Does any party have an administrative, criminal or civil action pending against them alleging a felony related to the Flowerama franchise?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
- The following is added at the end of Item 3 of the Franchise Disclosure Document:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–77)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, Item 3 includes an addition stating that no party associated with the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under Flowerama's trademark, has any pending administrative, criminal, or civil action alleging a felony. This statement also confirms that there are no pending actions related to violations of franchise, antitrust, or securities laws, fraud, embezzlement, fraudulent conversion, misappropriation of property, or unfair or deceptive practices.
This disclosure provides assurance to potential Flowerama franchisees that the key figures and the company itself are not currently facing legal challenges related to serious misconduct or franchise-related issues. It indicates a level of stability and integrity within the Flowerama organization, which can be a significant factor for individuals considering investing in a franchise.
It is important to note that this statement only reflects the current status of pending actions. The document also states that there have been no felony convictions or pleas of nolo contendere to a felony charge within the past 10 years, nor any civil actions alleging similar violations. This broader scope offers further comfort to prospective franchisees, suggesting a clean legal history for Flowerama and its associated parties.