Edible Arrangements Franchise Owner Salary & Failure Rate 2024

Are you thinking about being a part of a niche industry, and Edible Arrangements is one of the companies you are interested in? Getting involved with them might be a good idea as they are a big company and professionals in franchising to those interested.

If you are looking to learn more about Edible Arrangement franchise and its system, you are in the right place.

We will give you an overview of the company, its fees, and costs, answer frequently asked questions, and compare it to other competitors.

Edible Arrangements Franchise

About Edible Arrangements and Edible Arrangements History

Edible Arrangements is a franchise-focused business offering fruit arrangements and creating fruit baskets with flower arrangement inspired designs.

They started doing business in 1999 in the United States and quickly started franchising in 2001 with the goal of expanding the business.

Even though the company struggled a little bit during COVID-19, it started to pick things up quickly again and increased its sales by 32% on an annual basis in 2020.

They are a lucrative franchise business with over 2 million people in their rewards and loyalty program. In addition, they are also a low-cost franchise business.


Franchise Model Table

Cost Or FeesAmount
Initial Investment      $183,600-$409,700
FranchiseYES
Franchising Since2001
Franchise-Fee$30,000
Royalty-Fee5%
Liquidity$80,000
Estimated Outlets1300+

How Much Does it Cost to Open an Edible Arrangements Franchise?

How Much Does it Cost to Open an Edible Arrangements Franchise

The total expected cost to open an Edible Arrangements franchise store is between $183,600 and $409,700.

This total cost includes all the related start-up costs like the franchise fee, 1-month real estate rent, equipment, and others.

Depending on certain conditions, like the business size and location, the costs might be higher than expected.


Franchise Requirements

Edible Arrangements does not require an extensive personal background for their franchisees.

If you have experience in store management, sales, or marketing, that is a plus but not a necessity.

The franchisee must have a liquid cash of at least $80,000 and a net worth of at least $250,000. Also, Edible Arrangements requires their stores to be in locations where the population is a minimum of 75,000.

Other than these requirements, there aren’t any obligations you need to fulfill for approval, but you can increase your chances with extras.


Edible Arrangements Franchise Profit & Revenue

Edible Arrangements Franchise Profit & Revenue

According to the latest available numbers, Edible Arrangement’s annual revenue for the year 2019 was $400 million as a company.

An Edible Arrangement franchise store’s average annual revenue is about $644,000. The industry’s average profit margin is between 20% and 25%, which is pretty much the same for Edible Arrangements.

So as per this we can see that an Edible Arrangement franchise owner makes approximately $128,800 in net profits per year on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%644000.00
Rent10.00%(64400.00)
Insurance5.00%(32200.00)
Salaries20.00%(128800.00)
Franchise Royalty Fees5.00%(32200.00)
Utilities2.00%(12880.00)
Cost of Goods Sold (COGS)25.00%(161000.00)
Labor (Variable)13.00%(83720.00)
Total (Expenses)80.00%(515200.00)
Net Profit20.00%128800.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Overall Sales

Overall sales numbers for an average franchised store, also known as average unit volume, were about $570,000 in 2020.

This means that, on average, most Edible Arrangements franchise stores make a little over half a million dollars.


How Much Does an Edible Arrangement Franchise Owner Earn?

Considering that the profit margin is about 20% to 25% and an average store makes $644,000 annually on overall sales, we are left with about between $128800 in net profit.

If the owner is the sole owner of the store, the owner gets to keep all the profit as their salary.


