What other fees must a Batteries Plus Bulbs franchisee pay?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6*
OTHER FEES
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law | When due | Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries or our affiliates. |
| Management Fee | Up to $500 per day plus cost and overhead | When due | Payable if you are in default under the Franchise Agreement and we elect to operate the Store until the default has been cured. |
| Insurance | Cost of insurance | Payable before opening | If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges. |
| Software Support | Varies, currently $472 per month | Payable monthly | May increase up to 10% each calendar year. See Item 11 |
| Omni-Channel Maintenance Fees | Then-current fee as described in the Operations Manual, currently $200 per month. | Payable monthly | May increase up to 10% each calendar year. See Note 11and Item12 |
| Omni-Channel Program Fees | Varies, includes administrative fee on certain product and reimbursement of key account, e-commerce and other program expenses and services provided to you | Will vary depending on fee | May increase up to 10% each calendar year. See Note 11 and Item 12 |
| Avalara Avatax Service Fee | Varies, currently $26 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
| Payment Gateway Fee | Varies, currently $22 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Salesforce.com CRM Fee | Varies, currently $50 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Managed Security Services (PCI Compliance) Program Fee | Currently $170 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee See Item 11 |
| Regional Workshops and Supplemental and Refresher Training | Varies, currently $0 to $1,500 per day | When incurred | May increase up to 10% each calendar year. See Item 11 |
| Optional Commercial as a Service | Currently $1,785 per month for approximately 40 hours of supportper month. | Payable monthly | May increase up to 10% each calendar year. See Note 12 |
| New Store Commercial Support | Currently $1,150 per month | Payable monthly | May increase up to 10% each calendar year. See Note 12 |
| Inventory Planning as a Service | Currently $100 per month | Payable monthly | May increase up to 10% each calendar year. See Note 13 |
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law | When due | Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries or our affiliates. |
| Management Fee | Up to $500 per day plus cost and overhead | When due | Payable if you are in default under the Franchise Agreement and we elect to operate the Store until the default has been cured. |
| Insurance | Cost of insurance | Payable before opening | If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges. |
| Software Support | Varies, currently $472 per month | Payable monthly | May increase up to 10% each calendar year. See Item 11 |
| Omni-Channel Maintenance Fees | Then-current fee as described in the Operations Manual, currently $200 per month. | Payable monthly | May increase up to 10% each calendar year. See Note 11 and Item 12 |
| Omni-Channel Program Fees | Varies, includes administrative fee on certain product and reimbursement of key account, e-commerce and other program expenses and services provided to you | Will vary depending on fee | May increase up to 10% each calendar year. See Note 11 and Item 12 |
| Avalara Avatax Service Fee | Varies, currently $26 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
| ------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Payment Gateway Fee | Varies, currently $22 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Salesforce.com CRM Fee | Varies, currently $50 per month | Payable monthly | May increase if our third party costs increase; any portion of the fee attributable to our overhead or administrative costs will not exceed 10% of the total fee |
| Managed Security Services (PCI Compliance) Program Fee | Currently $170 per month | Payable monthly | May increase if our third party costs increase; |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, franchisees may incur various other fees in addition to the initial franchise fee, royalty fees, and marketing fees. These additional fees cover a range of services, compliance measures, and potential default situations. For instance, if an audit reveals an understatement of at least 2% of net revenues for any month, the franchisee is responsible for the cost of the audit plus 1½% interest per month from the due date. Interest expenses may also accrue, at the lesser of 18% per year or the maximum rate permitted by law, if payments for royalties, service fees, NMF fees, digital marketing fees, or other amounts owed to Batteries Plus Bulbs or its affiliates are not made on time.
Further, Batteries Plus Bulbs franchisees may be charged a management fee of up to $500 per day, plus costs and overhead, if they default under the Franchise Agreement and Batteries Plus Bulbs elects to operate the store until the default is resolved. Franchisees are also responsible for insurance costs, and failure to maintain required insurance may result in Batteries Plus Bulbs obtaining insurance on their behalf, with the franchisee required to promptly reimburse the franchisor, including any late charges. Ongoing fees include a software support fee, which is currently $472 per month, and Omni-Channel Maintenance Fees, currently at $200 per month, both of which may increase up to 10% each calendar year. Additional fees include Omni-Channel Program Fees, Avalara Avatax Service Fee (currently $26 per month), Payment Gateway Fee (currently $22 per month), Salesforce.com CRM Fee (currently $50 per month), and a Managed Security Services (PCI Compliance) Program Fee (currently $170 per month). These monthly fees may increase if third-party costs increase, but Batteries Plus Bulbs overhead or administrative costs will not exceed 10% of the total fee.
Batteries Plus Bulbs franchisees may also encounter fees for Regional Workshops and Supplemental and Refresher Training, which currently range from $0 to $1,500 per day and can increase up to 10% each calendar year. Optional services such as Commercial as a Service are available for $1,785 per month, while New Store Commercial Support costs $1,150 per month, and Inventory Planning as a Service is $100 per month; these may also increase by up to 10% annually. Additional fees include the Annual Conference or Regional Meeting Fee, ranging from $0 to $1,500 per person per event plus associated expenses, and a Non-Attendance Fee of $0 to $2,000 per event if attendance is missed. Lastly, there is an Optional Resale Marketing Assistance Fee of $1,200 for a Launch Fee and $7,500 for a Resale Marketing Fee.
Prospective Batteries Plus Bulbs franchisees should carefully review Item 6 and related items in the 2025 Franchise Disclosure Document and seek clarification from the franchisor regarding any uncertainties or concerns about these additional fees. Understanding the full scope of potential expenses is crucial for assessing the financial viability of the franchise opportunity.