What Batteries Plus Bulbs Disclosure Document Items relate to pre-opening purchases/leases?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
To ensure a uniform image and uniform quality of products and services throughout the Batteries Plus® system, you must maintain and comply with our quality standards.
Supply Chain Program for Batteries, Light Bulbs, Repair Components and Related Products and Services
You must purchase for sale at your Store private label and branded batteries, light bulbs, repair components and related products as well as services from us, our designees or from other suppliers we approve. We (including our affiliate, Ascent) or our designees may be the designated or sole source of supply for certain batteries, light bulbs, repair components and related products as well as services. Ascent currently is the sole source of supply for certain batteries, light bulbs, repair components and related products as well as certain services. In addition, for certain device services that you cannot perform at the Store, including the repair and replacement of screens and batteries, you must send the device to Ascent for repair.
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, several items pertain to pre-opening purchases and leases. Item 7 discusses the estimated initial investment, which includes costs for initial franchise fees, travel and living expenses during training, computer systems, signage, insurance, licenses, permits, working capital, and initial inventory. These are all essential for setting up the franchise before opening. Item 8 outlines restrictions on sources of products and services, stating that franchisees must purchase private label and branded batteries, light bulbs, repair components, and related products from Batteries Plus Bulbs, its designees, or approved suppliers to ensure uniform quality throughout the system. This dictates where franchisees must source their initial and ongoing inventory.
Item 11 details Batteries Plus Bulbs' obligations, including providing pre-opening services like site selection assistance, store layout and design specifications, and a list of approved suppliers for fixtures, equipment, and initial inventory. It also covers training programs for the franchisee and their staff. Item 11 further specifies the franchisee's obligations, such as finding a suitable location, obtaining necessary permits and licenses, purchasing or leasing the premises, and purchasing initial inventory and equipment. These actions and purchases are critical for preparing the store for its grand opening.
Item 13 discusses intellectual property, stating that franchisees must use approved signage and marketing materials, which involve initial costs. Item 22 includes details about store alterations, stating that franchisees cannot alter the premises or appearance of the store without prior written approval from Batteries Plus Bulbs. This ensures that any pre-opening modifications or improvements to the leased space adhere to the franchisor's standards. Therefore, Items 7, 8, 11, 13 and 22 of the Batteries Plus Bulbs FDD are relevant to pre-opening purchases and leases, providing a comprehensive overview of the financial and operational requirements for establishing a new franchise.