Payback Period

The total investment of Edible Arrangement is $409,700 and the yearly profit is $120,000. So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $409,700 / $128,800 = 3.41 years

Based on these figures, it will take approximately 4 years to pay back the initial investment for Edible Arrangements. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Edible Arrangement

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191,091983-108
2020983920-63
2021920885-35

For the Franchised outlets:

  • In 2019, the failure rate was (108)/1,091×100≈9.90%
  • In 2020, the failure rate was (63)/983×100≈6.41%
  • In 2021, the failure rate was (35)/920×100≈3.80%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201925+3
202052-3
2021210+8

For the Company-Owned outlets:

  • In 2019, the growth rate was (3)/2×100≈150%
  • In 2020, the failure rate was (3)/5×100≈60.00%
  • In 2021, the growth rate was (8)/2×100≈400%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191,093988-105
2020988922-66
2021922895-27

For Total outlets:

  • In 2019, the failure rate was (105)/1093×100≈ 9.61%
  • In 2020, the failure rate was (66)/988×100≈6.68%
  • In 2021, the failure rate was (27)/922×100≈2.93%

According to the above-mentioned data, we can see that the franchised outlets for Edible Arrangement declined from 2019 to 2021, showing a failure rate between 9.90% and 3.80%.

On the other hand, for company-owned outlets, the growth rate of Edible Arrangement lying in the range between 150% and 400% for 2019 and 2021. The company also experienced decrease in the number of outlets in 2020, showing a failure rate of 60.00%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Edible Arrangement franchise has declined in the years 2019-2021, showing a total failure rate between 9.61% and 2.93%.


Training and Support

Edible Arrangements Franchise Training and Support

Except for the employee relations and contractual labor practices, the franchisor will train either the owner or the responsible manager on the operations of the Edible business.

Depending on the situation, the training required might include different types. Some of these are store training, corporate training, administrative requirements, and all other operational topics.


Terms of Agreement and Renewal

The initial term of the franchise agreement is for 10 years. At the end of the first 10-year period, if both sides are in good standing and both sides want to renew the agreement, it’s possible to do a renewal.

The renewal is for an additional 10-year term and costs $5,000.


Obligations and Restrictions

Franchisees are obligated to manage the entire labor relationships and employment practices according to the franchise agreement.

The franchisee is not obligated to be present at the store for daily operations, but they recommend doing so. However, if the owner will not oversee the operations, then the franchisee must employ a manager who will do this job on-premises, full-time.

Lastly, the franchisee is restricted from selling any kind of product that Edible Arrangements doesn’t approve. They are also obligated to sell all the products and services the franchisor asks for.


Financial Assistance

The franchisor does not offer direct or indirect financial assistance to the franchisee. They do not guarantee any kind of financial obligation towards the franchisee.

Franchisees are obligated to find their own financing through traditional methods.


Edible Arrangements Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Cookies by Design$30,000N/A$120,000-$220,000
Fruit Flowers$35,0005%$147,000-$218,950
Edible Arrangements$30,0005%$183,600-$409,700

Edible Arrangements Franchise: Conclusion

Edible Arrangements is a franchise-focused business in a niche industry with over 2 million customers on their reward system.

They have massive potential to make good money as the average store makes over $500,000 annually on overall sales. They do not require an experienced personal background as long as you have the finances to open the store.

That’s why Edible Arrangements is an excellent opportunity for both beginner and experienced entrepreneurs looking to own a franchise store.

If you comply with the requirements, you can easily apply to be a part of their franchise network.


Edible Arrangements Franchise: FAQ

How much is the franchise fee for Edible Arrangements?

The one-time franchise fee is $30,000, which you pay before you sign the agreement.

Is there a renewal fee after the first agreement is over?

Yes, if you are eligible for a renewal, you have to pay a renewal fee. This fee is $5,000 and gives you the right for another ten-year period.

Can everyone be a part of Edible Arrangements?

If you comply with the requirements and have enough cash and experience, you can apply to be an Edible Arrangements franchise.

Who owns Edible Arrangements?

The parent company of Edible Arrangements is Edible Brands Inc. It is the pioneer and world leader in high-quality, artistically designed fresh fruit arrangements.

Where is Edible Arrangement headquartered?

The headquarters of Edible Arrangements is in Atlanta, Georgia.

Who founded Edible Arrangement?

Tariq Farid is the founder and current CEO of Edible Arrangements.

How Many Locations Does Edible Arrangement Has?

Edible Arrangement is operating in more than 1,000 locations nationwide.

Sources

https://global.ediblearrangements.com/Resources/edible-arrangements-brochure.pdf

https://en.wikipedia.org/wiki/Edible_Arrangements

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