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.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 104 loans (below the industry average).
- 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
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 Flowerama unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
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
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 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.
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.
Score breakdown · what drove the 57 / 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
Item 11
Training & Operations
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
35 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Flowerama · FDD (2024) PDF