In 2023, how did Batteries Plus Bulbs fund the acquisition of four franchised stores?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
subject to the achievement of specific operational targets by the repurchased stores, subsequent to the acquisition. If achieved, $600 of the earnout liability will be paid in 2025 and $400 will be paid in 2026. The contingent earnout liabilities are recorded with the notes payablestore repurchase on the consolidated balance sheets.
During 2023, Batteries Plus acquired the operating assets of four franchised stores using available cash on-hand. Batteries Plus now op
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, in 2023, Batteries Plus Bulbs acquired the operating assets of four franchised stores. The company used available cash on-hand to fund these acquisitions. After the acquisition, Batteries Plus Bulbs now operates these locations as company-owned stores.
The total purchase price for these four stores was $1,991. The allocation of this purchase price was based on the fair value of the assets acquired and liabilities assumed. This included $495 allocated to inventory, $216 to property and equipment, and $3 to other assets. A significant portion, $1,423, was allocated to goodwill, which represents the intangible assets associated with the acquired businesses, such as brand reputation and customer relationships. Additionally, $146 was attributed to current liabilities.
This information is relevant for prospective franchisees as it provides insight into Batteries Plus Bulbs's growth strategy and financial management. The company's ability to use available cash to acquire existing franchised stores indicates financial stability. It also shows that Batteries Plus Bulbs is willing to invest in expanding its corporate-owned store network, which could potentially impact the support and resources available to franchisees.