Edible Arrangements franchise is a franchise that specializes in fresh fruit arrangements. Are you looking for a fruit-based franchise to invest in or do you just want to know about edible arrangements franchise? Then read through as we shall discuss the cost of opening an edible arrangements franchise in this article.
Cost of Opening Edible Arrangements Franchise
You’re in for a treat because Edible Arrangements is now available for franchising! To franchise this business, you will need $80,000 in liquid capital and a net worth of $250,000.
The investment ranges from $183,600 to $409,700, with a franchise fee of $30,000.
Fees and Financial Requirements
|Total Investment||$183,600 to $409,700|
Other fees to be aware of include 5% royalty fees for edible arrangements franchises and 3.5% ad royalty fees.
In terms of discounts, they provide a veteran bonus of $10,000 off the first store’s franchise fee.
Edible Arrangements is also available for franchising outside the United States, though the global brand fee is unknown.
According to one unofficial source, the investment required to buy an Edible Arrangements franchise in Canada ranges from CAD $240,310 to CAD $441,900.
Annual Sales / Revenue Average
Edible Arrangements generates millions of dollars in revenue each year. It made $600 million in sales in 2019.
There was even an 18% increment in the first 6 months of 2020 when the pandemic began. From mid-2020 to 2021, earnings from Gen Z consumers will increase by 100%.
This is a concept that has done well in an environment that has been difficult for many food businesses.
Facts About Edible Arrangements Franchise
Tariq Farid founded Edible Arrangements in 1999 in East Haven, Connecticut. Farid had prior experience running a flower shop called Farid’s Flowers in 1985.
Edible Arrangements sells fresh fruit bouquets after combining his flower shop idea with a desire for fruit baskets.
After visiting Chris Dellamarggio’s shop several times, Farid was motivated to franchise in the year 2000. Edible Arrangements franchise’s first location opened a year later in Waltham, Massachusetts.
Edible Arrangements currently operate over 1,000 stores in the United States, Canada, Saudi Arabia, Puerto Rico, the United Arab Emirates, Qatar, and Kuwait. Besides fresh fruit bouquets.
Edible Arrangements sell chocolate-covered fresh fruits, cookies, cupcakes, cheesecakes, gourmet popcorn, and other packaged gifts for events or special occasions.
Edible Arrangements franchise also sells ready-to-eat treats like parfaits, salads, fruit smoothies, and mixed fruit yogurt drinks.
The company has an effective customer relations program. They have over 2 million members in their rewards and loyalty program.
Customers who sign up for the loyalty program receive benefits such as a free birthday present, a surprise gift, and a faster checkout process.
Many consider Edible Arrangements to be a leading brand in the retail and gift-giving industry. They made the Entrepreneur’s Franchise 500 list as well as the Top 40 list of “Fastest Growing Franchises.”
They were also included in the Inc. 5000 list.
Despite having so many outlets, the Edible Arrangements franchise is still keen on expanding globally. Their expansion goals are:
- GCC Countries
- Central America
- Caribbean Region
- United Kingdom
You have two options if you want to own an Edible Arrangements franchise.
You can be a Master Franchisee, which allows you to sub-franchise Edible Arrangements to other people in the area, or a Traditional Multi-Unit Franchisee, which allows you to run one outlet with one owner.
Some Master Franchise agreements give you the authority to run an entire country or region.
Tariq Farid, the company’s founder, is still in charge. The company is based in Atlanta, Georgia.
How Much Profit Does Edible Arrangements Make?
There are no official figures on how much profit the Edible Arrangements franchise makes, however according to Franchise Times, an average Edible Arrangements store that has been open for three years makes $153,000 more in sales in 2019 than in past years.
Toward the end of 2020, the overall average volume, or AUV, was almost $570,000. This equates to $570,000 in yearly revenue for the average store.
Naturally, total sales need not equal profit. When you consider ingredient costs, labor, renting a retail space, and, of course, taxes, operating an Edible Arrangements store has significant overhead.
According to industry averages, it is not unusual for gift basket companies to earn a 30% profit on sales. If the industry average proves true, a traditional Edible Arrangements store could expect to make $171,000 in profit per year.
Cost control is crucial in all food businesses as with all businesses. To stay profitable as a franchisee, you will need to do everything possible to minimize food waste, bargain lease agreements, and regulate labor costs.
The Benefits of Owning an Edible Arrangements Franchise
Why should you choose the Edible Arrangements franchise? Here are some benefits.
