factual

When does a Batteries Plus Bulbs franchisee pay the fee mentioned in section (8)?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

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 support per 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 | |-----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Annual Conference or Regional Meeting Fee | Varies, currently $0 to $1,500 per person per event plus lodging, meals and travel expenses | Registration billed 6 months before convention | May increase up to 10% each calendar year. Applies only if we schedule an annual conference or regional meeting. See Item 11 | | Annual Conference or Regional Meeting Non Attendance Fee | Currently $0 to $2,000 per event | When incurred | If you fail to attend an annual convention or regional meeting, you must pay a non attendance fee of $2,000 per active Franchise Agreement with a cap of $10,000 for each franchisee owner group. May increase up to 10% each calendar year. | | Payments to Ascent | Will vary | When incurred | See Item 8 | | Relating to Products | | | | | Purchased Through Supply | | | | | Chain Program | | | | | Optional Resale Marketing Assistance Fee | Currently, $1,200 for a Launch Fee and $7,500 for a Resale Marketing Fee | Launch Fee is payable when you engage with the program; Resale Marketing Fee is payable when Store is sold | See Note 14 |

Notes:

  • (1) Except where otherwise noted, all fees are payable to us, are non-refundable, and are uniformly imposed.
  • (2) "Net Revenues" generally means the aggregate amount of all sales of goods and services (including service charges in lieu of gratuity), whether for cash, on credit or otherwise, made or provided in connection with the Store, but excluding taxes paid or accrued by you.
    • If you begin operating the Store by offering commercial sales activities after you successfully complete commercial sales training, including soliciting and servicing commercial accounts, by December 30, 2025, we will waive up to $27,500 of Royalty and Service Fees for the 12-month period after you begin retail sales activities (i.e., by opening your brick and mortar Store). You must pay the Royalty and Service Fee on any Net Revenues incurred before opening your brick and mortar Store. In addition, if you achieve at least $550,000 in Net Revenues during such initial 12 month period, we will waive up to $27,500 of Royalty and Service Fees for the subsequent 12-month period as well.
  • (3) We have elected, at our option, to periodically provide to select franchisees that joined the System before April 2011 and met certain other conditions a rebate of a portion of the Royalty and Service Fees in excess of 4% of Net Revenues. These franchisees generally include multi-unit franchisees, each of which satisfy certain minimum cumulative annual Net Revenues or certain minimum average annual unit Net Revenues, and other franchisees that satisfy certain minimum average

annual unit Net Revenues. For calendar year 2025, multi-Store franchisees must satisfy either the minimum annual cumulative Net Revenue amount of $13,537,157 or the minimum average annual unit Net Revenues of $2,256,192; and single Store franchisees must satisfy the minimum annual Net Revenue of $2,632,225.

Source: Item 6 — Other Fees (FDD pages 18–24)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Item 6 outlines various 'Other Fees' franchisees may incur. Several fees are payable monthly, such as the Software Support fee, currently at $472 per month, Omni-Channel Maintenance Fees, currently at $200 per month, Avalara Avatax Service Fee, currently at $26 per month, Payment Gateway Fee, currently at $22 per month, Salesforce.com CRM Fee, currently at $50 per month, Managed Security Services (PCI Compliance) Program Fee, currently at $170 per month, Optional Commercial as a Service, currently at $1,785 per month, New Store Commercial Support, currently at $1,150 per month, and Inventory Planning as a Service, currently at $100 per month. These fees are subject to change, potentially increasing up to 10% each calendar year or if third-party costs increase.

Other fees are due at different times based on specific circumstances. For instance, Audit fees are due 30 days after billing, but only if an audit reveals an understatement of at least 2% of Net Revenues for any month. Interest Expenses are due when incurred if Royalty and Service Fees, NMF Fees, Digital Marketing Fees, or other amounts owed to Batteries Plus Bulbs or its affiliates are not paid on time. Management Fees, up to $500 per day plus costs, are due when incurred if the franchisee defaults on the Franchise Agreement and Batteries Plus Bulbs elects to operate the store until the default is resolved. Insurance costs are payable before opening the store, and franchisees must reimburse Batteries Plus Bulbs promptly if they fail to maintain the required insurance.

Additional fees include Regional Workshops and Supplemental and Refresher Training, which vary and are due when incurred, and the Annual Conference or Regional Meeting Fee, which varies from $0 to $1,500 per person per event plus expenses and is billed 6 months before the convention. A Non-Attendance Fee, ranging from $0 to $2,000, is incurred if a franchisee fails to attend these events. The initial Minimum Store Promotion Requirement of $20,000 is due when the physical store opens. Furthermore, if relocating a store, a New Store Marketing Campaign fee of up to $6,000 may be required. The Optional Resale Marketing Assistance Fee includes a $1,200 Launch Fee payable upon engaging with the program and a $7,500 Resale Marketing Fee payable when the store is sold.

Payments to Ascent, mentioned in the table, will vary and are due when incurred, as detailed in Item 8 of the FDD. This item likely contains specific information regarding the fees associated with Ascent, which prospective franchisees should review carefully to understand the nature and timing of these payments. Understanding the due dates and conditions for each fee is crucial for managing the financial obligations of a Batteries Plus Bulbs franchise.

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.