factual

What must a Batteries Plus Bulbs franchisee do when the Franchise Agreement expires or terminates?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

18. FRANCHISEE OBLIGATIONS UPON TERMINATION

  • A. Post-Term Duties. If this Agreement expires or is terminated for any reason other than a termination as a result of a breach by Franchisor, Franchisee will:
      1. within ten (10) days after termination, pay all amounts due and owing to Franchisor or its affiliates, including all Royalty and Service Fees, Digital Marketing and Local Media Program contributions, NMF fees, and accrued interest due under this Agreement;
      1. discontinue using, and return to Franchisor by first class prepaid United States mail any hard copies of, the Operations Manuals and any other manuals, advertising materials, and all other printed materials relating to the operation of the Franchise;
      1. assign to Franchisor or, at Franchisor's discretion, disconnect the telephone number for the Store. Franchisee acknowledges that Franchisor has the sole right to and interest in all telephone numbers and all electronic or other directory listings associated with the Licensed Marks, and Franchisee authorizes Franchisor, and appoints Franchisor as its attorney-in-fact, to direct the telephone company and all listing agencies to transfer such numbers and listings to Franchisor;
      1. remove from the Store premises all signs, posters, fixtures, decals, wall coverings and other materials that are distinctive of a Store or bear the name "Batteries Plus" or other Licensed Marks;
      1. comply with all post-termination obligations under the Software Access Agreement and the ProSource RMS Software Agreement, including the return of all materials relating to the Proprietary Software;
      1. take all necessary action to cancel all fictitious or assumed name or equivalent registrations relating to Franchisee's use of any of the Licensed Marks;
      1. immediately cease using Confidential Information in whatever format it may appear and return to Franchisor (or, at Franchisor's option, destroy or electronically delete) all electronic or hard-copy documents in Franchisee's possession that contain Confidential Information; and
      1. within ten (10) days after termination, pay Franchisor all future lost Royalty and Service Fees and NMF Fees if this Agreement is terminated due to Franchisee's breach of this Agreement; and
      1. comply with all other applicable provisions of this Agreement, including the non-compete provisions.

Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD page 47)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs FDD, if the Franchise Agreement expires or is terminated for any reason other than a termination resulting from a breach by Batteries Plus Bulbs, the franchisee has several obligations. Within ten days of termination, the franchisee must pay all outstanding amounts to Batteries Plus Bulbs or its affiliates, including royalties, service fees, digital marketing and local media program contributions, NMF fees, and accrued interest.

The franchisee must also discontinue using and return all copies of the Operations Manuals, advertising materials, and other printed materials related to the franchise operation. Additionally, the franchisee must assign or disconnect the store's telephone number at Batteries Plus Bulbs' discretion, understanding that Batteries Plus Bulbs retains all rights to telephone numbers and directory listings associated with the licensed marks. The franchisee is required to remove all signs, posters, fixtures, and other materials that identify the location as a Batteries Plus Bulbs store.

Furthermore, the franchisee must comply with post-termination obligations under the Software Access Agreement and the ProSource RMS Software Agreement, including returning all materials related to proprietary software. They must also cancel any fictitious or assumed name registrations related to the use of licensed marks and immediately stop using confidential information, returning or destroying all documents containing such information. If the termination is due to the franchisee's breach, they must pay all future lost royalty and service fees and NMF fees within ten days of termination. Finally, the franchisee must comply with all other applicable provisions of the agreement, including non-compete provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.