Franchise Deep Dive: Edible Arrangements Franchise Costs, Fees, Profit and Data

Sure, it's nice for special occasions, but does this business model have what it takes to offer more than just a kitschy food gift?

By Luca Piacentini1851 Franchise Managing Editor

10:10AM • 07/23/23

LAST UPDATED: July 2, 2023

FRANCHISE WEBSITE: https://ediblefranchise.com/

NUMBER OF LOCATIONS: 931

REPORTED COST TO GET IN: $183,600 - $409,700

REPORTED ROI (Item 19): $666,777 (AUV for stores open 3+ years)

Edible Arrangements is a gift retail franchise that offers sweet treats, smoothies, chocolate-covered fruit, fruit salad and bouquets of fresh fruit. With a 24-hour e-commerce platform and an inclusive business model, the company is widely recognized as one of the most popular concepts in the gift and dessert category, competing against others like Flowerama, Kilwins and Rocky Mountain Chocolate Factory.

How Many Edible Arrangements Are There?

Edible Arrangements was originally founded in 1999 by Tariq Farid. Originally from Pakistan, Farid moved to West Haven, Connecticut, after acquiring U.S. citizenship. Eager to carve a niche for himself in the business world, his initial exposure to the industry came from his teenage stint at a local McDonald's where he learned about franchising. However, Farid's entrepreneurial spirit was eager to blaze its own trail.

At the tender age of 17, Farid took his first leap into entrepreneurship with the support of a $5,000 loan from his parents and family friends. He invested in a neighborhood flower shop and, to no one's surprise, he turned out to be a natural entrepreneur. Within a span of two years, Farid's success burgeoned, leading him to manage four flourishing stores.

However, the defining moment of his career was yet to come. In 1999, he recognized an untapped market opportunity that combined Americans' rising preference for fresh fruits, an increasing demand in the specialty food market, and a society that was ready to splurge on gifts. This insight led Farid to conceive a unique business idea: Edible Arrangements.

With a promising concept at hand, Farid expanded his business venture through franchising. In 2001, the first Edible Arrangements franchise store opened its doors in Waltham, Massachusetts.

“I’ve found that it has always been more beneficial to focus on the end results and what you’re trying to achieve,” Farid told 1851 Franchise in 2017. “If the goal of the business is the same at every level, then perception is a great benchmark to look at afterwards and see how you did. I like to take a step back and make sure we’re hitting goals and focusing on our customers and franchisees before thinking about how we’re being perceived.”

In 2009, Edible Arrangements signed its first international master franchise agreements in Italy and Hong Kong. Over the next decade, Edible Arrangements continued to expand in the U.S. and internationally. By 2011, the company had signed its 1,000th franchise agreement.

But it hasn’t been all positive — the franchisor has had several lawsuits filed against it by franchise owners, as well as one filed by the franchisor against a franchisee. Today, following several years of more closures than openings, there are currently 931 Edible shops across North America.

What Is an Edible Arrangements Business Model?

The Edible Arrangements franchisees are usually responsible for taking orders, overseeing gift basket and tray assembly, and maintaining a clean work environment. Owners can tap into four revenue streams:

Retail: Retail Edible shops provide the convenience of curbside and in-store pickup for guests. Guests can pick up freshly prepared arrangements, platters, cheesecakes, cookies and boxed fruit to go. Other than the busy holiday season, each shop only requires five employees to operate.
e-Commerce: Edible.com and the brand’s customer care center is open 24 hours a day and 365 days a year. Guests can place their orders anytime and have it fulfilled by their nearest Edible shop, aiding in local store marketing for the franchisee.
Delivery: Edible gifts can be ordered last-minute or in advance, and delivered all over the country. With a systemwide delivery network, Edible Arrangements has the ability to reach 75% of the ZIP codes around the country within an hour.
Catering: Whether it be for family get-togethers, client meetings or celebrations, Edible offers guests the ability to cater with party platters, snack bundles and gift sets.

How Much Can Edible Arrangements Franchise Owners Make?

Edible Arrangements’ most recent Franchise Disclosure Document (FDD) and Item 19 outlines the historical financial performance representation and average and median gross sales of all franchised locations in the United States that were open and operating for one year or longer as of December 31, 2021:

How Much Does It Cost to Open an Edible Arrangements?

The total investment necessary to begin operation of an Edible Arrangements Franchise ranges from $183,600 to $409,700. This includes between $67,800 and $98,800 that must be paid to the franchisor or affiliate.

What Is the Franchise Fee for Edible Arrangements?

The initial franchise fee is $30,000.

Who’s On Edible Arrangements’ Leadership Team?

What Helpful Articles Can I Read to Learn More About Edible Arrangements?

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