FDD Items 3 & 4 · 2025 filing
Flowerama litigation history
What Flowerama disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- $275K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
1) State of Maryland Determination (2014) - affiliate 1-800-Flowers violated Maryland Franchise Registration and Disclosure Law; consent order, $5,000 civil penalty. 2) Arizona Family Florists, LLC et al. v. 1-800-Flowers.Com, Inc. et al. (E.D.N.Y., filed 2016) - breach of contract, fraud, and related claims by franchisee plaintiffs; Arizona Plaintiffs settled for $150,000 (Jan 2022); Ft. Lauderdale Plaintiffs settled for $275,000 (Mar 2022); no admission of liability in either settlement.
Disclosure signals that moved the score
How this shows up in the verdict
- Two 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
- Going concern status despite shrinking unit base raises questions about franchisor sustainability and long-term support viability
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?