What does the estimated initial investment for a Batteries Plus Bulbs franchise cover?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the estimated initial investment for a single store franchise covers expenses incurred prior to site build-out and those during and after site build-out. The total estimated initial investment ranges from $262,646 to $496,996, encompassing pre-opening costs and expenses during the first three months of store operations. A prospective franchisee should carefully review these figures with a business advisor. Note 1 of Item 7 indicates that the table reflects the estimated initial investment for a single store offering batteries, light bulbs, related products, and designated services, assuming the franchisee will lease the premises. The initial investment is divided into two sections: costs to begin commercial sales activities and costs to build out, open the store, and begin retail sales. Franchisees must have a minimum of $100,000 in personal cash or other liquid assets for each store. These are estimates, and Batteries Plus Bulbs cannot guarantee that franchisees will not have additional expenses.

The initial investment includes a variety of expenses. Prior to site build-out, these include the initial franchise fee ($15,000 to $44,500), travel and living expenses during training ($500 to $2,900), and new store commercial support for three months ($0 to $3,450). It also covers the retail management system ($38,986), an omni-channel access fee ($10,000), miscellaneous pre-opening expenses such as permits and legal fees ($1,800 to $5,000), insurance premiums for three months ($1,200 to $5,000), a delivery vehicle ($1,000 to $18,500), and additional funds for three months ($11,000 to $17,000).

During and after site build-out, the investment includes a new store opening hardware kit ($7,000 to $10,000), traffic equipment and software ($860), a new store marketing campaign contribution ($5,000 to $6,000), and a minimum store promotion requirement ($20,000). Rent, including the security deposit and three months' rent, ranges from $8,000 to $19,000, while leasehold improvements can range from $0 to $116,000. Equipment and fixtures are estimated at $33,000 to $39,000, and signage costs $7,500 to $16,000. Inventory ranges from $57,500 to $74,000, miscellaneous supplies cost $4,300 to $5,800, and additional funds for three months are estimated at $40,000 to $45,000.

Several factors can influence these costs. The size and location of the store, local economic conditions, and the franchisee's adherence to Batteries Plus Bulbs's systems all play a role. The cost of leasehold improvements can vary based on the condition of the premises and negotiations with the landlord. Equipment and signage costs may also fluctuate depending on the store site's characteristics and shipping distances from suppliers. The estimate also assumes no sales of product inventory during the first three months, so it does not reflect revenue from sales or variable costs associated with replenishing inventory.