What was the amount of the contract termination liability for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Finance lease liability, less current portion | 275 | 131 | |
|---|---|---|---|
| Contract termination | 188 | 172 | |
| Note payable - store repurchase | 400 | - | |
| Contract liability, less current portion | 8,223 | 7,319 | |
| Operating lease liabilities, less current portion | 53,596 | 48,345 | |
| Total non-current liabilities | 62,682 | 55,967 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the contract termination liability was $188 in 2024 and $172 in 2023. This figure represents the potential financial obligation Batteries Plus Bulbs has if it terminates certain contracts. For a prospective franchisee, this indicates a relatively small liability related to contract terminations, suggesting that these events are infrequent or involve minimal financial impact.
It's important to note that this liability is classified as a non-current liability, meaning it is not expected to be settled within the next year. This could relate to long-term agreements or specific conditions that must be met before the liability becomes due. The small amount suggests that these terminations do not represent a significant financial risk for the company.
A potential franchisee should consider this information in the context of the overall financial health of Batteries Plus Bulbs. While the contract termination liability itself is not substantial, it is one of many liabilities that contribute to the company's total financial obligations. Understanding the nature of the contracts that could lead to termination liabilities would provide further insight into this figure.