In 2023, how many franchised stores did Batteries Plus Bulbs acquire?
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, the company acquired the operating assets of four franchised stores in 2023. These acquisitions were made using available cash on-hand, and Batteries Plus Bulbs now operates these locations as company-owned stores.
The total purchase price for these four stores was $1,991,000. This amount was allocated based on the fair value of the assets acquired and liabilities assumed. Specifically, $495,000 was allocated to inventory, $216,000 to property and equipment, $3,000 to other assets, and $1,423,000 to goodwill. Additionally, $146,000 was allocated to current liabilities.
For a prospective franchisee, this information indicates Batteries Plus Bulbs' strategy of growth through acquisition of existing franchised locations. It also provides insight into how the company values and accounts for such acquisitions, including the allocation of purchase price to various asset categories and goodwill. This could be relevant if a franchisee is considering selling their store back to the company in the future.