To whom are the opening supply inventory payments made for a Flowerama franchise?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type Of | Amount4 | Method Of | When Due | To Whom Payment |
|---|---|---|---|---|
| Expenditure | Payment | Is To Be Made | ||
| Leasehold | $40,000 - $325,000 | As incurred | Before opening | To supplier |
| Improvements3 | ||||
| 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 - $40,000 | As arranged | Before opening | To supplier |
| Opening | $25,000 - $75,000 | Lump sum | As incurred | To supplier |
| Merchandise | ||||
| Inventory | ||||
| Opening Supply | $6,000 - $8,000 | Lump sum | Before opening | BloomNet and/or |
| Inventory4 | Napco, and Suppliers | |||
| Lease Charges – 3 Months Pre-Paid Rent & SecurityDeposit5 | $10,000 - $24,000 | As incurred | As required by lease | Landlord |
| Miscellaneous | $5,000 - $10,000 | As incurred | Before opening | Vendors, |
| Opening Costs6 | Suppliers | |||
| Insurance9 | $9,000 - $15,000 | As arranged | Before Opening | Insurance Companies |
| Additional Funds - 3 months7, 10 | $36,000 - $150,000 | As incurred | As incurred | Employees, Vendors, Utilities, etc. |
| Vehicle | $5,000 - $35,000 | As arranged | Upon purchase | Vehicle dealer |
| TOTAL10 | $227,000 - $855,000 |
Your Estimated Initial Investment Start-Up Co-Brand Franchise Real Estate Purchased4 Type Of To Whom Payment Method Of Expenditure Amount4 Payment When Due 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 Restaurants Training2
Your Estimated Initial Investment Start-Up Co-Brand Franchise Real Estate Purchased4 Type Of Expenditure Amount4 Method Of Payment When Due To Whom Payment Is To Be Made Leasehold Improvements3 N/A 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 Inventory $25,000 - $75,000 Lump sum As incurred To supplier Opening Supply Inventory4 $6,000 - $8,000 Lump sum Before opening BloomNet and/or Napco, and Suppliers Miscellaneous Opening Costs6 $5,000 - $10,000 As incurred Before opening Vendors, Suppliers Insurance9 $9,000 - $13,000 As arranged Before Open
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–29)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, the recipients of opening supply inventory payments depend on the type of franchise. For a start-up co-brand franchise with real estate purchased, the opening supply inventory payments, which range from $6,000 to $8,000, are made to BloomNet, Napco, and other suppliers.
For an existing Flowerama Center converting to a co-brand franchise, the opening inventory payments, estimated between $2,500 and $5,000, are directed to BloomNet, Napco, and other suppliers.
For a standard Flowerama Center with leased real estate, the table provided does not list 'Opening Supply Inventory'. However, it does list 'Opening Merchandise Inventory' with payments made to the supplier. The initial opening inventory payable to BloomNet, and/or Napco will be between $1,150 and $3,000. This amount is different from the opening merchandise inventory, which ranges from $25,000 to $75,000 and is paid to a supplier. Therefore, it is important to clarify with Flowerama the distinction between 'Opening Supply Inventory' and 'Opening Merchandise Inventory' and to whom payments are specifically directed.