What was the 'Depreciation' expense for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Merchandise sales | $ 288,296 | $ | 268,600 | |
|---|---|---|---|---|
| Cost of merchandise sold | 173,661 | 160,260 | ||
| Gross profit | 114,635 | 108,340 | ||
| Other operating income | ||||
| Franchise fees | 1,647 | 1,895 | ||
| Royalty fees | 23,377 | 23,305 | ||
| Supplier commissions | 7,940 | 8,201 | ||
| Marketing fund | 25,069 | 19,776 | ||
| Other fees | 9,256 | 8,962 | ||
| 67,289 | 62,139 | |||
| Operating expenses | ||||
| Selling and delivery | 12,494 | 11,435 | ||
| Occupancy | 11,047 | 10,130 | ||
| General and administrative | 90,186 | 86,987 | ||
| Advertising |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the depreciation expense for the company in 2023 was $5,328. This figure reflects the accounting recognition of the reduction in value of the company's assets due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense that impacts the company's net income.
For a prospective franchisee, understanding the depreciation expense is crucial as it provides insight into the capital expenditure requirements and the lifespan of assets within the Batteries Plus Bulbs business model. Higher depreciation expenses might indicate a need for more frequent asset replacements or upgrades, which could impact profitability. Conversely, lower depreciation expenses could suggest longer asset lifecycles, potentially reducing the need for frequent capital investments.
It's important to note that this depreciation expense reflects the company's overall financial performance and may not directly translate to the depreciation expense a franchisee might incur. A franchisee's depreciation expense will depend on their specific asset base, accounting methods, and other factors. Therefore, a prospective franchisee should consult with a financial advisor to understand the potential depreciation expenses for their specific Batteries Plus Bulbs franchise location.