What is the franchisee's obligation regarding the assignment of rights and obligations respecting Qualified E-Commerce Transactions from Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we agree to assign to you (and you must accept) all rights and obligations respecting those e-commerce transactions (each a "Qualified E-Commerce Transaction") in which: (1) a customer purchases through our Batteries Plus® website or other online portal any batteries, light bulbs and/or related products and accessories or device repair or other services; (2) the products will be shipped to the customer from our or our affiliate's warehouse or from a designated third party warehouse or, if applicable, we or our affiliate performs the services requested, and (3) the customer: (a) selects your Store at which the customer will pick up the product(s) or desires to conduct business with you, or (b) does not select a specific franchisee or store but provides an address to which the products (or device for which services are performed) will be shipped which is within the lesser of a 20 mile radius of your Store location or an area encompassing a commercially reasonable estimate of a current population of 250,000 (the "E-Commerce Territory"). If a proposed e-commerce transaction falls within the E-Commerce Territory of more than one franchisee, we will assign the transaction to the franchisee whose Batteries Plus® store is closest to the address provided by the customer.
Source: Item 12 — Territory (FDD pages 43–46)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, franchisees are obligated to accept the assignment of rights and obligations related to e-commerce transactions that fall within a defined scope. Specifically, Batteries Plus Bulbs will assign these rights and obligations to the franchisee, and the franchisee must accept them. These "Qualified E-Commerce Transactions" occur when a customer purchases batteries, light bulbs, related products, accessories, or device repair services through Batteries Plus Bulbs' website or online portal.
The transactions must also meet certain shipping and service criteria. The products must be shipped from Batteries Plus Bulbs' or its affiliate's warehouse, or from a designated third-party warehouse, or the services are performed by Batteries Plus Bulbs or its affiliate. Additionally, the customer must either select the franchisee's store for product pickup or indicate a desire to conduct business with the franchisee, or the customer provides a shipping address within a specific radius of the franchisee's store. This radius is the lesser of 20 miles or an area encompassing a commercially reasonable estimate of a current population of 250,000, defining what Batteries Plus Bulbs terms the "E-Commerce Territory."
If an e-commerce transaction falls within the E-Commerce Territory of multiple franchisees, Batteries Plus Bulbs will assign the transaction to the franchisee whose store is closest to the customer's provided address. This ensures that franchisees benefit from online sales within their local area, but it also means they must be prepared to fulfill online orders and provide services initiated through Batteries Plus Bulbs' online platforms. This obligation is a condition of the franchise agreement, indicating its importance to Batteries Plus Bulbs' overall business model.