Can Batteries Plus Bulbs assign its option to purchase and assignment of leases to another party?

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Batteries Plus Bulbs retains the right to assign its option to purchase and assignment of leases to another party, independent of the rest of the franchise agreement. This clause is specifically related to the event that the franchise agreement expires or is terminated for reasons not attributable to Batteries Plus Bulbs. In such cases, Batteries Plus Bulbs has the option to purchase the franchisee's assets.

This provision allows Batteries Plus Bulbs to maintain control over the location and assets of a store if a franchise agreement ends. It ensures that Batteries Plus Bulbs can continue operations at that location, either directly or through an assignee, without disruption. The assets subject to this purchase option include tangible and intangible assets related to the store, excluding unsalable inventory, cash, short-term investments, and accounts receivable. Batteries Plus Bulbs defines 'salable' batteries as starting, lighting, ignition, and sealed lead acid batteries in good condition with a manufacturer's code not older than nine months from the date of manufacture.

For a prospective franchisee, this means that upon expiration or termination of the franchise agreement (not due to Batteries Plus Bulbs' fault), they may be required to sell the store's assets and assign the lease to Batteries Plus Bulbs or its assignee. This could impact the franchisee's ability to sell the business to a third party or continue operating a similar business at the same location after the franchise agreement ends. The franchisee should pay close attention to the conditions under which Batteries Plus Bulbs can exercise this option and the valuation methods used to determine the purchase price of the assets.