Does the Batteries Plus Bulbs Franchisor have the right to administrate the System in any manner?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor (for itself and its affiliates) retains the right: (1) to itself own and operate, and to grant other persons the right to own and operate, Batteries Plus® stores at locations outside the Designated Area, who may offer products and services within the Designated Area, and on conditions as Franchisor deems appropriate; (2) to sell within and outside the Designated Area the products and services authorized for sale at Batteries Plus® stores under trademarks and service marks other than the Licensed Marks through similar or dissimilar channels of distribution and pursuant to conditions Franchisor deems appropriate; (3) to sell the products and services authorized for sale at Batteries Plus® stores under the Licensed Marks through dissimilar channels of distribution (i.e., other than the operation of full-service retail Batteries Plus® stores), including by electronic means such as the Internet and by websites established by Franchisor, and pursuant to conditions Franchisor deems appropriate within and outside the Designated Area; and (4) to advertise the System on the Internet (or any other existing or future form of electronic or digital commerce) and to create, operate, maintain and modify, or discontinue the use of a website using the Licensed Marks.
Such suppliers (including Franchisor and/or its affiliates) may obtain a security interest in products sold to Franchisee.
Franchisee cannot alter the premises or appearance of the Store, or make any unapproved replacements of or alterations to the fixtures, equipment, furniture or signs of the Store without Franchisor's prior written approval. Franchisor may, in its discretion and at Franchisee's sole expense, correct any alterations to the Store not previously approved by Franchisor.
Franchisee agrees that it will not, without Franchisor's prior written approval, offer at the Store any products or services not then authorized by Franchisor for Batteries Plus® stores, nor will the Store or the premises which it occupies be used for any purpose other than the operation of a Batteries Plus® store in compliance with this Agreement.
Franchisor will provide on loan to Franchisee, during the term of this Agreement, electronic (internet) access to an Operations Manual, which may include the Franchise Administration Manual and Store Manual, and other handbooks, manuals and written materials (collectively, the "Operations Manual") for Batteries Plus® stores. The Operations Manual will contain mandatory and suggested specifications, standards and operating procedures that Franchisor develops for Batteries Plus® stores and information relating to other obligations of Franchisee. Any required specifications, standards and operating procedures exist to protect Franchisor's interests in the System and the Licensed Marks and to create a uniform customer experience, and not for the purpose of establishing
Franchisor will, at its discretion, determine the content and use of a Batteries Plus® website and intranet system and will establish rules under which franchisees may or will participate.
Franchisor has developed an inventory management assistance program under which Franchisor offers franchisees assistance with inventory management ("Inventory Planning as a Service Program"). Franchisee (or, if applicable, Franchisee's transferee) must participate in the Inventory Planning as a Service Program during the first twelve (12) months of Store operations following: (1) the date the Store opens; (2) the renewal of this Agreement (if not meeting Franchisor's then-current minimum in-stock requirements); or (3) the transfer of the Franchise, unless waived by Franchisor. Franchisee must pay Franchisor (or Franchisor's affiliate) the then-current fees for such assistance. If Franchisee is in default of the terms of this Agreement, Franchisor may require that Franchisee participate in the Inventory Planning as a Service Program for up twelve (12) months as a condition for curing the default.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the Franchisor maintains significant control over the System. Batteries Plus Bulbs retains rights to operate and grant others the right to operate stores outside a franchisee’s designated area. They can also sell approved products and services under different trademarks through various distribution channels, including online. Batteries Plus Bulbs also has the right to advertise the System on the Internet and manage the brand's website.
Batteries Plus Bulbs franchisees must adhere to approved products and suppliers, which the Franchisor can modify. Franchisees need written approval for store alterations and cannot offer unauthorized products or services. The Franchisor also provides an Operations Manual with mandatory specifications and operating procedures to protect the System and Licensed Marks, ensuring a consistent customer experience.
Furthermore, Batteries Plus Bulbs determines the content and use of the Batteries Plus Bulbs website and intranet system, setting rules for franchisee participation. The Franchisor also offers an inventory management assistance program that franchisees may be required to participate in, especially during the initial months of operation, upon renewal (if not meeting minimum stock requirements), or after a franchise transfer. These stipulations ensure Batteries Plus Bulbs maintains brand consistency and operational standards across all franchise locations.