How is the Digital Marketing Contribution for Batteries Plus Bulbs determined in the future?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue of $2,632,225.
- (4) We will determine future Digital Marketing and Local Media Program Contributions, provided that the Digital Marketing Contribution will not exceed the greater of 3% of Net Revenues or the "Minimum Store Promotion Requirement."
- (5) The term "Minimum Store Promotion Requirement" means: (i) during the first calendar year (or portion thereof) following the Store opening date, a pro rata amount of $20,000 based upon the number of weeks during the calendar year in which the Store was in operation; and (ii) during the first full and each subsequent calendar year during the term of the Franchise Agreement, the greater of 4% of your Store's Net Revenues (based on Store Net Revenues for the previous calendar year) or $20,000. When the physical Store opens for retail sales activities, you will pay us $20,000 as your initial Minimum Store Promotion Requirement and we will apply those funds towards your Digital Marketing and Local Media Program contributions. Once such amounts are used, you will pay your Digital Marketing and Local Media Program contributions monthly. If you do not satisfy the Minimum Store Promotion Requirement for a calendar year, you must deposit with us the difference between the amount of the Minimum Store Promotion Requirement and the amount you actually spent during the calendar year on qualifying advertising or promotional activities. Franchisor will deposit that amount in the NMF Fund (see Item 11
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the franchisor will determine future Digital Marketing and Local Media Program Contributions. The Digital Marketing Contribution will not exceed the greater of 3% of Net Revenues or the "Minimum Store Promotion Requirement."
The "Minimum Store Promotion Requirement" is defined as follows: During the first calendar year (or portion thereof) following the store opening date, it's a pro rata amount of $20,000 based upon the number of weeks the store was in operation. In the first full and each subsequent calendar year during the term of the Franchise Agreement, it is the greater of 4% of your store's Net Revenues (based on store Net Revenues for the previous calendar year) or $20,000.
Upon opening the physical store for retail sales, the franchisee will pay Batteries Plus Bulbs $20,000 as the initial Minimum Store Promotion Requirement, which will be applied towards the Digital Marketing and Local Media Program contributions. Once these funds are exhausted, the franchisee will pay the Digital Marketing and Local Media Program contributions monthly. If the Minimum Store Promotion Requirement is not met for a calendar year, the franchisee must deposit the difference between the required amount and the amount actually spent on qualifying advertising or promotional activities with Batteries Plus Bulbs. The franchisor will then deposit that amount in the NMF Fund.