Can Ascent be the sole source of supply for certain items for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
s and Related Products and Services
You must purchase for sale at your Store private label and branded batteries, light bulbs, repair components and related products as well as services from us, our designees or from other suppliers we approve. We (including our affiliate, Ascent) or our designees may be the designated or sole source of supply for certain batteries, light bulbs, repair components and related products as well as services. Ascent currently is the sole source of supply for certain batteries, light bulbs, repair components and related products as well as certain services. In addition, for certain device services that you cannot perform at the Store, including the repair and replacement of screens and batteries, you must send the device to Ascent for repair.
We have established a supply chain program, through Ascent, that is designed to make available to you and other Batteries Plus® franchisees quality private label and branded batteries, light bulbs, repair components and related products as well as certain services. Ascent negotiates supply contracts for the manufacture of our private label and branded batteries, light bulbs, repair components and related products. Ascent then arranges for the acquisition and distribution of these products to Batteries Plus® franchisees directly or through approved third-party suppliers. You will be required to pay for products purchased from Ascent by electronic transfer of funds. Ascent may purchase products directly and resell them to franchisees at a higher price.
Recycling Services
We have identified East Penn, Gopher Smelting, RSR & Sanders Lead as our currently approved suppliers for SLI batteries recycling. We have designated Battery Solutions, LLC ("Battery Solutions") as our preferred supplier for other battery recycling.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Ascent, an affiliate of Batteries Plus Bulbs, may be the sole designated supplier for certain batteries, light bulbs, repair components, related products, and services. Currently, Ascent is the sole source for some of these items. Additionally, franchisees are required to send devices to Ascent for repair services that cannot be performed at the store, such as screen and battery replacements. This arrangement is part of Batteries Plus Bulbs's supply chain program, which aims to provide franchisees with quality private label and branded products. Ascent negotiates supply contracts and arranges for the distribution of these products to franchisees.
This requirement means that a Batteries Plus Bulbs franchisee does not have the freedom to choose suppliers for these specific items and services. They must rely on Ascent as the sole provider, which could impact their costs and potentially limit their ability to negotiate better deals with alternative suppliers. While the FDD states that Batteries Plus Bulbs aims to receive volume discounts for the system, franchisees are not guaranteed the lowest possible prices, as Ascent may purchase products and resell them to franchisees at a higher price.
The FDD also mentions that one or more officers of Batteries Plus Bulbs have an indirect interest in Ascent. This relationship is important for prospective franchisees to consider, as it could influence the supply chain dynamics and pricing. While the FDD states that Batteries Plus Bulbs does not provide material benefits to franchisees based on the use of designated or approved sources, the reliance on Ascent as a sole supplier could have financial implications for franchisees. In fiscal year 2024, Ascent received approximately $158,760,000 in gross revenue from franchisee purchases of goods, products, and services.