That, and a potential lawsuit from breakfast cereal manufacturers Kelloggs, may have been persuasive. Someone felt that for their product to be taken more seriously, it needed a serious-sounding name. That must have been some party the night that name was chosen. It was first released in 1997 under the name of Fruity Loops, hence the current FL.
This is a DAW that was designed and marketed by Image-Line Software in Belgium.