About Foliage Design Systems Franchise
Foliage Design Systems is an interior plant design and maintenance franchise that has been in the franchise space since 1980.
The company specializes in designing, installing, and maintaining live and artificial plant displays for commercial spaces including offices, hotels, hospitals, and retail environments.
Each location offers customized greenery solutions tailored to the aesthetic and environmental needs of each client.
Foliage Design Systems Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 to $29,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Minimum 1% of Gross Revenue (local advertising); Regional Marketing Fund not yet established | National brand fund |
| Total Investment Range | $44,400 – $64,400 | Includes build-out, inventory, working capital |
The investment range of $44K–$64K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (Minimum 1% of Gross Revenue (local advertising); Regional Marketing Fund not yet established) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Equipment, Furniture and Fixtures | $2,000 | $5,000 |
| Cargo Van or Truck | $1,500 | $1,500 |
| Real Property | $1,800 | $3,600 |
| Leasehold Improvements; Construction Costs | $2,500 | $5,000 |
| Signage | $1,000 | $1,500 |
| Opening Inventory – Plants & Planters | $1,500 | $2,000 |
| Opening Inventory – Marketing Brochures & Materials | $300 | $500 |
| Travel and Initial Training Expenses | $1,500 | $2,000 |
| Insurance | $1,500 | $2,500 |
| Utility/Security Deposits | $1,500 | $2,500 |
| Professional Fees | $2,500 | $5,000 |
| Supplies | $700 | $1,100 |
| Miscellaneous Opening Costs | $2,500 | $5,000 |
| Additional Funds - 3 months | $3,600 | $7,200 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | A fee equal to our professional fees and costs to process your renewal |
| Audit Fee | Deficiency + late payment charges + interest; cost of inspection if due to non-reporting or understatement |
| Late Fee | $35 per occurrence, plus interest on the balance owed at 1.5% per month or the highest rate permitted by law, whichever is greater. |
| Sales, excise, or gross receipts tax | If required by the federal, state or locality in which your franchise is located. May include sales, excise or gross receipts tax or similar type tax on the initial franchise fee, royalty, training, advertising fee, products, and any other services, products, or fees. |
| Advertising Materials | Reasonable cost of all material supplied, including the pro rata share of cost of creative work, printing, engraving, and films. |
| Additional Personnel Training | The then current per diem per trainer (at present, $500 per day per trainer), plus expenses |
| Training Courses | Reasonable attendance fees |
| Testing | Non-refundable fee for cost of testing |
| Products and Services | Will vary under circumstances |
| Liquidated Damages | Will vary under circumstances |
| Management Fee | 15% of Gross Revenue |
| Training Fee for Personal Representative | $10,000 |
| Indemnification | Will vary under circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to ten business days |
| Classroom Training | 48-65 |
| On-the-Job Training | 20-24 (approx.) |
| Training Location | Orlando, Florida (onsite) and at the location of your Franchised Business (offsite) |
| Additional Training | Franchisees have the right to attend additional training at a mutually acceptable time and place. A per diem training fee (currently $500 per day per trainer) plus expenses for franchisor representatives (travel, lodging, meals) must be paid by the franchisee. Franchisees are not required to attend more than two training courses per year, each not exceeding two days. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Minimum population of 400,000 |
| Description | The exclusive territory gives location exclusivity, typically defined by county lines. Franchisees may only sell products and provide services to customers within their Exclusive Territory. Relocation within the Exclusive Territory is permitted with franchisor approval. The franchisor and its affiliates will not establish or allow another franchise within the geographical boundaries of the Exclusive Territory. However, the franchisor and its affiliates may sell products through alternative distribution channels (e.g., Internet, catalog sales, telemarketing) outside the Exclusive Territory. If the franchisor receives orders for proprietary products or other products for delivery/performance in the franchisee's Exclusive Territory, the franchisee will be offered the opportunity to fulfill the order at the franchisor's established price. If the franchisee declines, the franchisor or a third party may fulfill it without compensation to the franchisee. Corporate accounts with multiple locations may be serviced by the franchisor, but the franchisee will be offered the opportunity to service locations within their Exclusive Territory on franchisor-established terms. Failure to meet minimum gross sales revenue (10% increase over previous calendar year from Year 2-10) may result in loss of exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two renewal terms of 5 years each |
