factual

When is the Initial Franchise Fee for a Batteries Plus Bulbs franchise payable?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will pay Franchisor an "Initial Franchise Fee" described on Exhibit A.

The Initial Franchise Fee is payable when Franchisee signs this Agreement.

The Initial Franchise Fee is fully earned by Franchisor when Franchisor signs this Agreement and is nonrefundable.

Source: Item 22 — Contracts (FDD page 80)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the initial franchise fee is payable when the Franchise Agreement is signed. The FDD specifies that the initial franchise fee is outlined in Exhibit A of the franchise agreement. Once Batteries Plus Bulbs signs the agreement, the initial franchise fee is considered fully earned and is nonrefundable.

For prospective franchisees, this means that the initial franchise fee must be paid upfront when committing to the franchise. This fee grants the franchisee the right to operate a Batteries Plus Bulbs store under the company's brand and system. Because the fee is nonrefundable once Batteries Plus Bulbs signs the agreement, franchisees should carefully consider their decision before signing.

This payment structure is typical in the franchise industry, where initial fees compensate the franchisor for granting the franchise rights, providing initial training, and offering support to get the new location started. Franchisees should ensure they have secured financing and are fully prepared to proceed before signing the agreement and paying the initial franchise fee to Batteries Plus Bulbs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.