FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S0568 since 2017

EDIBLE ARRANGEMENTS

Other · independent · est. —

Edible Arrangements sells sculpted fresh-fruit bouquets, chocolate-dipped fruit, and gift boxes for occasions and everyday treats. A franchisee operates a retail store with a production area, filling walk-in, online, and delivery orders for gift-givers.

EDIBLE ARRANGEMENTS net unit count declined -24.4% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Showing strain

Distress

0
STABLE

The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.

Exit rate · latest year

13.0%

fiscal 2025, per Item 20

Cost to open

$214K–$587K

Item 7 total investment range

SBA loan defaults

14.7%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Fair
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

-24.4%
792202368420245992025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 88 of 679 franchised outlets left the system — a 13.0% annualized exit rate. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start868792684
Opened323
Transfers603737
Terminations499057
Non-renewals122231
Reacquired by franchisor226
Ceased — other reasons1000
Outlets at end792684599
Net change-76-108-85

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 493 SBA-backed loans to EDIBLE ARRANGEMENTS franchisees since 2003. Of the 367 that have resolved, 14.7% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

14.7%

54 of 367 resolved defaulted

Loss given default

61.6%

avg. charged-off $ ÷ approved $

Expected loss

9.1%

default rate × loss severity

Avg. loan · FY2020+

$395,073

what recent franchisees borrowed

Median time to default

70 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

34 vs 47

distinct banks still lending

Charge-off rate by loan approval year (%)

0'0408242913006'12610262524814'19

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO EDIBLE ARRANGEMENTS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Manageable debt load

A typical EDIBLE ARRANGEMENTS buyer since 2020 borrowed $395K through SBA — about $58K a year in debt service. Against the brand's own disclosed median unit revenue of $497K, that is 11.6% of every dollar the store takes in — before rent, payroll, food, or royalty.

Who finances it

Wells Fargo Bank National Association

9.4% of this brand's loans

That lender charges off 15.4% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

65.1%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

+0.9pp

multi-unit vs single-unit owners

Owners of multiple units default at 15.2%; single-unit owners at 14.3%.

Computed from 493 SBA 7(a)/504 loans to EDIBLE ARRANGEMENTS franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $30K franchise fee (Item 5) and a total investment of $214K–$587K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$214K–$587K

all-in investment range

Franchise fee (Item 5)

$30K

upfront, one-time

Royalty (Item 6)

5%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$50K

5% of sales, before profit

Over a 10-yr term

$500K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for EDIBLE ARRANGEMENTS with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 47 wage cases against operators of this system, recovering $52K in back wages for 221 workers, including 3 child-labor cases. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

47

Back wages owed

$52K

Employees affected

221

Since 2020

7

3 of these cases involved child-labor violations, covering 4 minors across the system's franchised locations.

Read this carefully. The employers in these cases are individual EDIBLE ARRANGEMENTS franchisees — separately owned businesses operating under the brand name — not EDIBLE ARRANGEMENTS itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2023.

Modeled risk

FDD Risk Score · modeled from the public record

Elevated

Modeled from the public record, this brand sits mid-pack: riskier than 59% of systems we score.

Risk percentile

59 / 100

Measured

Modeled SBA charge-off

14.0%

Observed SBA charge-off

14.7%

Top drivers: System size (log units) (lowers) · Single-lender dependence (raises) · Net unit growth (raises) · Item 20 exit rate (raises). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for EDIBLE ARRANGEMENTS. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing EDIBLE ARRANGEMENTS's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

EDIBLE ARRANGEMENTS franchise questions, answered from the filings

What percentage of EDIBLE ARRANGEMENTS franchises closed last year?

In EDIBLE ARRANGEMENTS's latest FDD Item 20 (fiscal 2025), 88 of 679 franchised outlets left the system — an annualized exit rate of 13.0%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a EDIBLE ARRANGEMENTS franchise cost?

Per EDIBLE ARRANGEMENTS's 2026 FDD, buying in requires an initial franchise fee of $30K (Item 5) and a total initial investment of $214K–$587K (Item 7).

What royalty does EDIBLE ARRANGEMENTS charge?

EDIBLE ARRANGEMENTS charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.

Does EDIBLE ARRANGEMENTS disclose earnings (Item 19)?

Yes — EDIBLE ARRANGEMENTS makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $497K. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for EDIBLE ARRANGEMENTS franchises default?

Across 493 SBA-backed loans to EDIBLE ARRANGEMENTS franchisees since 2003, 54 of the 367 that have resolved were charged off — a 14.7% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is EDIBLE ARRANGEMENTS a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk