Edible Arrangements
Encyclopedia
Edible Arrangements is a U.S.
-based franchising
business that specializes in fresh fruit
arrangements, melding the concept of fruit baskets with design inspired by the floral business.
, who partnered with his brother Kamran Farid to open the first Edible Arrangements store in Hamden, Connecticut
in 1999. After designing the computer systems, training manuals, production and profitability tracking and supply chain management process, they began franchising
the concept in 2001. The first official franchise location opened in Waltham, Massachusetts.
As of 2008, the business had grown to more than 900 stores serving locations in the United States, Canada
, Puerto Rico
, the United Arab Emirates
, Saudi Arabia
and the United Kingdom
. In March 2008 Edible Arrangements was reported to have annual revenues of $195 million.
In 2009, Edible Arrangements announced the signing of master franchisee agreements in Rome, Italy, and Hong Kong
. The Rome master franchise was purchased by VPF International Ltd, and the franchise for Hong Kong was purchaes by D.T. Hong Kong Ltd, which is owned by Sanja Dujic. Additionally, in November 2009, an agreement was signed with brothers Kemal and Emre Aydin, who planned to develop 15 locations in Turkey
. Edible Arrangements ended 2009 with 74 new stores and franchise agreements for more than 85 locations in the U.S. and internationally, totaling the number of units to 940. The company’s U.S. growth in 2009 was concentrated in Texas
and the Midwest
with stores also opening in other locations including California, Massachusetts, Pennsylvania, and Virginia. A total of 39 U.S. locations closed during the three-year period 2007–2009.
In 2010 the company opened 84 new U.S. stores and nine international stores and signed commitments for 123 new locations. Hiten Bajaj planned to open 20 new stores in India, with the Mumbai
store serving as a model for the others. Richmond, Virginia
, businessman Raed Al-Mustafa planned to open six stores in Jordan. In January 2011, Edible Arrangements announced its 1,000th franchise agreement.
required to start a new U.S. franchise is $223,057, franchisees are offered 104 hours of training, and royalties
to the company average five percent of gross sales.
to represent them in possible litigation. On September 20, 2010 the group filed a lawsuit
in federal court on behalf of 170 franchisees, alleging that several changes the company made in its franchise agreements were unfair or violated contractual obligations to the franchisees. Edible Arrangements International, responded to inquiries about the lawsuit by saying that they strongly disagreed with the accusations and would vigorously defend the complaint. The company subsequently initiated a motion in the courts to dismiss the case, but this attempt was denied by a District of Connectcut judge on July 19, 2011 and the franchisees were granted authority to pursue the case on all claims.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-based franchising
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
business that specializes in fresh fruit
Fruit
In broad terms, a fruit is a structure of a plant that contains its seeds.The term has different meanings dependent on context. In non-technical usage, such as food preparation, fruit normally means the fleshy seed-associated structures of certain plants that are sweet and edible in the raw state,...
arrangements, melding the concept of fruit baskets with design inspired by the floral business.
History
The company is headed by Tariq FaridTariq Farid
Tariq Farid is an entrepreneur who is the owner and CEO of Edible Arrangements International Inc.In 2009 he was recognized as Entrepreneur of the Year by the International Franchise Association.- Biography :...
, who partnered with his brother Kamran Farid to open the first Edible Arrangements store in Hamden, Connecticut
Hamden, Connecticut
Hamden is a town in New Haven County, Connecticut, United States. The town's nickname is "The Land of the Sleeping Giant." Hamden is home to Quinnipiac University. The population was 58,180 according to the Census Bureau's 2005 estimates...
in 1999. After designing the computer systems, training manuals, production and profitability tracking and supply chain management process, they began franchising
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
the concept in 2001. The first official franchise location opened in Waltham, Massachusetts.
As of 2008, the business had grown to more than 900 stores serving locations in the United States, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
, the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. In March 2008 Edible Arrangements was reported to have annual revenues of $195 million.
In 2009, Edible Arrangements announced the signing of master franchisee agreements in Rome, Italy, and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. The Rome master franchise was purchased by VPF International Ltd, and the franchise for Hong Kong was purchaes by D.T. Hong Kong Ltd, which is owned by Sanja Dujic. Additionally, in November 2009, an agreement was signed with brothers Kemal and Emre Aydin, who planned to develop 15 locations in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
. Edible Arrangements ended 2009 with 74 new stores and franchise agreements for more than 85 locations in the U.S. and internationally, totaling the number of units to 940. The company’s U.S. growth in 2009 was concentrated in Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
and the Midwest
Midwestern United States
The Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....
with stores also opening in other locations including California, Massachusetts, Pennsylvania, and Virginia. A total of 39 U.S. locations closed during the three-year period 2007–2009.
In 2010 the company opened 84 new U.S. stores and nine international stores and signed commitments for 123 new locations. Hiten Bajaj planned to open 20 new stores in India, with the Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
store serving as a model for the others. Richmond, Virginia
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
, businessman Raed Al-Mustafa planned to open six stores in Jordan. In January 2011, Edible Arrangements announced its 1,000th franchise agreement.
Franchising requirements
In January 2011, a Forbes magazine article entitled "Top 20 Franchises to Start" ranked Edible Arrangements as number nine. The article stated that the average investmentInvestment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
required to start a new U.S. franchise is $223,057, franchisees are offered 104 hours of training, and royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
to the company average five percent of gross sales.
Franchisee lawsuit
In 2010, Edible Arrangements faced dissatisfaction from some of its franchisees. In January 2010, more than 270 franchisees presented Farid with individual letters expressing opposition to corporate policies and practices that they considered to be harmful to their individual franchised businesses. The franchisees formed an association known as "EA Independent Franchisees Association, LLC", or "EAIFA" and hired an attorneyAttorney at law
An attorney at law in the United States is a practitioner in a court of law who is legally qualified to prosecute and defend actions in such court on the retainer of clients. Alternative terms include counselor and lawyer...
to represent them in possible litigation. On September 20, 2010 the group filed a lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
in federal court on behalf of 170 franchisees, alleging that several changes the company made in its franchise agreements were unfair or violated contractual obligations to the franchisees. Edible Arrangements International, responded to inquiries about the lawsuit by saying that they strongly disagreed with the accusations and would vigorously defend the complaint. The company subsequently initiated a motion in the courts to dismiss the case, but this attempt was denied by a District of Connectcut judge on July 19, 2011 and the franchisees were granted authority to pursue the case on all claims.
External links
- Edible Arrangements
- Tariq Farid
- The Boss: Bouquets That Bear Fruit, by Tariq Farid, as told to Patricia R. Olsen. The New York Times, November 8, 2009, page BU9 of the New York edition.