral industry experience is not strictly required, it may allow for a waiver of parts of the initial training.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
full-time
Territory Type
Protected
Territory Size Requirements
Flowerama grants a minimum protected territory consisting of a one-mile radius from the franchisee's Flowerama Center. Within this territory, Flowerama will not establish or franchise any other Flowerama Center.
Staffing Notes
Flowerama requires franchisees to maintain adequate inventories and trained personnel to serve the public effectively. Franchisees must provide sufficient and proper supervisorial or managerial personnel for the center's operation. All employees are solely the franchisee's responsibility, and the franchisee is responsible for all hiring, firing, training, remuneration, and compliance with employment laws. Flowerama does not control employee decisions but provides standards for training, competence, cleanliness, and demeanor, which all personnel must maintain. Supervisorial or managerial personnel who access confidential information must agree to maintain its confidentiality. Flowerama also requires all employees to wear uniforms or modes of dress that comply with established policies, with the cost borne by the franchisee.