What are the curable defaults that could lead to termination of a Batteries Plus Bulbs Franchise Agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement(1) | Summary(1) |
|---|---|---|
| a. Length of the franchise term | Section 3; Section 3 of Multiple Unit Franchise Agreement | Franchise Agreement: 10 years. Multiple Unit Franchise Agreement: Ends on last day of Development Schedule. |
| b. Renewal or extension | Section 3 | If you are in good standing, you can renew the Franchise |
| of the term | Agreement for one additional 10 year term. | |
| c. Requirements for you to renew or extend | Section 3 | Provide advance notice, comply with current Franchise Agreement, you and your Store Manager satisfactorily complete any new/refresher training programs, you and your Principal Owners must meet current managerial, financial and business standards, sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, pay renewal fee and Omni-Channel access renewal fee, and sign a general release of claims. |
| d. Termination by you | Section 17 | If you comply with the Franchise Agreement, and we fail to cure a material provision within 60 days after written notice. |
| e. Termination by us | Not Applicable | |
| without cause | ||
| f. Termination by us with cause | Section 16; Section 13 of Multiple Unit Franchise Agreement | We may terminate the Franchise Agreement and Multiple Unit Franchise Agreement only if you default. |
| Provision | Section in Agreement(1) Summary(1) | |
| g. “Cause” defined – curable defaults | Sections 16(B) and (C); Section 13(A) of Multiple Unit Franchise Agreement Franchise Agreement: You have 30 days to cure failure to open Store when required, failure to complete training, failure to comply with System standards, fail to renew or maintain Store lease, breach under another Batteries Plus franchise agreement, and a violation of any material provision of the Agreement. You have 10 days to cure a failure to pay amounts due us or any creditors. Multiple Unit Franchise Agreement: You have 30 days to cure failure to meet development requirements, failure to comply with this Agreement or the Franchise Agreement or you terminate a franchise Agreement without cause, and failure to comply with any requirements in the Operations Manual. You have 10 days to cure a failure to pay amounts due us or any creditors. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, there are specific defaults that can be cured, allowing a franchisee to avoid termination of their Franchise Agreement. For a standard Franchise Agreement, a franchisee has 30 days to cure defaults such as failure to open the store when required, failure to complete training, failure to comply with system standards, failure to renew or maintain the store lease, breach under another Batteries Plus franchise agreement, and a violation of any material provision of the agreement. A shorter cure period of 10 days is provided for failure to pay amounts due to Batteries Plus Bulbs or any creditors.
For a Multiple Unit Franchise Agreement, a franchisee has 30 days to cure failure to meet development requirements, failure to comply with the agreement or the Franchise Agreement, terminating a franchise agreement without cause, and failure to comply with any requirements in the Operations Manual. Similar to the standard agreement, a 10-day cure period applies to failure to pay amounts due to Batteries Plus Bulbs or any creditors.
It is important for prospective Batteries Plus Bulbs franchisees to understand these curable defaults and the associated cure periods, as failure to cure within the specified timeframe can lead to termination of the franchise agreement. Franchisees should also note the differences in curable defaults between the standard Franchise Agreement and the Multiple Unit Franchise Agreement, depending on the scope of their franchise operation.