What constitutes a breach of the Batteries Plus Bulbs agreement regarding assignment or transfer?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Any assignment or transfer without Franchiser's prior written consent constitutes a breach and conveys no rights to or interests in this Agreement to an assignee.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, any assignment or transfer of the franchise agreement without the franchisor's prior written consent constitutes a breach of the agreement. This means that a franchisee cannot sell, subfranchise, or otherwise transfer their rights or ownership in the franchise without first obtaining approval from Batteries Plus Bulbs.
Batteries Plus Bulbs retains the right to set conditions for any proposed transfer or assignment. These conditions may include ensuring the franchisee is in full compliance with all agreements, that the proposed transferee meets the franchisor's standards, and that the transferee completes the required training program. Additionally, Batteries Plus Bulbs may require the franchisee to pay a transfer fee and sign a general release of claims against the franchisor.
This requirement protects Batteries Plus Bulbs by ensuring that any new franchisee meets their standards and is properly trained to maintain the brand's reputation and operational consistency. It also allows Batteries Plus Bulbs to ensure compliance and resolve any outstanding issues before a transfer occurs. Franchisees should be aware of these restrictions and the potential costs and requirements associated with transferring their franchise.