How does Batteries Plus Bulbs account for shipping revenue?

According to the 2025 Batteries Plus Bulbs FDD, the company records shipping revenue as an offset to shipping expense. This accounting treatment is considered a fulfillment activity because the shipping and handling are performed before the customer obtains control of the goods.

For a prospective franchisee, this means that the revenue generated from shipping charges is not recognized as a separate revenue stream. Instead, it reduces the overall shipping expenses incurred by Batteries Plus Bulbs. This approach simplifies the accounting process by netting shipping revenue against shipping costs, providing a clearer picture of the net expenses related to fulfillment.

In 2024, the revenue and costs of shipping, net of selling and delivery expenses, were included in operating expenses and totaled approximately $7,601. In 2023, this figure was $7,473. This indicates that Batteries Plus Bulbs manages shipping revenue and expenses as an integrated component of its operating activities, rather than treating shipping as a distinct profit center. This accounting practice is important for franchisees to understand as it affects how the financial performance of shipping activities is reflected in the company's financial statements.