For a U.S. 1-800-Flowers Co-Branded Franchised Unit, this is a limited-confidence, pre-tax scenario range before debt principal and personal income taxes. The 2025 Franchise Disclosure Document does not report franchisee sales, profit, EBITDA, cash flow, or owner compensation, so this is not an official franchisor earnings figure. A paid-manager model is negative in all three scenarios shown below.
This range is an independent analytical scenario, not an Item 19 financial performance representation by 1-800-Flowers.com Franchise Co., Inc. It combines identified 2025 FDD fee and operating facts with U.S. Census Bureau, IRS, and BLS benchmarks plus clearly labeled sensitivity assumptions. Actual results can differ materially because of location, format, sales mix, floral waste, labor, occupancy, delivery density, order-referral fees, financing, owner involvement, and execution.
- Legal franchisor
- 1-800-Flowers.com Franchise Co., Inc., a wholly owned subsidiary of 1-800-FLOWERS.COM, Inc.
- Current U.S. offer
- Standard Franchised Unit, Co-Branded Franchised Unit, and Fruit Bouquets Business add-on; the add-on is not a stand-alone outlet.
- Item 19 status
- No financial performance representation. The 2025 FDD, Item 19, page 72, discloses no past or future outlet performance.
- Population context
- Item 20 reports 37 franchised outlets at fiscal year-end June 29, 2025, including four design centers; Co-Brand and Standard units are mixed in that count.
- Benchmarks used
- 2022 SUSB employer-florist receipts, 2023 IRS sole-proprietor net income for Miscellaneous store retailers, and 2023 BLS florist-industry manager wages.
- Date checked
- July 16, 2026.
The estimate relies materially on official external benchmarks rather than same-brand sales or profit data, and the IRS profitability proxy is broader than the florist industry.
Rounded annual result for the central Co-Brand scenario.
2022 SUSB average, not a same-brand median or franchise AUV.
2023 IRS net income less deficit divided by receipts.
Year-five assumption at $1,250 per month for the modeled sales band.
2023 BLS annual mean wage; payroll burden is not included.
Down from 50 at the start of the fiscal year.
What does the 2025 Item 19 actually disclose?
It discloses no sales or earnings result. This is an official FDD fact for all offered formats and outlet populations. The 2025 FDD, Item 19, page 72, states that the franchisor does not make representations about future franchisee performance or the past performance of company-owned or franchised outlets.
That means no official average unit volume, median sales, operating profit, EBITDA, net income, cash flow, owner salary, or distribution is available to anchor a same-brand owner-income calculation. The brand’s official franchise FAQ likewise says approximate profit varies with location and demographics rather than publishing a fixed profit amount.
The $531,736 figure used below is a government benchmark for average receipts per employer florist establishment. It is not 1-800-Flowers sales, not a median, and not owner income. The FTC’s franchise buyer guide warns that gross-sales figures do not reveal costs or profit.
How was the $7,000 to $49,000 range modeled?
The range applies three explicit revenue-and-margin cases to a Co-Branded Franchised Unit. It is estimated, not official. The central revenue benchmark covers U.S. employer florist establishments in 2022; the margin proxy covers 2023 Miscellaneous store retailer sole proprietorships; and the recurring fee inputs come from the 2025 FDD.
Revenue benchmark: $6,380,298,000 of 2022 receipts ÷ 11,999 employer florist establishments = $531,736 per establishment. SUSB uses 2017 NAICS 453110, which maps to 2022 NAICS 459310 Florists.
Margin benchmark: $3,087,685,000 of 2023 net income less deficit ÷ $41,017,950,000 of receipts = 7.53% for the broader IRS Miscellaneous store retailers category.
| Scenario | Revenue | Margin proxy | Annual Co-Brand fee | Owner-operator benefit |
|---|---|---|---|---|
| Conservative | $425,000 | 4.53% | $12,000 | $7,000 |
| Base | $532,000 | 7.53% | $15,000 | $25,000 |
| Upside | $638,000 | 10.53% | $18,000 | $49,000 |
The revenue spread is an editorial 80% / 100% / 120% sensitivity around the Census average. The margin spread is the IRS benchmark minus 3 percentage points, unchanged, and plus 3 percentage points. Co-Brand fees use the FDD’s year-five monthly schedule for the corresponding annual-sales bands. Results are rounded to the nearest $1,000 after full-precision calculation.
What annual owner-operator benefit does each scenario produce?
Co-Branded Franchised Unit; pre-tax, before debt principal and personal taxes.
Interpretation: The central scenario produces about $25,000 of owner-operator benefit; higher sales alone are insufficient unless the operating margin also improves.
Source: 2022 Census SUSB tables; 2023 IRS nonfarm sole-proprietorship statistics; 2025 FDD, Item 6, pages 14–22.
What does “owner-operator benefit” include?
It combines residual business income and the value of work performed by the owner. It is estimated for one unit and should not be interpreted as passive profit. The IRS Schedule C proxy includes depreciation and whatever business-interest deductions appear in that broad population; this model does not normalize those items. Capital expenditures, financing principal, personal income taxes, and owner-specific distributions are not calculated.
How does owner involvement change the result?
Owner involvement is the dominant earnings variable in this model. The 2025 FDD, Item 15, page 60, requires a Principal Owner with at least 51% ownership to serve as the primary operator and devote full time, attention, and best efforts during operating hours. If that person does not participate day to day, the unit must have direct on-premises supervision by a General Manager.
For a manager-run sensitivity, the model subtracts the 2023 BLS annual mean wage of $63,630 for General and Operations Managers in the Florists industry. It does not add payroll taxes, benefits, bonuses, or recruiting costs, so the manager-run figures may be optimistic.
