What efforts are Flowerama franchisees required to make in selecting a franchised location?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
tial Center operations for a period of seven (7) to ten (10) days.
- D. We will furnish to you, on loan, a confidential operations manual ("Operations Manual"). The Operations Manual shall remain our property at all times, is subject to change during the term of this Agreement, and you shall comply with any such changes. Upon expiration or termination of this Agreement, the Operations Manual, and any copies thereof, must be returned to us.
- E. We will aid you in obtaining sources of supply.
- F. Provide a complete list of the equipment, fixtures, supplies and inventory necessary for the Center to open for business. We will also assist you in ordering and the display of your initial inventory.
- G. We will provide assistance in your pre-opening promotion and advertising efforts to promote the opening of your Center.
- H. We may provide any or all portions of the initial training program, pre and postopening on-site opening assistance, post-opening consultations and/or post-opening inspections remotely over a virtual communication platform designated by us.
5. SITE SELECTION – FRANCHISED LOCATION.
A. Selection of Franchised Location. You shall exert your best efforts to select the Franchised Location.
(i) You shall diligently exert your best efforts to select a Franchised Location in your geographic area of interest whether presented by us or identified by you, in accordance with our site selection criteria.
(ii) You shall submit proposed sites for our approval in the manner designated by us from time to time. Proposed sites will be submitted to us only after you have determined that the site is available on generally acceptable terms.
(iii) We will review each proposed site and approve, reject or provide comments to you regarding the site within thirty (30) days after our receipt of each site proposal. We will have the sole and absolute discretion to reject sites we deem inappropriate as a location for a Flowerama Center.
(iv) We will provide you with our site selection criteria and with a sample layout for the interior of a typical Flowerama Center, and with a typical set of preliminary plans and décor specifications promptly following your request for these items after the Franchised Location is selected by you and approved by us.
(v) We will bear all expenses in connection with our review of proposed sites only for such period of time as you, in good faith, submit carefully investigated and selected sites for our review and approval.
(vi) If you have not selected an approved Franchised Location within twelve (12) months from the date of this Agreement, we may terminate this Agreement.
(vii) You shall submit a proposed "Third-Party Lease" (as defined below) to us to allow us at least fifteen (15) days to confirm that the provisions set forth in subsection (viii) below have been included in the proposed Third-Party Lease and that the landlord (the "Third-Party Landlord") and you have executed an Option to Obtain Lease Assignment in the form specified by us. You shall then execute the Third-Party Lease only after you obtain our written approval of the site and the terms and conditions of the Third-Party Lease.
(viii) Following the selection and approval of the site, we shall require you to enter into a direct lease (a "Third-Party Lease") for the Franchised Location with a Third-Party Landlord of an approved site.
Source: Item 23 — RECEIPTS (FDD pages 77–300)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, franchisees are required to exert their best efforts in selecting a franchised location. This involves diligently seeking a location in their preferred geographic area, whether the site is presented by Flowerama or identified by the franchisee, while adhering to Flowerama's site selection criteria. Franchisees must submit proposed sites for approval after determining they are available on generally acceptable terms.
Flowerama will review each proposed site within thirty days of submission, either approving, rejecting, or providing comments. The franchisor maintains sole discretion to reject sites deemed inappropriate for a Flowerama Center. Flowerama will provide its site selection criteria and a sample layout for the interior of a typical Flowerama Center, along with preliminary plans and décor specifications, after the location is selected and approved. Franchisees are responsible for submitting a proposed Third-Party Lease to Flowerama, allowing at least fifteen days for review to ensure specific provisions are included and that an Option to Obtain Lease Assignment has been executed with the landlord.
The franchisee can only execute the Third-Party Lease after receiving written approval from Flowerama regarding both the site and the lease terms. Flowerama's approval does not constitute a warranty regarding the profitability or success of the Flowerama Center at the selected location. If a franchisee fails to secure an approved location within twelve months from the date of the Franchise Agreement, Flowerama reserves the right to terminate the agreement.
Flowerama also requires franchisees to enter into a direct lease (Third-Party Lease) with a Third-Party Landlord for the approved site. As a condition of approving the Third-Party Lease, Flowerama requires the franchisee and the Third-Party Landlord to grant Flowerama an option to assume the lease obligations if the Third-Party Lease or the Franchise Agreement is terminated. This includes the right to enter the Flowerama Center to de-identify and modify the location to remove any distinctive features identifying it as a Flowerama Center.