When is the interest expense 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. |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, interest expenses are due 'when due.' These expenses are incurred if a franchisee does not make timely payments for royalties, service fees, National Marketing Fund (NMF) fees, digital marketing fees, or any other amounts owed to Batteries Plus Bulbs or its affiliates. The interest charged will be the lesser of 18% per year or the maximum rate permitted by law.
This means that as a Batteries Plus Bulbs franchisee, you must ensure all payments are made on time to avoid incurring interest expenses. The due date for these other fees will vary. For example, the software support fee is due monthly, while the audit fee is due 30 days after billing.
Missing payment deadlines for fees like the Royalty and Service Fee, NMF Fee, or Digital Marketing Fee can trigger these interest charges. Therefore, franchisees need to maintain diligent financial management to avoid these additional costs. It is important to note that the interest rate could be as high as 18% per year, which could significantly increase the financial burden if payments are not made on time.