In what other location can Batteries Plus Bulbs file suit against a franchisee?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, having any interest in, or assist any person or entity engaged in any business that distributes, sells or otherwise deals in, at wholesale or retail, any battery, light bulb or related products, any device repair, key fob repair or replacement, or other services offered at a Batteries Plus® store, or any other related business that is competitive with or similar to a Batteries Plus® store that is located at the Store or within a fifteen (15) mile radius of the former site of the Store or any other then existing Batteries Plus® store; provided, however, that this Section 14(C) will not apply to: (i) other stores that Franchisee operates under a franchise agreement with us; or (ii) the ownership of securities listed on a stock exchange or traded on the over-thecounter market that represent one percent (1%) or less of that class of securities. For purposes of this Section, any form of e-commerce business or website that distributes, sells or otherwise deals in, at wholesale or retail, any battery, light bulb or related products or any device repair, key fob repair or replacement, or other services offered at a Batteries Plus® store, or any other related business that is competitive with or similar to a Batteries Plus® store will be in violation of this provision if such ecommerce business or website offers, sells or otherwise makes its products or services available to individuals residing within or businesses located within fifteen (15) mile radius of the former site of the Store or any other then-existing Batteries Plus® store. Franchisee agrees that the length of time in this Section 14(C) will be tolled for any period during which Franchisee is in breach of the covenants or any other period during which Franchisor seeks to enforce this Agreement.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
Based on the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the franchisor can take action against a franchisee if they engage in competitive activities within a specific geographic area. Specifically, if a franchisee, or anyone associated with them, has any involvement with a business that competes with a Batteries Plus Bulbs store, whether through distribution, sales, or service of similar products, within a fifteen-mile radius of the franchisee's store or any other existing Batteries Plus Bulbs store, the franchisor may pursue legal action. This restriction applies during the term of the franchise agreement and for a certain period after its termination.
This also extends to e-commerce activities. If a franchisee operates an online business that offers products or services to individuals or businesses within a fifteen-mile radius of the franchisee's store or any other Batteries Plus Bulbs location, this would be considered a violation of the agreement. The agreement specifies that the time during which these restrictions apply can be extended if the franchisee breaches the agreement or if the franchisor needs to take action to enforce it.
For a prospective franchisee, this means they are significantly restricted from operating or being involved in any competing business, both physical and online, within a substantial radius of their Batteries Plus Bulbs store or any other existing location. It is important to fully understand these restrictions and how they might impact any current or future business ventures. Franchisees should seek clarification from the franchisor regarding the precise definition of 'competing business' and the implications of these restrictions on their business activities.