When was an Arbitrator appointed by the AAA in the litigation involving Batteries Plus Bulbs?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, in the case of Ashwant Singh et al v. Batteries Plus, LLC et al., the American Arbitration Association (AAA) appointed an arbitrator in February 2024. This litigation involves a former Batteries Plus Bulbs franchisee alleging breach of contract, violation of the California Franchise Investment Law, fraud, and misrepresentation. The franchisee is seeking to rescind the Franchise Agreement and has demanded approximately $629,000 in damages, plus costs and attorneys' fees. Batteries Plus Bulbs has counterclaimed, seeking to recover lost future franchise fees in the approximate amount of $281,000.

The federal court granted Batteries Plus Bulbs's Motion to Compel Arbitration and dismissed the federal court action. The evidentiary hearing for the arbitration took place in February 2025, but the arbitrator bifurcated the proceedings, taking evidence on only three of the plaintiff's claims and leaving one claim and Batteries Plus Bulbs's claim for later proceedings if necessary. As of the date of the 2025 Disclosure Document, the arbitrator had not yet issued a decision.

This information is relevant for prospective franchisees as it provides insight into the types of disputes that can arise between Batteries Plus Bulbs and its franchisees, as well as the company's approach to resolving such disputes through arbitration. Franchisees should be aware of the potential costs associated with litigation and arbitration, including damages, costs, and attorneys' fees. The fact that the arbitrator bifurcated the proceedings and had not issued a decision as of the date of the FDD highlights the potentially lengthy and complex nature of arbitration.