What remains after replacing the owner with a paid manager?
Owner-operator benefit compared with manager-run residual, by scenario.
Interpretation: The owner’s labor value is larger than the modeled residual business profit. A manager-run unit remains negative even in the upside case before payroll burden.
Source: 2025 FDD, Item 15, page 60; BLS May 2023 Florists wage estimates.
Why can’t Standard and Co-Brand units share one earnings number?
The fee structures and starting businesses are materially different. This is an official structural distinction in the 2025 FDD. A Co-Branded Franchised Unit converts an existing independent flower shop and pays a scheduled monthly continuing franchise fee. A Standard Franchised Unit is a new branded retail operation and generally pays 6% of defined Adjusted Gross Sales plus specified percentages on defined incoming and outgoing sales.
| Format | Official recurring fee structure | Conservative | Base | Upside |
|---|---|---|---|---|
| Co-Brand owner-operator | $850–$1,500 monthly schedule; modeled at year-five amounts by revenue band | $7,000 | $25,000 | $49,000 |
| Standard owner-operator | 6% of Adjusted Gross Sales, plus defined treatment of incoming and outgoing sales | −$6,000 | $8,000 | $29,000 |
| Fruit Bouquets Business | 6% of Fruit Bouquets Gross Sales; add-on only | No separate estimate: stand-alone revenue, product cost, and order-volume data are not disclosed. | ||
The Standard comparison applies the same government revenue and margin cases solely to isolate the 6% royalty effect. It excludes volume-based BloomNet, order-fulfillment, website, and other transaction fees, so it should not be read as a complete Standard-unit forecast. The current 3% Standard floral marketing fee and current Co-Brand floral marketing fee are not being charged, according to the 2025 FDD.
Which costs can move owner earnings most?
Gross margin, labor, occupancy, floral spoilage, and delivery economics can move the result more than the fixed Co-Brand fee. This is an estimated interpretation for a retail florist format. Item 6 supplies franchise obligations, but it does not disclose a complete franchisee expense statement.
| Cost or obligation | 2025 FDD treatment | Effect on this model |
|---|---|---|
| Co-Brand continuing franchise fee | $850 to $1,500 per month, depending on prior sales and agreement year | Included at $12,000, $15,000, and $18,000 annually |
| Co-Brand floral marketing fee | $250 per month, currently not charged; may rise to $750 with notice | Not deducted while current charge is $0; a future charge would reduce annual benefit by $3,000 to $9,000 |
| BloomNet membership and access | Tiered monthly amounts based on referred and fulfilled order volume | Not separately modeled because order volume is unknown |
| Order fulfillment and website charges | Per-order and monthly rates apply under specified programs | Not separately modeled; may materially reduce high-order-volume results |
| Occupancy, payroll, product cost, delivery, waste | No Item 19 expense statement | Embedded only through the broad IRS margin proxy; local actuals may differ substantially |
| Debt service and taxes | Buyer-specific | Debt principal and personal taxes excluded; no after-tax estimate is presented |
The model has no same-brand revenue distribution and no franchisee-level cost structure. The SUSB average is per employer establishment, not per owner, and the IRS margin covers a much broader retail category. A buyer should treat the range as a stress test, not a prediction.
What does Item 20 add to the earnings risk picture?
Item 20 shows contraction, not earnings. The official population fell from 50 franchised outlets at the start of fiscal 2025 to 37 at year-end, a net change of minus 13. That does not prove why units left or whether remaining outlets are profitable, but it raises the importance of former-franchisee interviews and outlet-specific records.
| Fiscal year | Franchised outlets at start | Franchised outlets at end | Net change |
|---|---|---|---|
| 2023 | 56 | 53 | −3 |
| 2024 | 53 | 50 | −3 |
| 2025 | 50 | 37 | −13 |
Source: 2025 FDD, Item 20, pages 73–77. Four design centers are included in the franchised totals. Item 20 also reported zero signed-but-not-open stores and zero projected new franchised openings as of June 29, 2025.
What should a buyer verify before relying on an owner-income estimate?
Verify unit-level sales, gross margin, payroll, occupancy, order-channel fees, and owner hours directly. The answer is uncertain because the current FDD has no Item 19 performance data. The FTC says buyers may request written substantiation for any financial performance claim and should speak with current and former franchisees.
- Ask whether any updated 2025 amendment or 2026 FDD adds an Item 19 financial performance representation.
- Request actual monthly sales, cost of goods, waste, delivery cost, labor, occupancy, BloomNet fees, and cash flow for any existing shop under consideration.
- Separate walk-in sales, local delivery, incoming orders, outgoing orders, Fruit Bouquets sales, and other product categories because fee and margin treatment differs.
- Interview both active owner-operators and manager-run franchisees, matching Standard and Co-Brand formats rather than blending them.
- Contact former franchisees listed in Item 20 and ask why the outlet transferred, was reacquired, closed, or left the system.
- Model the proposed lease, local wages, payroll burden, debt interest, debt principal, and required reinvestment without calculating personal after-tax income.
What is the strongest defensible earnings answer?
About $7,000 to $49,000 per year of estimated pre-tax owner-operator benefit for one Co-Branded Franchised Unit is the strongest defensible range from the available evidence, with a modeled base of about $25,000. It is scenario-based, not official. The largest driver is whether the owner performs the full-time operating role; using a paid manager turns all three modeled cases negative. The largest unresolved uncertainty is the absence of same-brand sales and expense data.
A buyer should verify the current Item 19, request written substantiation for any sales or income claim, obtain records for any existing outlet, and test the model against franchisee interviews. Revenue, business profit, owner labor compensation, debt service, distributions, and personal taxes must remain separate.