FloweramaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Flowerama franchise requires a total initial investment of $227K – $1.2M, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 24.7% charge-off rate across 91 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $227K – $1.2M
- 24th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- 6.0%
- 17th pct Retail
- Units
- 40
- 17th pct Retail
- SBA default
- 24.7%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
24.7% of SBA loans charged off across 91 loans, above the 16% franchise average.
Franchising since 1972. Systems this mature have refined operations and brand recognition.
Franchised units fell from 36 to 32 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $227K – $1.2M including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 24.7% across 91 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which 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
- Flowerama of America, Inc.
- Parent company
- 1-800-Flowers.com, Inc.
- Incorporated in
- IA
- HQ
- 5108 Nordic Drive, Cedar Falls, IA 50613
- Auditor
- Hogan - Hansen
- Audited financials
- Franchisor revenue
- $6.6M
- vs $6.5M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
Flowerama franchisees operate retail flower shops selling cut flowers, arrangements, plants, and related gifts. Day-to-day operations involve managing inventory, creating custom floral designs, processing orders (in-store and online), managing staff, and handling local marketing and customer relationships.
- CEO
- James F. McCann
- Headquarters
- IA
- Founded
- 1966
- FDD year
- 2024
- States available
- 18
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $36K | $150K |
| Equipment, build-out, other | $156K | $984K |
| Total initial investment | $227K | $1.2M |
Source: Flowerama 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $227K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $36K – $150K
- Better than avg vs category
- Franchise fee
- $18K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How Flowerama Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 0
- Last reporting year
- Closed
- 4
- Turnover rate
- 10.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (yr3)
- -11.1%
- Net unit change last year
- 3-yr CAGR
- -8.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 91
- Loan volume
- $24.3M
- Median loan
- $215K
- 50th percentile
- Charge-off rate
- 24.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 75.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 20
- Defaults
- 21
Vintage analysis
Flowerama charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Flowerama's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 18-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 24.7% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Flowerama presents elevated risk due to contracting unit growth, unresolved litigation history, absence of financial performance disclosure, and going concern status—characteristics typical of struggling franchise systems.
Audited financials (Item 21)
Yes · Hogan - Hansen⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MEDUnit count declined 11.1% year-over-year (40 units) indicating system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHTwo major litigation events including Maryland regulatory action for disclosure violations and settled multi-plaintiff breach of contract/fraud lawsuit suggesting governance issues and franchisee relations problems
- 03MEDNo average revenue or net income disclosed in FDD Item 19, making it impossible to validate ROI claims or benchmark profitability against the $227k-$1.17M investment range
- 04MED6% royalty on gross sales combined with undisclosed net income creates uncertainty about actual take-home profit and break-even timeline
- 05HIGHGoing concern status despite shrinking unit base raises questions about franchisor sustainability and long-term support viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 126 hrs
- On-the-job training
- 34 hrs
- POS system
- BloomNet Business Management System (BloomNet BMS) and Visual Ticket POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BloomNet Business Management System (BloomNet BMS) and Visual Ticket POS System
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Flowerama · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Flowerama franchise?
The total investment to open a Flowerama franchise ranges from $227K – $1.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Flowerama franchise owners earn?
Flowerama does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Flowerama's franchise failure rate?
Based on SBA 7(a) loan data, Flowerama has a charge-off rate of 24.7% across 91 loans, meaning 24.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Flowerama franchise locations are there?
As of their most recent FDD filing, Flowerama has 40 total units in the United States, including 36 franchised units and 8 company-owned units.
Is Flowerama a good franchise to buy?
FranchiseVerdict rates Flowerama as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.