factual

Does the Batteries Plus Bulbs agreement intend to confer rights to any person not a party to the agreement?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

The license granted to Franchisee under this Agreement is personal in nature, may not be used at any location other than the Store, does not include the right to sell products or services identified by the Licensed Marks at any location other than at the Store, and does not include the right to sell products or services identified by the Licensed Marks through any other channels of distribution, including the Internet (or any other existing or future form of electronic or digital commerce).

Franchisee will not have the right to subfranchise or sublicense any of its rights under this Agreement.

Source: Item 22 — Contracts (FDD page 80)

What This Means (2025 FDD)

Based on the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the franchise agreement is personal in nature and does not allow the franchisee to subfranchise or sublicense any rights granted within the agreement. Specifically, the agreement states, "The license granted to Franchisee under this Agreement is personal in nature, may not be used at any location other than the Store, does not include the right to sell products or services identified by the Licensed Marks at any location other than at the Store, and does not include the right to sell products or services identified by the Licensed Marks through any other channels of distribution, including the Internet (or any other existing or future form of electronic or digital commerce)." This restricts the franchisee from extending their operational rights to other parties or locations.

Furthermore, the Batteries Plus Bulbs agreement explicitly prohibits subfranchising or sublicensing, reinforcing that the rights are solely for the franchisee. The document states, "Franchisee will not have the right to subfranchise or sublicense any of its rights under this Agreement." This clause ensures that the operational control and brand representation remain directly with the approved franchisee, preventing unauthorized expansion or delegation of responsibilities.

In summary, the Batteries Plus Bulbs franchise agreement is designed to be a direct agreement between the franchisor and the franchisee, with no provisions for transferring rights to third parties through subfranchising or other means. This structure is typical in franchising to maintain quality control and brand consistency across all locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.