When is the insurance fee due for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law | When due | Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries or our affiliates. |
| Management Fee | Up to $500 per day plus cost and overhead | When due | Payable if you are in default under the Franchise Agreement and we elect to operate the Store until the default has been cured. |
| Insurance | Cost of insurance | Payable before opening | If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges. |
| Software Support | Varies, currently $472 per month | Payable monthly | May increase up to 10% each calendar year. See Item 11 |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the insurance fee, which covers the cost of insurance, is due before opening the Batteries Plus Bulbs store. This means a prospective franchisee must secure and pay for the required insurance coverage before commencing business operations.
Batteries Plus Bulbs requires franchisees to maintain adequate insurance coverage. If a franchisee fails to obtain and maintain the necessary insurance, Batteries Plus Bulbs has the right to obtain the insurance coverage themselves. In such cases, the franchisee is responsible for promptly reimbursing Batteries Plus Bulbs for the cost of the insurance, including any late charges incurred.
This policy ensures that all Batteries Plus Bulbs locations maintain continuous insurance coverage, protecting both the franchisee and the franchisor from potential liabilities and financial losses. It is a fairly standard practice in franchising to ensure brand-wide compliance with insurance requirements.