How did Batteries Plus Bulbs fund the acquisition of the four franchised stores in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
subject to the achievement of specific operational targets by the repurchased stores, subsequent to the acquisition. If achieved, $600 of the earnout liability will be paid in 2025 and $400 will be paid in 2026. The contingent earnout liabilities are recorded with the notes payablestore repurchase on the consolidated balance sheets.
During 2023, Batteries Plus acquired the operating assets of four franchised stores using available cash on-hand. Batteries Plus now op
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the company acquired four franchised stores in 2023. The document states that Batteries Plus Bulbs used available cash on-hand to fund these acquisitions.
The total purchase price for these four stores was $1,991 (in thousands). The allocation of this purchase price was based on the fair value of the assets acquired and liabilities assumed. This included $495 allocated to inventory, $216 to property and equipment, $3 to other assets, and $1,423 to goodwill. There was also a reduction of ($146) related to current liabilities.
This indicates that Batteries Plus Bulbs had sufficient cash reserves to purchase these existing franchise locations outright. For a prospective franchisee, this demonstrates the financial stability of Batteries Plus Bulbs as a franchisor. It also shows that Batteries Plus Bulbs is willing to invest in acquiring existing locations, which could potentially benefit franchisees if Batteries Plus Bulbs decides to acquire their stores in the future.