What is the estimated useful life for vehicles at Batteries Plus Bulbs for depreciation purposes?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
e collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
Merchandise Inventories
Inventories, which primarily consist of merchandise held for resale, are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (Ascent) or average-cost (Batteries Plus operated stores) method.
Notes Receivable
Notes receivable are stated at the amount the Company expects to collect from outstanding balances. The Company assesses the credit history of franchises having outstanding balances along with its current relationship with them. Amounts are written off when receivables are determined to be uncollectible. In 2023, the Company recorded a charge of $505. Interest income on notes receivable is recognized using the effective-interest
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the estimated useful life for vehicles is five years for depreciation purposes. Batteries Plus Bulbs uses the straight-line method to calculate depreciation.
For a prospective franchisee, this means that if you purchase a vehicle for use in your Batteries Plus Bulbs business, you will depreciate it over a five-year period using the straight-line method. The straight-line method means that you will deduct an equal amount of depreciation expense each year over the vehicle's useful life. This depreciation can be used to offset taxable income.
In addition to vehicles, Batteries Plus Bulbs depreciates other property and equipment, such as furniture, fixtures, and equipment, over three to ten years; leasehold improvements over five to ten years; and software over three to seven years. Internal-use software is amortized straight-line over seven years beginning when the asset is placed in service.