When is the initial franchise fee for a Standard Flowerama Center payable?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
re determined by the type of franchise you purchase.
Initial Franchise Fee for Standard Flowerama Center
You must pay us an Initial Franchise Fee of $35,000 for the first Standard Flowerama Center. The Initial Franchise Fee for the second and any additional Standard Flowerama Centers is $17,500. All Initial Franchise Fees are payable in a lump sum when you sign the Franchise Agreement. The Initial Franchise Fee is not refundable, under any circumstances. If the term of your Franchise Agreement is less than 20 years, then the Initial Franchise Fee may be reduced accordingly.
If you are in good standing under your Franchise Agreement and you wish to purchase another Standard Flowerama Center franchise, we will reduce the Initial Franchise Fee to 50% of the then-current Initial Franchise Fee. The Initial Franchise Fee is payable in a lump sum when you sign the Franchise Agreement, and you must sign our then-current form of Franchise Agreement. No fees or other payments are adjusted for you in the purchase of an additional franchi
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, the initial franchise fee for a Standard Flowerama Center is payable in a lump sum when you sign the Franchise Agreement. The initial franchise fee for the first Standard Flowerama Center is $35,000. For the second and any additional Standard Flowerama Centers, the initial franchise fee is $17,500.
Notably, the FDD states that the initial franchise fee is not refundable under any circumstances. However, if the term of the Franchise Agreement is less than 20 years, the initial franchise fee may be reduced accordingly. Furthermore, if a franchisee in good standing wishes to purchase another Standard Flowerama Center franchise, Flowerama will reduce the initial franchise fee to 50% of the then-current initial franchise fee, provided the franchisee signs Flowerama's then-current form of Franchise Agreement.
It is important to note that in the fiscal year ended June 30, 2024, Flowerama did not collect any initial franchise fees. Flowerama retains the right to reduce, defer, or waive the initial franchise fee if it determines that doing so is warranted by a given situation. This indicates that the actual amount and timing of the initial franchise fee can be subject to negotiation or special circumstances, although this is at Flowerama's discretion.