Franchising FAQ
What is franchising?
Franchising is really about being in business for yourself but not by yourself.
Generally, franchising is where the franchisor licences the franchise owner the right to distribute and market a product or service, and use the business name and/ or trademarks for a fixed period, in return for a fee.
Under the Flowers by Fruit franchise system, the franchise owner has the opportunity to conduct a business using the Flowers by Fruit name, system and products.
What is a franchise?
According to the Franchising Code of Conduct, a business is deemed to be a franchise where:
- There is a written, oral or implied agreement;
- One party (the franchise owner) is granted the right to carry on a business of offering, supplying or distributing goods or services under a system or marketing plan, which is substantially determined, controlled or suggested by the other party (the franchisor);
- The operation of the business will be substantially or materially associated with the franchisor’s trademark, advertising or commercial symbol; and
- Before starting or continuing the business, the franchise owner must pay or agree to pay the franchisor an amount, whether an initial fee, ongoing royalty or other payment.
Why should I choose a franchise instead of starting my own business?
Starting a new business can be very risky. By purchasing a franchise, you can reduce the risk to some extent as you are buying a business with an established, successful business system and brand. In addition, you receive comprehensive initial training and ongoing support, advice and training from us.
Why should I consider becoming a pilot franchise
As a pilot franchise you will be among the first to join a fun and growing business. As a pilot you will save 50% off the initial franchise fee and be integral part in helping improve the systems for the betterment of the business and its customers. A pilot franchise is a limited opportunity for either franchise model.
What type of Flowers by Fruit Franchise would suit me and what qualifications do I need?
Flowers by Fruit is offering two types of business opportunities;
- The Flowers by Fruit Creation Centre: If you have a love of being creative, working with your hands and in charge of your own destiny then a Flowers by Fruit Creation Centre is for you. Your responsibilities will be to service an allocated territory by making and delivering the Flowers By Fruit products in your very own Flowers by Fruit Van. Leading a team of dedicated marketing franchisees in your area, allows you to concentrate on growing your business to meet its full potential.
- A Flowers by Fruit Egg Franchisee: If you love meeting people, promoting and selling products you believe in your own exclusive Flowers by Fruit territory, want flexible hours, and have an out of the office job, then you are perfect as an Edible Gift Guru (EGG). The option to work from home or an office is entirely up to you. You can make this a Part Time of Full time business.
You do not need any formal qualifications to run any of the Flowers by Fruit Franchise opportunities. Your enthusiasm, passion and energy to run a successful business is paramount.
Why should I become an Flowers by Fruit franchise owner?
Flowers by Fruit has been successfully operating for over four years and continues to grow at a healthy rate. The company management is highly experienced and recognised for excellent customer service and as a result the company is recognised as the industry leader. We would now like to share our success and knowledge with others through our franchising program.
How do I go about becoming a Flowers by Fruit franchise owner?
You have already started the journey. The next thing you must do is complete an Application Form for the Franchising opportunity that suits you. This information will assist us in assessing your suitability as a Flowers by Fruit franchise owner. Should we decide that you meet our initial criteria, then, subject to you undertaking a Confidentiality Deed, we will provide you with a detailed outline of the steps to be completed in order for you to become a franchise owner.
How much will it cost?
The initial investment in your Flowers by Fruit franchise depends on the type of franchise that suit you. Costs are provided in our Disclosure Documentation.
Am I required to work in my franchise?
Yes. At Flowers by Fruit, we believe that the most successful franchises are those which are run by the actual owner. We also believe that the best head-start you can give your business is to commit yourself to it so as you can fully understand every aspect of the operation. It is important to Flowers by Fruit that you want to pursue an active involvement in the franchise and do not want to obtain the franchise purely as an investment opportunity.
I would like to own a franchise with my business partner. Is this acceptable?
If you do decide that a partnership best suits you, we encourage and strongly recommend that you discuss the responsibilities that you would both undertake as franchise partners.
What do I receive for my Initial Fees?
The Initial Franchise Fee is your payment for the grant by us of the right to use the valuable intellectual property, which includes the brand name, business system and the Flowers by Fruit business opportunity.
For the Flowers by Fruit Creation Centre Franchise Owner you will receive a comprehensive Initial Training Program on all aspects of your Flowers by Fruit business from creating and making products, customer service techniques including order processing, to business referral sources, to hands-on training in the management of the business day to day.
For the EGG Franchise Owner, you will receive a comprehensive Initial Marketing Training Program on all aspects of your Flowers by Fruit business from sales techniques, to business referral sources, time management, and general training in the management of the business day to day.
What is the Franchise Service Fee?
The Franchise Service Fee is based on a percentage of the gross turnover of the business so that I is fair and equitable for all franchise owners.
NOTE: As an EGG or Marketing franchisee you will not be required to pay an ongoing service fee.
For the Flowers by Fruit Creation Centre The purpose of the Franchise Service Fee is to remunerate the franchisor, for the on-going services we provide to you, such as;
- Use of our Branding and Operations Manuals
- Training and Ongoing advice & support;
- New concepts and new product development;
- Access to the Flowers by Fruit range of products and services;
- Franchise Performance Reviews aimed to assist you in making your business more effective and profitable;
- Management of the Group
What is the Marketing Contribution?
The purpose of the Marketing Contribution is to pool the contributions of all franchise owners both Creation Centre and EGGs (Marketing Franchisees) to maximise the promotion of the Flowers by Fruit products & services, thus building the brand for the benefit of all partners.
How is the Marketing Contribution determined?
The Marketing Contribution is based on a percentage of the gross turnover so that is fair and equitable for all franchise owners.
What happens at the end of the first franchise term?
If you prove to be a successful franchise owner, it is in our interest to have you renew your franchise for a further term. Full details of how this works is included in the Disclosure Document.
What Regions and Territories are available?
Creation Centre Regions and EGG Territories are something best discussed during the Franchise Recruitment process.When we are both comfortable to progress, you will be given the opportunity to lock in a particular region or territory providing it is still available.
Will I have an exclusive region/territory?
The Creation Centre Franchise Owner: Yes. Your area will be from an approved location with a number of Egg territories The EGG Franchise Owner: Yes, your area will be subject to the location of the creation centre that will have a number of marketing territories assigned to it.
When I open for business, will I be left on my own?
No. When you join Flowers by Fruit we will guide you until you are comfortable with the way you operate your business. As part of the Flowers by Fruit family, support is just a phone call away. .
Will I have an opportunity to contribute to the franchise network?
Yes. Our franchise system has been designed to provide all franchise owners with an opportunity to contribute. Will I be able to sell my business in the future? Yes, the franchise is yours to sell under certain conditions, to someone who meets our approval just as you did, and then continues on with the franchise. This is a very important issue which differentiates owning a franchised business from just holding down a job. The more profitable your business is the greater is its sale value. When you leave a job, the value you have created stays. As a franchise owner, it stays with you.
