What is the condition for a Batteries Plus Bulbs franchisee to participate in a cooperative advertising program?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
ia Program. Franchisor may spend in any fiscal year an amount greater or less than the aggregate contributions of Batteries Plus® stores to such account in that year. Franchisor will determine the strategy, content, implementation and other aspects of the Digital Marketing and Local Media Program. Upon written request, Franchisor will provide Franchisee an annual unaudited statement of the receipts and disbursements of any separate Digital Marketing and Local Media Program account for the most recent calendar year.
C. Cooperative Advertising. Franchisee will participate in, support and contribute to one or more regional or local cooperative advertising or marketing programs that Franchisor may establish in an area or region where Franchisee's Store is located as designated by Franchisor. If a cooperative is established, Franchisee must contribute an amount that Franchisor determines, up to a total of the greater of three percent (3%) of Franchisee's Store Net Revenues each calendar year or the Minimum Store Promotion Requirement; provided that Franchisee's obligations each calendar year under this Section 11(C) will be limited such that Franchisee's combined obligations under Sections 11(B) and 11(C) will not exceed the "Minimum Store Promotion Requirement" as described in Section 11(D) below. Franchisor reserves the right to designate regional and local advertising or marketing markets, to establish regional advertising or marketing councils and to establish the bylaws and other rules under which each cooperative will operate.
D. Local Advertising and Store Promotion. To the extent Franchisee's combined contributions respecting the Digital Marketing and Local Media Program and regional or local cooperative advertising or marketing programs due under Sections 11(B) and 11(C) above, together with amounts spent on "approved" Store advertising and promotion activities, during any calendar year are less than the "Minimum Store Promotion Requirement" (as defined below), Franchisee will spend additional amounts during such calendar year on "approved" Store advertising and promotional activities in Franchisee's local geographic area to satisfy the Minimum Store Promotion Requirement. For purposes of this Section, the term "Minimum Store Promotion Requirement" means: (i) d
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, participation in cooperative advertising programs is not optional. A franchisee is required to participate, support, and contribute to regional or local cooperative advertising or marketing programs that Batteries Plus Bulbs establishes within the franchisee's designated area or region.
If a cooperative is established, the franchisee must contribute an amount determined by Batteries Plus Bulbs, up to the greater of 3% of the store's net revenues each calendar year or the Minimum Store Promotion Requirement. However, the franchisee's combined obligations under both the Digital Marketing and Local Media Program and the cooperative advertising will not exceed the Minimum Store Promotion Requirement.
The Minimum Store Promotion Requirement is defined as a pro rata amount of $20,000 during the first calendar year based on the number of weeks the store was in operation. For each subsequent full calendar year, it is the greater of 4% of the store's net revenues from the previous year or $20,000. Batteries Plus Bulbs retains the right to designate advertising markets, establish regional advertising councils, and set the rules for each cooperative's operation.