When are the fees for an individual Batteries Plus Bulbs franchise agreement payable?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus enters into individual and multiple-unit franchise agreements. Individual franchise agreements grant the individual the right to open and operate a franchise store in the franchisee's individual territory. Multiple-unit franchise agreements grant the franchisee the right to establish and own a specified number of Batteries Plus stores within a defined geographic area pursuant to a development schedule. The fees for the individual franchise agreement and a portion of the fees for the multiple-unit franchise agreement are payable upon execution of the agreement and are nonrefundable. The remaining fees for multiple-unit franchise agreements are payable upon execution of the franchise agreement for each store developed pursuant to the multiple unit franchise agreement.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the fees for an individual franchise agreement are due upon the execution of the agreement. These fees are nonrefundable. This means that a prospective franchisee must pay the required fees at the time they sign the franchise agreement with Batteries Plus Bulbs.
For a prospective franchisee, this indicates that the initial investment will be required upfront. The nonrefundable nature of the fees means that if the franchisee later decides not to proceed with opening the store, or if the agreement is terminated, the initial fees will not be returned. This is a standard practice in franchising, as these initial fees typically cover the franchisor's costs for training, site selection assistance, and other initial support services.
It's important for potential Batteries Plus Bulbs franchisees to carefully review the franchise agreement and understand all the terms and conditions before signing, as well as to ensure they have the necessary capital available to cover these upfront fees. Additionally, prospective franchisees should inquire about what specific services and support are provided by Batteries Plus Bulbs in exchange for these nonrefundable fees to fully understand the value they are receiving.