factual

What Batteries Plus Bulbs Disclosure Document Items cover the franchisee's fee obligations?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee pays Franchisor an assignment fee equal to fifty percent (50%) of Franchisor's then-current standard initial franchise fee applicable to new Batteries Plus® franchisees and, at Franchisor's request, pays Franchisor a prorated Omni-Channel Program access renewal fee;

Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, several items outline the fee obligations for a Batteries Plus Bulbs franchisee. Item 5 details the initial franchise fee, which ranges from $39,900 to $49,900, depending on the store type and location. This fee is generally non-refundable and compensates Batteries Plus Bulbs for granting the franchise. Item 6 outlines other fees, including royalty fees, which are 4.5% of Net Revenues, and brand fund contributions, which are 1% of Net Revenues. These ongoing fees support the Batteries Plus Bulbs brand and provide franchisees with continued support and resources.

Item 7 provides an estimate of the initial investment required to start a Batteries Plus Bulbs franchise, encompassing expenses like real estate, construction, inventory, and working capital. This estimate ranges from $233,850 to $542,800, offering prospective franchisees a comprehensive view of the financial commitment involved. Item 10 further clarifies the franchisee's obligations, referencing the franchise agreement and other related documents that detail specific responsibilities and requirements.

Additionally, Item 22, which covers contracts, mentions potential fees related to resale training for transferee-franchisees and assignment fees should a franchisee transfer their franchise. Specifically, the assignment fee is equal to fifty percent (50%) of Batteries Plus Bulbs' then-current standard initial franchise fee applicable to new Batteries Plus® franchisees. Understanding these various fee obligations is crucial for any prospective Batteries Plus Bulbs franchisee to accurately assess the financial implications and ensure they have sufficient capital to launch and sustain their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.