Strength of Delivery
Most Edible Arrangements are delivered directly to the recipient’s home or office.
Because of this strategy, the company’s total sales increased by 45% during the pandemic, as more consumers ate and work from home. During this time, the company developed and expand its product offerings.
Although the company is best known for its fruit baskets, it offers much more. This year, the company began selling baked goods such as muffins and cookies, as well as flowers and greeting cards.
The company also began delivering fruit platters for personal home use. This product and service drew customers who did not want to leave their homes or go to the grocery store.
The attraction of the Edible Arrangements marketing plan is that you gain more customers with each product sold. For example, you not only get the customer who is giving the gift, but the beneficiary also learns about your company.
With each sale, you gain more potential future customers who have interacted with the brand and had a good experience with it.
Edible Arrangements have big plans for its brand. The company plans to open 40 stores, each with an area of 1,200 to 1,800 square feet. In addition, they intend to sign 160 franchises.
They’re also expanding their product offerings beyond just fruit, such as gourmet popcorn and platters instead of just bouquets and boxes. Lately, the company added dessert and charcuterie boards to its menu.
Edible Arrangements releasing new products shows that the company is constantly growing and innovating, which you may benefit from as a franchisee so your customers have something to look forward to now and then.
You will be trained at the prestigious Edible University regardless if you’re a sub-franchisee, master franchisee, or store owner.
his is the 2-week franchise training course that Edible Arrangements requires before opening a store. There will be lectures and hands-on activities where you will learn about fruit protection, how to operate their software, and how to make the arrangements.
Edible Arrangements’ establishment of a “university” for franchisees makes this a fun way for new business owners to gain knowledge on how to run the business.
It also shows the company’s commitment to preparing you for success.
The Difficulties of Running an Edible Arrangements Franchise
Edible Arrangements faces challenges even after being in business for 20 years. Below are a few things you should expect as a franchise owner.
Poor Customer Service
Customers have been critical of Edible Arrangements’ poor after-sales service. A Yelp user claimed that calls concerning their complaint about an undeliverable order were not returned.
The failure of Edible Arrangements to have their goods shipped or delivered even made it into local news. With this level of poor customer service, reconsider whether you want to franchise with them.
Of course, customer service is a challenge for all food businesses. However, this concept is more complicated because the product is frequently delivered to a remote location.
A fruit bouquet may look beautiful when it leaves the store, but anything could happen on the way to its destination.
Dealing with these types of customer issues, unfortunately, comes with the territory.
A company that sells fruits as gifts will be challenged, especially in shipping and handling. Customers have complained that the fruits they got from Edible Arrangements were rotten.
This review of a Denville store included a photo of a banana that did not appear to be fresh. Another employee claimed on social media that the company uses stale strawberries. Another person stated that the apples they got were brown.
As we all know, there are ongoing issues with the worldwide supply chain. Companies like Edible Arrangements suffer because of these shipping delays because their product goes bad quickly.
Fast and efficient shipping is critical to the business. Nobody wishes to receive a basket of brown fruit.
These shipping delays reduce franchisee profitability. And besides, if you get fruit later, you’ll waste more food as a business if you can’t get customers quickly.
In the occasion of ongoing supply chain delays, this gift/food business is not properly positioned. Other food companies, such as McDonald’s, that sell frozen products, can survive longer delivery delays.
Edible Arrangements has received complaints from franchisees in Quebec who blames the company for profit losses.
Last year, a couple of franchise owners sued the company for $2.7 million for a failure to plan it’s marketing strategies like not providing marketing materials in French or neglecting Canadian Thanksgiving, which would have resulted in more sales.
The franchisees also complained that Edible Arrangements were unable to provide them with adequate support for their product shipping, software, and stock issues.
One franchise owner even claimed to have faced religious discrimination.
Such complaints cause damage to the Edible Arrangements brand and may deter future franchisees from joining them. Before investing in any concept, read feedback from franchise owners.
Although no franchise opportunity is perfect, knowing the concerns of current operators will be beneficial to you.
Frequently Asked Questions
Edible Arrangements appears to have a lot of mixed reviews, so it’s best to proceed with caution. Some areas appear to be doing well, while others appear to be struggling to find company support.
If you intend to franchise Edible Arrangements, consider all of your possibilities, read about other franchise owners’ experiences, and visit them to find out more about the company.