What is the amount of damages being sought by the plaintiff in the lawsuit against Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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Pending
Ashwant Singh et al v. Batteries Plus, LLC et al, United States District Court for the Eastern District of California, Case No. 2:24-cv-00223; AAA Case No. 01-23-0005-9286 (commenced December 14, 2023). Plaintiff, a former Batteries Plus franchisee who operated a single Store in Fairfield, California, filed this action against Batteries Plus in California Superior Court – County of Solano, alleging breach of the franchise agreement and the implied covenant of good faith and fair dealing, violation of the California Franchise Investment Law, fraud and misrepresentation. Plaintiff alleges that Batteries Plus failed to provide Plaintiff with a "protected area" and prevent another franchisee from soliciting and servicing customers in Plaintiff's "market area," and made misrepresentations related to the initial investment information in Batteries Plus's FDD and revenue projections for the Store. Plaintiff seeks to rescind the Franchise Agreement and has demanded approximately $629,000 in damages, plus costs and attorneys' fees. In December 2023, Batteries Plus filed a Demand for Arbitration against Plaintiff seeking to recover lost future franchise fees in the
approximate amount of $281,000, and subsequently sought and obtained a removal of the case to United States District Court. In January 2024, Plaintiff filed an Objection to the Demand for Arbitration, an Answering Statement, and a Counterclaim, asserting the same claims that Plaintiff asserted in the state court case that Batteries Plus removed to federal court. On May 13, 2024, the federal court granted the Batteries Plus Motion to Compel Arbitration and dismissed the federal court action. The AAA appointed an Arbitrator in February 2024 and the Arbitration evidentiary hearing took place in February 2025. Just prior to the hearing, the Arbitrator bifurcated the proceedings and only took evidence on three of the Plaintiffs' claims, leaving one claim and Batteries Plus's claim for later proceedings, if necessary. As of the date of this Disclosure Document, the Arbitrator has not issued
Source: Item 3 — Litigation (FDD pages 15–16)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, a former franchisee, Ashwant Singh, filed an action against Batteries Plus alleging several violations including breach of the franchise agreement, violation of the California Franchise Investment Law, fraud, and misrepresentation. The franchisee claims that Batteries Plus Bulbs failed to provide a "protected area" and misrepresented initial investment information and revenue projections. As a result, the plaintiff is seeking to rescind the Franchise Agreement.
The franchisee has demanded approximately $629,000 in damages, in addition to costs and attorneys' fees. Batteries Plus Bulbs responded by filing a Demand for Arbitration against the former franchisee, seeking to recover lost future franchise fees of approximately $281,000. The case was initially removed to United States District Court but was later compelled to arbitration.
For a prospective franchisee, this litigation highlights the potential risks and costs associated with disputes. It is important to note that litigation can be expensive and time-consuming, regardless of the outcome. The fact that the arbitrator bifurcated the proceedings, leaving one claim and Batteries Plus Bulbs's claim for later proceedings, suggests that the dispute is complex and may take a significant amount of time to resolve. A prospective franchisee should seek legal counsel to fully understand the implications of this litigation and the potential risks associated with investing in a Batteries Plus Bulbs franchise.