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.
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
| Initial Investment | $183,600-$409,700 |
| Franchise | YES |
| Franchising Since | 2001 |
| Franchise-Fee | $30,000 |
| Royalty-Fee | 5% |
| Liquidity | $80,000 |
| Estimated Outlets | 1300+ |
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
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.
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.
Franchise Owner Salary
Considering that the profit margin is about 20% to 25% and an average store makes $570,000-$600,000 annually on overall sales, we are left with about between $114,000 and $142,500 as the 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
An Edible Arrangement franchise store can cost anywhere between $183,600 and $409,700. If we say that, on average, a store makes $120,000 in annual profit, the payback period is between 2 to 4 years.
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
| Name | Franchise Fee | Royalty Fee | Initial Investment |
| Cookies by Design | $30,000 | N/A | $120,000-$220,000 |
| Fruit Flowers | $35,000 | 5% | $147,000-$218,950 |
| Edible Arrangements | $30,000 | 5% | $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.
Sources
https://global.ediblearrangements.com/Resources/edible-arrangements-brochure.pdf