What assets are excluded from the Batteries Plus Bulbs franchisor's option to purchase?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
tely initiate modifications to the premises of the former Store or completes such modifications with any period of time Franchisor deems appropriate, Franchisee agrees that Franchisor or its designated agents may enter the premises of the former Store to make such modifications, at Franchisee's risk and expense, without responsibility for any actual or consequential damages to Franchisee's property or others, and without liability for trespass or other tort or criminal act.
- C. Franchisor Option To Purchase Store. If this Agreement expires or is terminated for any reason (other than the fault of Franchisor), Franchisor has the option, upon thirty (30) days written notice from the date of expiration or termination, to purchase from Franchisee any or all of the tangible and intangible assets relating to the Store (excluding any unsalable inventory, cash, short-term investments and accounts receivable) as Franchisor determines (collectively, the "Purchased Assets") and to an assignment of Franchisee's lease for (1) the Store premises (or, if an assignment is prohibited, a sublease for the full remaining term under the same provisions as Franchisee's lease) and (2) any other tangible leased assets used in operating the Store.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, if the Franchise Agreement expires or is terminated for any reason (other than the fault of the Franchisor), Batteries Plus Bulbs has the option to purchase the tangible and intangible assets related to the store. However, certain assets are excluded from this purchase option.
The assets excluded from the franchisor's option to purchase include any unsalable inventory, cash, short-term investments, and accounts receivable. Batteries Plus Bulbs defines "salable" batteries as starting, lighting, and ignition batteries and sealed lead acid batteries in salable condition with a manufacturer's code not exceeding nine months from the date of the manufacturer's shipment.
Batteries Plus Bulbs will periodically establish standards for other products deemed "unsalable inventory" and provide these standards to the franchisee in the Operations Manual or in writing. This ensures that both parties are clear on what constitutes unsalable inventory at the time of potential purchase, providing clarity and potentially preventing disputes during the termination or expiration process.