What is the definition of 'Retail Net Revenue' for a Batteries Plus Bulbs franchise, and what revenue is excluded?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Retail Net Revenue" is the Store's Net Revenue attributable to retail sales from a physical Store, excluding any Commercial Net Revenue (which may include a portion of Device Repair Net Revenue, Key Fob Net Revenue and Auto Net Revenue that is not attributable to a commerical account).
Source: Item 19 — Financial Performance Representations (FDD pages 53–70)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, 'Retail Net Revenue' is defined as the store's net revenue specifically from retail sales occurring at a physical store location. This excludes any revenue categorized as 'Commercial Net Revenue'.
Commercial Net Revenue, as defined in the FDD, encompasses all of the store's net revenue derived from commercial accounts. This may include revenue from device repair, key fob services, and auto battery and bulb sales when those sales are attributable to commercial clients rather than individual retail customers. Therefore, even if a portion of device repair, key fob, or auto-related revenue is generated, it is not considered 'Retail Net Revenue' if it comes from a commercial account.
In practical terms, this distinction is important for Batteries Plus Bulbs franchisees because the FDD may present financial performance data broken down by revenue type (retail vs. commercial). Understanding the difference allows prospective franchisees to better analyze the potential revenue streams and tailor their business strategies accordingly. For example, a franchisee might focus more on building commercial accounts in their territory or, conversely, concentrate on maximizing retail sales through in-store promotions and customer service.