What is the purpose of the 1-800-Flowers Marketing Fund for Flowerama?

According to Flowerama's 2024 Franchise Disclosure Document, the 1-800-Flowers Marketing Fund is intended to maximize national and regional general public recognition and acceptance of the 1-800-Flowers marks. This is designed to benefit all businesses offering 1-800-Flowers products and services, including Flowerama franchises. The fund is maintained and administered by Flowerama or its designee, who directs all national and regional marketing programs, including decisions about creative concepts, materials, media, and placement.

Flowerama franchisees contribute two percent (2%) of their franchised unit's gross sales to the 1-800-Flowers Marketing Fund, payable on the tenth of each month based on the previous month's gross sales. The funds may cover various costs related to national and regional marketing programs. These include television, radio, outdoor, direct mail, magazine, and newspaper advertising campaigns, as well as Yellow Pages advertising and public relations activities. The fund also supports the development and production of collateral materials, the employment of advertising agencies and public relations firms, and the promotion of toll-free telephone numbers and online services.

While the fund aims to benefit all businesses under the 1-800-Flowers umbrella, Flowerama is not obligated to make expenditures that directly benefit an individual franchisee or their specific franchised unit. However, for company-owned retail units operating under the 1-800-Flowers name in markets or regions with five or more franchised units, Flowerama must contribute to the marketing fund in an amount equal to what is required of comparable units within the system. This ensures that company-owned units also contribute to the marketing efforts that support the brand.

National and regional marketing programs may feature special items with suggested sales prices, or indicate that advertised special prices are available only at participating retail units. Flowerama retains the right to influence the pricing of products and services to enhance the brand's competitive position and consumer acceptance. This may include prescribing maximum or minimum retail prices, recommending retail prices, advertising specific retail prices, and mandating participation in marketing and promotional campaigns, which could directly or indirectly impact a franchisee's retail prices.