What is included in the definition of 'Net Revenues' for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
D. "Net Revenues" means the aggregate amount of all sales of goods and services (including service charges in lieu of gratuity), whether for cash, on credit or otherwise, made or provided at or in connection with the Store, including off-premises sales and monies derived at or away from the Store. The term "Net Revenues" does not include: (1) any federal, state, municipal or other sales, value added or retailer's excise taxes paid or accrued by Franchisee; and (2) adjustments for net returns on salable goods and discounts allowed to customers on sales. Net Revenues will not be adjusted for uncollected accounts.
For purposes of the Royalty and Service Fee (as defined in Section 9(B) below), the sale is made at the earlier of delivery of the product or service, or receipt of payment.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, "Net Revenues" is defined as the total income from all goods and services sold at or related to the store. This includes cash sales, credit sales, off-premises sales, and any other money earned whether it's at the physical store location or elsewhere. Service charges that are in place of gratuity are also included in the calculation of Net Revenues.
However, the definition of "Net Revenues" for a Batteries Plus Bulbs franchise specifically excludes certain items. These exclusions include any federal, state, municipal, or other sales, value-added, or retailer's excise taxes that the franchisee pays or accrues. Additionally, adjustments for net returns on salable goods and discounts provided to customers are not included in the calculation of Net Revenues. It is important to note that Net Revenues will not be adjusted for uncollected accounts, meaning that even if a customer does not pay, the initial revenue from the sale is still included in the Net Revenues figure.
For the purpose of calculating the Royalty and Service Fee for a Batteries Plus Bulbs franchise, a sale is considered to have occurred at the earlier of two events: either when the product or service is delivered, or when payment is received. This means that Batteries Plus Bulbs franchisees must remit royalties on sales as soon as either of these two conditions are met, regardless of whether the payment has fully cleared or the service is fully completed. This definition is important because the franchisee's royalty and national marketing fund fees are based on a percentage of Net Revenues.