If a Flowerama franchisee does not manage the Center daily, what obligations do they still have?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
You must devote your full time, attention and best efforts to the performance of your duties under the Franchise Agreement, including a minimum of 40 hours per week of your physical presence at the Center during open and operating hours.
You can designate a supervisorial or managerial person to assume responsibility for the day-to-day management of the operation of the Center in your absence or if you do not meet the English proficiency requirement, if we choose to implement this requirement. All supervisorial and managerial personnel operating your Center must have satisfactorily completed our training program. If you are not the manager or if you do not participate in the daily operation of the Center, you must still make sure that the Center is operated according to the Franchise Agreement and the Trade Practices.
All personnel employed at the Flowerama Center must maintain the standards of sanitation, cleanliness and demeanor as we establish.
The term "Franchisee" as used in the Franchise Agreement refers to each person that signs the Franchise Agreement as Franchisee, and to each person that is one of the spouses, partners, shareholders, trustees, or beneficiaries of any person that signs the Franchise Agreement as Franchisee, and applies equally to each such person as if he, she, or it was the only named Franchisee in the Franchise Agreement. Your obligations and the obligations of each spouse, partner, shareholder, trustee, and beneficiary of any person that signs the Franchise Agreement as Franchisee, are joint and several. We require each of these persons to sign our form of Personal Guaranty, which is attached as Exhibit B to the Franchise Agreement.
We do not require that any on-premises supervisor have an equity interest in your business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 59)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, even if a franchisee designates a manager for the day-to-day operations of the Flowerama Center, they are still responsible for ensuring the Center operates according to the Franchise Agreement and the Trade Practices. This means the franchisee retains ultimate accountability for the Center's compliance with Flowerama's standards, regardless of who is physically managing the location.
This obligation underscores the importance of selecting a qualified and well-trained manager. Flowerama requires that all supervisorial and managerial personnel complete their training program. Therefore, franchisees need to ensure their designated managers are adequately prepared to uphold Flowerama's operational standards.
Furthermore, the franchisee's responsibility extends to maintaining standards of sanitation, cleanliness, and demeanor for all personnel employed at the Flowerama Center. This highlights that even in an absentee owner situation, the franchisee must implement systems and oversight to ensure all employees adhere to Flowerama's requirements. The franchisee's obligations are joint and several with their spouses, partners, shareholders, trustees, and beneficiaries, all of whom must sign a Personal Guaranty, reinforcing the comprehensive nature of the franchisee's accountability.