LITTLE ROCK — Little Rock-based Candy Bouquet International, which has home-based and storefront franchises worldwide, has been bought by a Houston couple who hope to put the chain back on a path of growth.
The company’s franchises are down to about 420, from about 900 in 2007. It employs about 10 in Little Rock, down from some 40 workers at its peak, said Jim Wheeler, president. His wife, Janet, will be listed as owner.
Jim Wheeler, an obstetrician and lawyer, said franchises have fallen because gift-giving of all kinds declined with the downturn in the economy in recent years.
The National Retail Federation said couples’ average spending on each other this year on Valentine’s Day was $69 compared with almost $80 in 2008. Valentine’s Day and Easter are two of Candy Bouquet’s big holidays.
“We have had some sad stories of ... franchises that just weren’t successful, but this simply reflects the business risk of being open during a recession like this,” said Wheeler, who added that he aims to enhance training for franchisees.
A purchase price was undisclosed for the business, which sells flower-like arrangements of candy.
Jim Wheeler said Candy Bouquet is profitable, has debt consisting entirely of a $14,000 loan for a copier, and “sit[s] on half a million dollars in inventory.”
“So from a business point of view, it was a very wise purchase on my part,” he said.
The company says its strengths include being a relatively low-cost franchise. Total investment for starting a franchise ranges from about $12,500 to about $49,400, Entrepreneur.com said.
Jim Benham, Candy Bouquet’s chief operating officer, said the initial costs vary with a territory’s population. The costs include the franchise license and inventory, he said.
Margaret McEntire started Candy Bouquet in Houston in 1989 but closed a year later, according to the company’s website. McEntire moved to Little Rock, opened a store, and kicked off the franchise operation in 1993. Candy Bouquet began expanding overseas in 1995, according to an article on export.gov, a federal website.
McEntire remains a consultant for the company, Wheeler said. She also owns the building in which the company is based and will be Candy Bouquet’s landlord. It operates out of a warehouse at 510 McLean St., near the Clinton Presidential Center, after moving from the River Market area.
The company has a number of competitors.
FTD, the flower delivery service, is among companies that also sell candy in bouquetlike arrangements, and has a “Sweet Shop” division of its website that sells candy such as Godiva chocolates, flavored popcorn and a bouquet with Tootsie Rolls, Snickers and other candy.
Edible Arrangements, which has franchises that sell bouquets of fresh fruit, fruit dipped in chocolate and other food, and was cited by Wheeler as a competitor, has seen its number of franchises grow even during the recession.
Amanda Rich, who works for a public-relations firm representing Edible Arrangements, said the company now has 1,092 locations in 15 countries worldwide, up from about 555 in 2007.
Wheeler said Candy Bouquet sells the franchisees the candy, decorative wrappings, stuffed animals and other items used in bouquets.
New franchise owners come to Little Rock to train, he said.
Wheeler said he intends to give franchise owners more business-oriented help, such as offering more training “in how to keep track of the cost and yields of their candy bouquets” as well as being “more direct with marketing ideas.”
For example, the company will help educate franchisees to remember to market bouquets to people at banks and real estate agencies who buy corporate gifts, he said.
“We’ve kind of focused more on the creative side of how to make these clever little bouquets,” Wheeler said. “Now we’re going to take a little bit of a firmer look at the business side.”
Business, Pages 23 on 12/13/2011