What constitutes a 'Qualified E-Commerce Transaction' for Batteries Plus Bulbs franchisees?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we agree to assign to you (and you must accept) all rights and obligations respecting those e-commerce transactions (each a "Qualified E-Commerce Transaction") in which: (1) a customer purchases through our Batteries Plus® website or other online portal any batteries, light bulbs and/or related products and accessories or device repair or other services; (2) the products will be shipped to the customer from our or our affiliate's warehouse or from a designated third party warehouse or, if applicable, we or our affiliate performs the services requested, and (3) the customer: (a) selects your Store at which the customer will pick up the product(s) or desires to conduct business with you, or (b) does not select a specific franchisee or store but provides an address to which the products (or device for which services are performed) will be shipped which is within the lesser of a 20 mile radius of your Store location or an area encompassing a commercially reasonable estimate of a current population of 250,000 (the "E-Commerce Territory"). If a proposed e-commerce transaction falls within the E-Commerce Territory of more than one franchisee, we will assign the transaction to the franchisee whose Batteries Plus® store is closest to the address provided by the customer.
Source: Item 12 — Territory (FDD pages 43–46)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, a 'Qualified E-Commerce Transaction' involves specific conditions related to online purchases. These conditions dictate when a franchisee is entitled to rights and obligations related to e-commerce sales within their territory. For a transaction to qualify, a customer must purchase batteries, light bulbs, related products, accessories, or device repair services through the Batteries Plus Bulbs website or online portal. The purchased products must be shipped from Batteries Plus Bulbs's or its affiliate's warehouse, or a designated third-party warehouse, or the services must be performed by Batteries Plus Bulbs or its affiliate.
Furthermore, the customer must either select the franchisee's store for product pickup or indicate a desire to conduct business with that specific franchisee. Alternatively, if the customer does not select a specific store but provides a shipping address within a defined area—the lesser of a 20-mile radius of the franchisee's store or an area encompassing a commercially reasonable estimate of a current population of 250,000 (referred to as the 'E-Commerce Territory')—the transaction may qualify. If an e-commerce transaction falls within the E-Commerce Territory of multiple franchisees, the transaction is assigned to the franchisee whose Batteries Plus Bulbs store is closest to the customer's provided address.
This definition is important for prospective franchisees as it clarifies how they can benefit from online sales within their designated territory. It also highlights the importance of the Omni-Channel Program, which Batteries Plus Bulbs uses to manage online sales and distribution. Franchisees should understand these conditions to effectively manage their business and maximize revenue opportunities from both in-store and online channels. Batteries Plus Bulbs retains the right to modify or terminate the Omni-Channel Program, but cannot unilaterally change certain e-commerce territory rights granted in the Franchise Agreement.