Does the Batteries Plus Bulbs agreement confer rights to third parties?

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, franchisees are explicitly prohibited from subfranchising or sublicensing any rights granted to them under the Franchise Agreement. This means a franchisee cannot grant another party the right to operate a Batteries Plus Bulbs store under their franchise agreement. This restriction ensures that Batteries Plus Bulbs maintains control over who operates stores under its brand and system.

However, Batteries Plus Bulbs retains the right to assign the Franchise Agreement to another party. Specifically, Batteries Plus Bulbs can fully assign the agreement to an assignee or legal successor, who then assumes Batteries Plus Bulbs' obligations under the agreement. Batteries Plus Bulbs also reserves the right to outsource or assign any of its obligations under the agreement to an affiliate or third party without needing the franchisee's consent.

In practical terms, a Batteries Plus Bulbs franchisee cannot transfer their rights to another operator without the franchisor's approval, but Batteries Plus Bulbs has considerable latitude to transfer its own obligations and the agreement itself to other entities. This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility in managing its business and network.