What was the Batteries Plus Bulbs' contract termination liability as of December 31, 2023?

Based on the 2025 Franchise Disclosure Document, Batteries Plus Bulbs' contract liabilities stem from franchise fees paid by franchisees. These liabilities are categorized on the company's balance sheets as either a current portion or a non-current portion, depending on when the revenue associated with those fees is expected to be recognized. This means Batteries Plus Bulbs recognizes revenue from franchise fees over a period of time, rather than all at once.

The FDD states that the company classifies these liabilities within current portion of contract liabilities and contract liabilities, less current portion within our consolidated balance sheets based on the expected timing of revenue recognition associated with these liabilities.

However, the 2025 FDD does not explicitly state the exact amount of contract termination liability for Batteries Plus Bulbs as of December 31, 2023. For a prospective franchisee, it would be prudent to ask Batteries Plus Bulbs for specific details on the total amount of these liabilities and how they are calculated, to fully understand the financial obligations related to franchise fees.