FranchiseVerdict
FauxReal Flowers logo
FV-00922·MODERATEExcellent81

FauxReal Flowers

OtherFranchising since 2022Website
Investment
$79K – $135K
24th pct Other
Avg revenue
50th pct Other
Royalty
6.0%
17th pct Other
Units
5
28th pct Other
SBA default

Bottom line

  • Total investment $79K – $135K including a $35K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 60/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
FauxReal Enterprises, Inc.
Incorporated in
North Carolina
HQ
723 W. Johnson Ste B2, Raleigh, NC 27603
Auditor
Velez Hardy
Audited financials
Franchisor revenue
$57K
vs $86K prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one FauxReal Flowers unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $79K–$135K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

98%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$122K
Payback
12 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

FauxReal Flowers franchisees operate retail or event-based artificial flower retail businesses, likely including product curation, floral design/arrangement services, and customer sales. Day-to-day activities typically involve inventory management, customer consultations, order fulfillment, and potentially delivery/installation services for corporate or event clients.

CEO
Amber Holmes
Founded
2022
FDD year
2025
States available
3

Item 7 · what it costs

The Vitals

Total investment
$79K – $135K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$35K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
5
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
80%
vs corporate-owned
Net growth (yr3)
+33.3%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2023
4+1
Franchised units
2024
3
Franchised units
2025
1
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 17 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

60
Risk · 0-100
MODERATE60 / 100

Early-stage flower franchise with critical financial transparency gaps, minimal unit base, and unproven unit economics that demand extensive franchisee validation before investment.

Score breakdown · what drove the 60 / 100 rating

  1. 01MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims
  2. 02MINOROnly 5 units systemwide with 33.3% YoY growth is minimal scale; vulnerable to single-unit failure impact
  3. 03MINORHigh initial investment ($78.5k–$135.5k) relative to tiny unit count raises sustainability questions
  4. 04MED6% royalty on undisclosed revenue base means true cost structure is opaque
  5. 05HIGHNo litigation disclosure could indicate newness, obscurity, or selective reporting

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population and Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
27 hrs
On-the-job training
19 hrs
POS system
Honeybooks
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

17 numbers

Locked
(813) 595-••••
Paulette R Pea
FL
(919) 801-••••
Addie and Michael Thompson
NC
(404) 451-••••
Jennifer Mayfield
GA

One-time purchase · CSV download · Validation questions included

FDD download

FauxReal Flowers · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above