What is the maximum amount Flowerama may finance for build-out and signage?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
anchise Agreement on or before October 1, 2025, we will waive payment of the entire Fruit Bouquets Initial Franchise Fee.
Franchisor Financing
If you meet our criteria, including a minimum credit score of 650, we may offer you the opportunity to finance up to $30,000, which may be used for build-out of your Center and/or purchase and installation of signage. In addition, if you choose to purchase the Fruit Bouquets Program, we may offer you the opportunity to finance up to an additional $30,000, which may be used for build-out costs and signage related to the Fruit Bouquets Business. We may also offer you the opportunity to finance up to an additional $30,000 of remodeling costs and/or signage costs, if you are granted a renewal term. We may also offer you the opportunity to finance up to an additional $30,000 of the Renewal Franchise Fee if you are granted a renewal term. Offers of financing are made to franchisees in our sole discretion on a case-by-case basis. If we offer financing to you, you must
sign our form of Promissory Note attached to this Disclosure Document as Exhibit G-1. If you are an entity, your owners must guarantee payment of the Promissory Note under a Guarantee attached to this Disclosure Document as Exhibit G-2, and you must also grant us a security interest in the assets of your Flowerama Center under our form of Security Agreement attached to this Disclosure Document as Exhibit G-3. Financing is generally repaid over 1 year with interest at the rate of 7% per annum. The length of time to repay and the interest rate may vary on a case by-case-basis. If we offer you financing for multiple purposes, you may have to sign multiple Promissory Notes, Guarantees and Security Agreements.
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, franchisees who meet the franchisor's criteria, including a minimum credit score of 650, may be eligible for financing up to $30,000. This financing can be used for the build-out of the Flowerama center and/or the purchase and installation of signage.
Additionally, if a franchisee chooses to purchase the Fruit Bouquets Program, Flowerama may offer financing up to an additional $30,000. This additional financing is specifically for build-out costs and signage related to the Fruit Bouquets Business. Flowerama may also offer up to an additional $30,000 of remodeling costs and/or signage costs, if a franchisee is granted a renewal term.
It's important to note that these financing options are not guaranteed. Offers of financing are made at Flowerama's sole discretion on a case-by-case basis. If financing is offered, the franchisee will be required to sign a Promissory Note, and if the franchisee is an entity, the owners must guarantee the payment. Flowerama will also require a security interest in the assets of the Flowerama Center. Financing is generally repaid over 1 year with interest at a rate of 7% per annum, but the repayment terms and interest rate may vary.
In summary, while the standard initial franchise fee for a Flowerama center is $35,000, Flowerama may finance up to $30,000 for build-out and signage, with the potential for additional financing for the Fruit Bouquets Program or remodeling/signage costs upon renewal. However, this financing is subject to meeting Flowerama's criteria and is offered at their discretion.