What was the amount of accrued warranty for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND MEMBER'S EQUITY | |||
|---|---|---|---|
| Current liabilities | |||
| Accounts payable | $ 33,297 | $ 23,497 | |
| Accrued salaries and benefits | 3,618 | 7,046 | |
| Note payable - store repurchase | - | 930 | |
| Accrued warranty | 3,032 | 2,960 | |
| Other accrued expenses | 3,379 | 2,829 | |
| Due to franchisees | 380 | - | |
| Current portion of operating lease liabilities | 5,582 | 5,915 | |
| Current portion of finance lease liability | 44 | 100 | |
| Current portion of contract liability | 1,073 | 1,372 | |
| Total current liabilities | 50,405 | 44,649 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the accrued warranty for 2023 was $3,032. This figure represents the company's estimated liability for warranties on products or services it has provided. Accrued warranty is a current liability, meaning it represents obligations due within one year.
For a prospective Batteries Plus Bulbs franchisee, understanding the accrued warranty is important for assessing the company's financial health and potential future obligations. A higher accrued warranty could indicate a higher volume of warranty claims or more generous warranty terms, which could impact profitability. It's also worth noting that the accrued warranty decreased slightly from $3,123 in 2022 to $3,032 in 2023.
Accrued warranties are a common liability for franchise systems that sell products with warranties. Franchisees should inquire about the specifics of the warranty policies, how warranty claims are handled, and how the accrued warranty is calculated to fully understand the potential financial implications.