How does Batteries Plus Bulbs evaluate renewal options for leases?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the company evaluates lease renewal options at the commencement of the lease and on an ongoing basis. The decision to exercise these renewal options is at the company's sole discretion. Batteries Plus Bulbs includes renewal options in its expected lease terms when classifying leases and measuring lease liabilities if they are reasonably certain to be exercised.

This means that when a prospective Batteries Plus Bulbs franchisee is considering a location, the company assesses the likelihood of renewing the lease. This evaluation impacts how the lease is classified and how the lease liabilities are measured on the company's financial statements. The company considers factors that make it reasonably certain that the option will be exercised.

For a potential franchisee, this indicates that Batteries Plus Bulbs actively manages its lease obligations and considers future lease renewals in its financial planning. However, the ultimate decision to renew a lease remains with Batteries Plus Bulbs. Franchisees should discuss lease terms and renewal possibilities with Batteries Plus Bulbs to understand the potential long-term implications for their specific location.