For a Flowerama franchise, to whom is the payment for opening supply inventory made, and when is it due?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
s arranged | Upon purchase | Vehicle dealer | | | TOTAL10 | $227,000 - $855,000 | | | | |
Your Estimated Initial Investment Standard Flowerama Center Real Estate Purchased
| Type Of Expenditure | Amount4 | Method Of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee1 | $17,500 - $35,000 | Cashier's Check | On signing Franchise Agreement | Us |
| Travel and Living | $1,000 - $8,000 | As incurred | During training | To Airlines, Hotels, |
| Expenses while Training2 | Restaurants | |||
| Leasehold and | N/A | |||
| Improvements3 | ||||
| Land & Building8 | $325,000 - $750,000 | As Incurred | Upon purchase & completion | Real Estate Seller & Contractor |
| Equipment | $35,000 - $75,000 | As arranged | Before opening | To supplier |
| Fixtures | $20,000 - $40,000 | As arranged | Before opening | To supplier |
| Signs | $10,000 - $15,000 | As arranged | Before opening | To supplier |
| Awnings | $7,500 - $35,000 | As arranged | Before opening | To supplier |
| Opening Merchandise | $25,000 - $75,000 | Lump sum | As incurred | To supplier |
| Inventory | ||||
| Opening Supply | $6,000 - $8,000 | Lump sum | Before opening | B |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–29)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, the recipient and due date for the opening supply inventory payment depends on the type of franchise. For a co-brand franchise (existing Flowerama Center), the opening inventory payment, ranging from $2,500 to $5,000, is payable to BloomNet, and/or Napco, and Suppliers before opening. For a standard Flowerama Center, the opening merchandise inventory payment, which ranges from $25,000 to $75,000, is payable to the supplier as incurred. For a start-up co-brand franchise with real estate purchased, the opening supply inventory is payable to BloomNet and/or Napco, and Suppliers before opening, with the amount ranging from $6,000 to $8,000.
Prospective franchisees should note that the specific suppliers and the exact amount due may vary. It is important to clarify with Flowerama which suppliers are approved and what the typical inventory requirements are for a new location. This will help in accurately budgeting for the initial investment.
It is also important to note that these payments are generally non-refundable, so franchisees should carefully consider their inventory needs before making these purchases. Understanding the refund policies of BloomNet, Napco, and other suppliers is crucial to mitigating potential financial risks.