When did the Arbitration evidentiary hearing take place in the litigation involving 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, an Arbitration evidentiary hearing took place in February 2025 regarding a legal dispute with a former franchisee. The dispute, which began in December 2023, involves allegations of breach of contract, fraud, and misrepresentation related to a "protected area" and initial investment information. The former franchisee is seeking $629,000 in damages, plus costs and attorneys' fees. Batteries Plus Bulbs has counterclaimed, seeking $281,000 in lost future franchise fees.
The document indicates that the federal court granted Batteries Plus Bulbs's Motion to Compel Arbitration on May 13, 2024, and dismissed the federal court action. An Arbitrator was appointed in February 2024. During the February 2025 hearing, the Arbitrator decided to address only three of the Plaintiff's claims initially, deferring one claim and Batteries Plus Bulbs's claim for later consideration if needed.
As of the date of the 2025 Disclosure Document, the Arbitrator had not yet issued a decision. This ongoing litigation and arbitration process highlights the potential for legal disputes in the Batteries Plus Bulbs franchise system and the associated costs and time involved in resolving such disputes. Prospective franchisees should be aware of these potential legal challenges and consider them when evaluating the franchise opportunity.