What happens to unspent NMF Fees for Batteries Plus Bulbs at the end of a fiscal year?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, any National Marketing Fund (NMF) fees that are not spent during a fiscal year will be carried over for use in future years. This means that the funds contributed by franchisees through the NMF fee, which is 1% of the store's net revenues, are accumulated and available for marketing and advertising initiatives in subsequent periods. Batteries Plus Bulbs may also make loans to the NMF Fund with reasonable interest to cover deficits or invest surplus funds for future use.

This policy ensures that marketing funds are not lost at the end of each year and can be strategically utilized over time. Batteries Plus Bulbs retains control over how the NMF funds are spent, with the goal of promoting the Batteries Plus Bulbs brand and supporting franchisees through various advertising and marketing efforts. Franchisees can request an annual unaudited statement detailing the receipts and disbursements of the NMF Fund, providing transparency in how the funds are managed.

For a prospective Batteries Plus Bulbs franchisee, this carry-over provision offers some assurance that their contributions to the NMF are not immediately spent and forgotten. The funds can be used for longer-term marketing strategies or to address specific needs as they arise. However, franchisees should also note that Batteries Plus Bulbs is not required to spend any particular amount on marketing in their specific area, and the franchisor determines the use of the NMF funds. The franchisee is required to pay the NMF fee, and Batteries Plus Bulbs-owned stores also contribute to the fund on the same basis as franchisees.