Woman sues 1-800-FLOWERS.COM

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mlou

mlou

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Nov 27, 2003
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Yeah, and she's probably going to want to sue that lawyer who told her that he could get her anything out of this after he gets through fleecing her.

While I'm not an 800 Flowers fan, they apparently sold her a franchise. They certainly didn't adopt her. Making it work was her responsibility.

It's a long established and well known fact that wire services and big floral organizations like 800 Flowers absolutely depend on a clientele that is less astute than most business people and, in fact, is considered to largely be made up of stupid people. Taking advantage of the stupidity of others is what they base their hopes and fortunes on. If she actually sunk $800,000 into that bunch, then she's certifiable as belonging to that group. And she probably deserved what she got.

What I can't figure out is . . . if she's only got a rudimentary education from a third world country, how did she get that much money to blow on an 800 franchise? Or, sad to say, maybe I can. I personally know of more than 6 businesses owned by foreign nationals in our area alone that were created with either low interest or no interest aid and support from the US government. Two of them are multi-location, multi-million dollar deals. So . . . I wonder . . .

Nah, forget it. Just makes me mad just to think about it.
 
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From The article:
"The papers say she was aware of certain franchising fees -- 6 percent on all sales, 3 percent on sales through the company's national network, and 2.25 percent for marketing -- but was not informed that the company would retain an additional 26 percent of the sales prices of all orders placed through their network. She gave up the franchise recently ."

I would be surprised if 800 is not covered in there contract. Do the franchise pay twice on an incoming order. The percent through bloomnet and a further percent on the net dollars? Most likely also a transmission fee.
 
David said:
From The article:
"The papers say she was aware of certain franchising fees -- 6 percent on all sales, 3 percent on sales through the company's national network, and 2.25 percent for marketing -- but was not informed that the company would retain an additional 26 percent of the sales prices of all orders placed through their network. She gave up the franchise recently ."

I would be surprised if 800 is not covered in there contract. Do the franchise pay twice on an incoming order. The percent through bloomnet and a further percent on the net dollars? Most likely also a transmission fee.
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Wouldn't this be the wire in percentage that they are taking. I believe that if you have an 800 franchise, you belong to the network just like other florists, they just take more percentage. The 26% would be the wire ine fee from getting the order through the network. I don't see how she has a case. A franchise is not a garaunteed success as a matter of fact, in the flower business, I think it has a greater chance of failure to begin with. With all the fees the franchise incurs and the amount of product you have to carry and the look you have to have, Unless you have alot of money to back you up while building the business there is no starting out slow. You have to keep up apperances the same as all the other francises wether or not you are selling the same volume. Where as if you own your own you control how much you spend on what and how much inventory you carry.
 
Franchises are governed with very strict disclosure laws, both at the state and federal level. The case has been filed in state court so her attorney may have found something in NY law.

It sounds as if the commission schedule on orders sold through 1800 wasn't layed out in clear language. I mean, if you're already paying 11.25% to the company, who on earth would agree to give another 26%? ;)
 
CHR said:
Franchises are governed with very strict disclosure laws, both at the state and federal level. The case has been filed in state court so her attorney may have found something in NY law.
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Or, the lawyer just found a media-attracting litigation. After Grumman left here Long Island (we are located in Long Island), 1-800-flowers is one of the biggest corporations still in Long Island. If you are a lawyer in Long Island and sues 1-800, all the local media will come to you.

Otherwise I don't see why he could possibly be interested in a boring case like this, which involves relatively small amount of money (for a corporate-litigation lawyer) and will likely be settled out of court anyway. In general, seek of justice is the least likely motivation for a lawyer. Money is a good bet, but not in this case. I bet this lawyer is going to run for the County Executive office next year.
 
$28,500 Franchise Fee. . . .

seems low to start with.

$850,000 Invested
- 28,500 FF 1997
-300,000 Build-out & Inventory 1999 opened
$521,500 Loss over 7 years????
$74,500 Per year (maybe her salary)

The articles first "comment":

From Joe Six Pack:
"Welcome to America"
Click to expand...
 
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