Can the Avalara Avatax Service Fee increase for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
e Note 11 and Item 12 | | Avalara Avatax Service Fee | Varies, currently $26 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee | | Type of Fee | Amount (See Note 1) | Due Date | Remarks | |------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Payment Gateway Fee | Varies, currently $22 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee | | Salesforce.com CRM Fee | Varies, currently $50 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee | | Managed Security Services (PCI Compliance) Program Fee | Currently $170 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the Avalara Avatax Service Fee, which is currently $26 per month, is subject to increase. This fee is payable monthly. The FDD specifies that the Avalara Avatax Service Fee may increase if Batteries Plus Bulbs' third-party costs increase. However, the portion of the fee attributable to Batteries Plus Bulbs' overhead or administrative costs will not exceed 10% of the total fee.
This means that as a Batteries Plus Bulbs franchisee, you should be prepared for potential fluctuations in the Avalara Avatax Service Fee. These fluctuations are tied to the costs Batteries Plus Bulbs incurs from third-party providers. It is important to note that while the fee can increase, Batteries Plus Bulbs caps its own administrative portion of the fee at 10% of the total.
Franchisees should monitor any communications from Batteries Plus Bulbs regarding changes to this fee and factor potential increases into their financial planning. Understanding the conditions under which the fee may change allows franchisees to better manage their expenses and maintain profitability. This fee is similar to other fees, such as the Payment Gateway Fee, Salesforce.com CRM Fee, and Managed Security Services (PCI Compliance) Program Fee, in that they may increase if Batteries Plus Bulbs' third party costs increase, with a 10% cap on the portion of the fee attributable to overhead or administrative costs.