Is the Batteries Plus Bulbs contribution to the profit-sharing plan a fixed amount, or is it discretionary?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the company has a qualified 401(k) contributory profit-sharing plan that covers all eligible employees. The document specifies that Batteries Plus Bulbs's contribution to this plan is a discretionary amount. This means that the company determines the contribution amount each year.

For the years ending December 31, 2024 and 2023, Batteries Plus Bulbs's contributions to the profit-sharing plan were approximately $1,533 and $1,538 respectively (in thousands). This demonstrates that while the contribution is discretionary, the company has consistently contributed a significant amount to the plan in recent years.

As a prospective franchisee, it is important to understand that the discretionary nature of the contribution means there is no guarantee of a specific contribution amount in the future. This could impact the benefits received by employees of a Batteries Plus Bulbs franchise. Franchisees should inquire about the factors that Batteries Plus Bulbs considers when determining the annual contribution amount and whether there are any plans to change the contribution policy in the future.