Edible Arrangements - Floral Gift Boxes

- 17.03

Edible Arrangements International, LLC is a U.S.-based franchising business that specializes in fresh fruit arrangements, melding the concept of fruit baskets with design inspired by the floral business. The company also sells a variety of specialty fruit gift items, such as gift boxes featuring premium chocolate dipped fruit, and fresh-fruit-to-go products.

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History

The company is headed by Tariq Farid, who partnered with his brother Kamran Farid to open the first Edible Arrangements store in East Haven, Connecticut in 1999. After designing the computer systems, training manuals, production and profitability tracking and supply chain management process, they began franchising the concept in 2001. The first official franchise location opened in Waltham, Massachusetts. However, the first store was in Hamden, Connecticut.

As of 2012, the business had grown to more than 1,100 stores serving locations in the United States, Canada, Puerto Rico, the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain, Italy, Turkey, Hong Kong, Oman, India and China. In March 2008 Edible Arrangements was reported to have annual revenues of $195 million.

In 2009, Edible Arrangements announced the signing of master franchisee agreements in Rome, Italy, and Hong Kong. The Rome master franchise was purchased by VPF International Ltd, and the franchise for Hong Kong was purchased by D.T. Hong Kong Ltd, which is owned by Sanja Dujic. Additionally, in November 2009, an agreement was signed with brothers Kemal and Emre Aydin, who planned to develop 15 locations in Turkey. Edible Arrangements ended 2009 with 74 new stores and franchise agreements for more than 85 locations in the U.S. and internationally, totaling the number of units to 940. The company's U.S. growth in 2009 was concentrated in Texas and the Midwest with stores also opening in other locations including California, Massachusetts, Pennsylvania, and Virginia. A total of 39 U.S. locations closed during the three-year period 2007-2009.

In 2010 the company opened 84 new U.S. stores and nine international stores and signed commitments for 123 new locations. There are many stores Connecticut including Glastonbury, Middletown, Hartford, etc. Hiten Bajaj planned to open 20 new stores in India, with the Mumbai store serving as a model for the others. Richmond, Virginia, businessman Raed Al-Mustafa planned to open six stores in Jordan. In January 2011, Edible Arrangements announced its 1,000th franchise agreement.

In 2012, Edible Arrangements expanded its corporate footprint with the purchase of a commercial building adjacent to its Wallingford, Connecticut headquarters, adding 23,057 additional square-feet of office space. The company plans to connect the two properties and create a suburban, campus-like environment.

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Rankings

Edible Arrangements was ranked number 40 on Entrepreneur magazine?? '?s 2013 Entrepreneur Franchise 500 and has appeared on the magazine's list of Top Global Franchises and Fastest-Growing Franchises for five consecutive years. It was also ranked first in category in the Franchise 500 in the years 2007, 2008, 2009, 2010, 2011, 2012, and 2013.

In January 2011, a Forbes magazine article entitled "Top 20 Franchises to Start" ranked Edible Arrangements as number nine. The company also was recently named one of the "Top 100 Internet Retailers" by Internet Retailer magazine.

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Franchisee lawsuit

The issue began in 2010 when Edible Arrangements faced dissatisfaction from some of its franchisees. In January 2010, more than 270 franchisees presented Farid with individual letters expressing opposition to corporate policies and practices that they considered to be harmful to their individual franchised businesses. The franchisees formed the EAIFA and hired an attorney to represent them in possible litigation. On September 20, 2010 the group filed a lawsuit in federal court on behalf of 170 franchisees, alleging that several changes the company made in its franchise agreements were unfair or violated contractual obligations to the franchisees. Edible Arrangements International, responded to inquiries about the lawsuit by saying that they strongly disagreed with the accusations and would vigorously defend the complaint. The company subsequently initiated a motion in the courts to dismiss the case, but this attempt was denied by a District of Connecticut judge on July 19, 2011 and the franchisees were granted authority to pursue the case on all claims. In 2013, after months of negotiations, Edible Arrangements and EAIFA settled the lawsuit out of court.

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Terrorism-support controversy

In July/August 2014, claims were made that Edible Arrangements and its founders donate funding to the HAMAS/Al-Qaeda/Muslim Brotherhood "charity". The donations in question include support for the Islamic Circle of North America (ICNA) and the Inner City Muslim Action Network.

In response, the Anti-Defamation League released a statement that the claims are false, stating "there is absolutely no truth to these unfounded assertions".

Ironically, the ADL has itself criticized at least one of the organizations that the Farid Foundation has supported, specifically accusing ICNA of supporting extremism through various means, including inviting people such as Anwar al-Awlaki to speak at its annual convention. Anwar al-Awlaki is believed to be a senior talent recruiter and motivator for al-Qaeda. He also had contact with three of the 9/11 hijackers, the Fort Hood shooter, and the Christmas Day bombing suspect Umar Farouk Abdulmutallab. Some news sources found the ADLs defense of the Farid Foundation's ICNA donation curious.

The ICNAs purpose, according to its Wikipedia page is to "To seek the pleasure of Allah through the struggle of Iqamat-ud-Deen [establishment of the Islamic system of life] as spelled out in the Qur'an and the Sunnah of [Muhammad]".

Farid Foundation 990 reports show donations of $20,000 in 2009 and of $30,000 in 2011 to ICNA Relief.

A past president of the local New York ICNA chapter, Ashrafuz Zaman Khan and Chowdhury Mueen-Uddin were tried in absentia and found guilty of war crimes that include kidnapping, torture and murder of nine Dhaka University teachers, six journalists and three doctors during the liberation war of Bangladesh in 1971.

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Sponsorship and awards

Edible Arrangements has established a charitable gift giving program with National Breast Cancer Research Foundation in national and local level as a part of Breast Cancer Awareness month each October. Stores located throughout the United States and Canada have established a relationship with the Breast Cancer Society of United States and Canada. In United States, during the month of September and October 2010, 10% of the purchase price from the Awareness Celebration, Breast Cancer Awareness Bouquet and Heels for Healing BouquetTM will be donated to National Breast Cancer Foundation, Inc.("NBCF"). NBCF uses these to save lives by increasing awareness of breast cancer through education and also provides funding for free mammograms for needy women.



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