| Renewal Fee | A fee equal to our professional fees and costs to process your renewal |
| Renewal Conditions | Franchisee must provide written notice (9-6 months prior to term end), be in substantial compliance with agreements, enter into current franchise and ancillary agreements (fees same as current, no further initial franchise fee), all monetary obligations current for preceding 12 months, execute a general release, and pay a renewal fee equal to professional fees and costs incurred by franchisor. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Transferee must be in full compliance with agreements, settle all outstanding debts, execute current franchise and ancillary agreements, franchisee and officers/directors/members/shareholders execute a general release, transferee purchases all assets and assumes liabilities, transferee meets financial and other criteria, transferee completes initial training, purchase/sale agreement subject to franchisor approval, transferee/owners/affiliates do not operate competing business (except other FDS franchises), any financing by franchisee is subordinate to franchisor's royalty fees, and transferring owners/spouses do not engage in similar business for two years post-transfer. |
| Termination for Cause | Automatic termination without right to cure for: failure to open business or complete training, abandonment, material misrepresentation, insolvency, felony conviction or misconduct affecting reputation, unauthorized transfer, unauthorized use/disclosure of confidential information or proprietary marks, loss of facility possession without relocation, or fraud/misrepresentation. Termination with right to cure (5 or 30 days) for: inaccurate gross revenue reporting, failure to submit reports, failure to make payments, selling outside territory, or other defaults under agreement/manual. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee may not directly or indirectly offer interior landscaping products or services (Similar Business) in the United States. Following termination, expiration, or transfer, franchisee may not directly or indirectly offer Similar Business for two years within a 60-mile radius of their Exclusive Territory or any unit in the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the franchisee (or a principal/general partner if a business entity) or a fully trained manager must devote full time and best efforts to the management and operation of the Franchised Business. The business must have on-premises supervision by a manager who completed training. If an individual, the franchisee is recommended to be the fully trained manager. Managers and other key employees must enter into non-compete and confidentiality agreements. |
| Required Suppliers | Franchisees are obligated to purchase or lease equipment, furniture, fixtures, a work vehicle, and related supplies that meet minimum standards and specifications or are from approved suppliers. Live foliage plants, silk, preserved, replica, and artificial flowers and plants must be purchased only from suppliers whose products meet franchisor standards and specifications. |
| Supply Restrictions | The franchisor is an approved supplier, but not the only approved supplier, for marketing brochures, training books, uniforms, feather dusters, and maintenance supplies. The franchisor reserves the right to develop proprietary materials (promotional materials, logo items, signs, interiorscape products) that may be available exclusively from them on a fee basis with a reasonable mark-up. An affiliate is an approved, but not the only approved supplier, of seasonal/holiday décor. The franchisor may approve a single distributor or other supplier for any product and may approve a supplier only as to certain products, except for 'Approved Products' which shall be purchased exclusively from the franchisor or its designee. |
| Franchisor Revenue from Suppliers | $611.88 (0.12% of total revenue) from marketing materials and feather dusters in fiscal year 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, nor do we guarantee your note, lease, or any other obligation. |
Foliage Design Systems Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Foliage Design Systems Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Foliage Design Systems System Growth
Foliage Design Systems currently operates 19 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 3 | 25 |
| 2021 | 0 | 2 | 23 |
| 2022 | 0 | 1 | 22 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 19 states: CA, CT, HI, IL, IN, KY, MD, MI, MN, NE, NY, ND, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Manuel Naya Jr., CPA LLC for year ending October 31.
Foliage Design Systems Franchise — FAQ
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