Edible Arrangements franchise owners filed a lawsuit last week, alleging that, over the past few years, the Edible Arrangements franchisor has systematically made changes that are extremely detrimental to their franchise businesses.
The company vehemently denies the allegations, and vows to “defend the complaint vigorously.”
In response to reports of the lawsuit, which was filed by the EA Independent Franchise Association representing 170 Edible Arrangement franchises across the United States, Edible Arrangements issued the following statement:
Statement Regarding EAIFA Lawsuit
Edible Arrangements International, Inc. has received a copy of the EAIFA lawsuit
filed last week and strongly disagrees with the EAIFA’s characterization of the
facts and conclusions. The Company plans to defend the complaint vigorously
and is very confident its strategies to build and evolve the Edible Arrangements’
system are expressly allowed and have been undertaken in good faith.
Since its inception, the Company’s main objective has been and always will be
to continuously improve the business opportunity for our franchisees and the
Some of the changes that Edible arrangements franchise owners object to include:
- Requiring individual franchises to use approved produce vendors, even if a franchisee has a long-standing arrangement with a local vendor.
- Making all franchisees have Sunday hours.
- Requiring franchisees to buy new computer and software system directly from Edible Arrangements rather than another vendor offering a lower price.
- Requiring franchisees to share their customer lists with Edible Arrangements.
- Reducing the franchisee’s revenue share of online orders from 100% to just 20%.
Franchisees also allege that the Edible Arrangements franchisor is engaging in “virtual encroachment,” and unfairly competing with them via an ecommerce site at DippedFruit.Com.
EA Independent Franchise Association is represented by Justin M. Klein, a franchise attorney at the Red Bank, NJ law firm of Marks & Klein, LLP
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