What is a Batteries Plus Bulbs franchisee required to do regarding electronic transfer of funds?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will direct how the digital marketing contribution is spent, and Franchisee will pay such amount on or before the 10th day of each month directly to Franchisor.
Franchisor also will contribute to the Digital Marketing and Local Media Program for each Batteries Plus® store that it operates in the United States at the same percentage or other contribution rate as a majority of Batteries Plus® franchisees must contribute to the Digital Marketing and Local Media Program.
To the extent Franchisor directly receives Franchisee contributions respecting the Digital Marketing and Local Media Program, Franchisor will establish a separate account and manage such account.
Reasonable disbursements from any such account will be made solely to pay expenses Franchisor incurs in connection with digital marketing or future forms of electronic marketing activities respecting the System, including expenses related to marketing and lead generation and future forms of digital marketing or promotional tools or programs.
Any separate account established for the Digital Marketing and Local Media Program is not a trust or escrow account, and Franchisor has no fiduciary obligations regarding any such account.
Franchisor cannot ensure that any individual franchisee will benefit directly or on a pro rata basis from any such activity conducted through the Digital Marketing and Local Media Program.
Franchisor may spend in any fiscal year an amount greater or less than the aggregate contributions of Batteries Plus® stores to such account in that year.
Franchisor will determine the strategy, content, implementation and other aspects of the Digital Marketing and Local Media Program.
Upon written request, Franchisor will provide Franchisee an annual unaudited statement of the receipts and disbursements of any separate Digital Marketing and Local Media Program account for the most recent calendar year.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, franchisees are required to make digital marketing contributions, with payments due to Batteries Plus Bulbs by the 10th of each month. These payments are specifically for the Digital Marketing and Local Media Program. Batteries Plus Bulbs directs how these funds are spent. Batteries Plus Bulbs also contributes to this program at the same percentage or contribution rate as the majority of franchisees.
Batteries Plus Bulbs manages a separate account for these contributions and will use the funds to cover expenses related to digital marketing and electronic marketing activities for the Batteries Plus Bulbs system. These activities include marketing, lead generation, and promotional tools or programs. The FDD specifies that this account is not a trust or escrow account, and Batteries Plus Bulbs does not have fiduciary obligations regarding the account.
While franchisees are required to contribute to the Digital Marketing and Local Media Program, Batteries Plus Bulbs does not guarantee that any individual franchisee will directly or proportionally benefit from the activities funded by the program. Batteries Plus Bulbs has the authority to determine the strategy, content, and implementation of the Digital Marketing and Local Media Program. Upon written request, Batteries Plus Bulbs will provide franchisees with an annual unaudited statement of the receipts and disbursements for the Digital Marketing and Local Media Program account for the most recent calendar year.