FranchiseVerdict
1-800-Flowers|Conroy’s logo
B64/100FDD 2025

1-800-Flowers|Conroy’s — Litigation & Risk

Retail · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
19
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 8.3% YoY (22 units), indicating a shrinking franchise system with potential model viability concerns
  2. 02MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or typical unit economics
  3. 03HIGHMultiple litigation cases including Maryland disclosure law violations and settled breach of contract/fraud lawsuit by franchisees
  4. 04MINORUnprotected territory creates direct competition risk, especially critical for retail-dependent flower business
  5. 05MEDHigh investment range ($258.5K–$932.5K) combined with no disclosed average revenue/net income creates severe uncertainty on payback period
  6. 06HIGHGoing concern status is FALSE — potential financial instability at franchisor level affecting support and viability
  7. 07MINORSeasonal revenue volatility in floral industry not addressed; no clarity on off-season cash flow management

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.