How long does a Batteries Plus Bulbs franchisee have to pay all amounts due upon termination?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement(1) | Summary(1) |
|---|---|---|
| a. Length of the franchise term | Section 3; Section 3 of Multiple Unit Franchise Agreement | Franchise Agreement: 10 years. Multiple Unit Franchise Agreement: Ends on last day of Development Schedule. |
| b. Renewal or extension | Section 3 | If you are in good standing, you can renew the Franchise |
| of the term | Agreement for one additional 10 year term. | |
| c. Requirements for you to renew or extend | Section 3 | Provide advance notice, comply with current Franchise Agreement, you and your Store Manager satisfactorily complete any new/refresher training programs, you and your Principal Owners must meet current managerial, financial and business standards, sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, pay renewal fee and Omni-Channel access renewal fee, and sign a general release of claims. |
| d. Termination by you | Section 17 | If you comply with the Franchise Agreement, and we fail to cure a material provision within 60 days after written notice. |
| e. Termination by us | Not Applicable | |
| without cause | ||
| f. Termination by us with cause | Section 16; Section 13 of Multiple Unit Franchise Agreement | We may terminate the Franchise Agreement and Multiple Unit Franchise Agreement only if you default. |
| Provision | Section in Agreement(1) Summary(1) | |
| g. “Cause” defined – curable defaults | Sections 16(B) and (C); Section 13(A) of Multiple Unit Franchise Agreement Franchise Agreement: You have 30 days to cure failure to open Store when required, failure to complete training, failure to comply with System standards, fail to renew or maintain Store lease, breach under another Batteries Plus franchise agreement, and a violation of any material provision of the Agreement. You have 10 days to cure a failure to pay amounts due us or any creditors. Multiple Unit Franchise Agreement: You have 30 days to cure failure to meet development requirements, failure to comply with this Agreement or the Franchise Agreement or you terminate a franchise Agreement without cause, and failure to comply with any requirements in the Operations Manual. You have 10 days to cure a failure to pay amounts due us or any creditors. | |
| h. “Cause” defined – non- curable defaults | Sections 16(B) and (C); Section 13(B) of Multiple Unit Franchise Agreement Franchise Agreement: Failure on 3 or more occasions in any 12 months to comply with any provision, default which is not curable, repeatedly deceive Store customers, conviction of or proof that you have committed a felony or other crime which harms the Store’s reputation, insolvency, an assignment of assets to creditors, Store abandonment, defaults which injures the goodwill associated with the Licensed Marks, use of unapproved website or other unauthorized conduct on the internet, unauthorized assignment of agreement or interest, and intentionally falsify any information provided to us. Multiple Unit Franchise Agreement: Failure on 3 or more occasions in any 12 months to comply with any provision, unauthorized assignment, material misrepresentation or omission in franchise application, conviction of or proof that you have committed a felony or other crime that harms Store’s reputation, improper disclosure of Confidential Information, insolvency, unauthorized use of Licensed Marks that injures goodwill, use of unapproved website or other unauthorized conduct on the internet, default which is not curable or an immediate threat or danger to public health or safety resulting from construction, maintenance or operation of the Store. | |
| Provision | Section in Agreement(1) | Summary(1) |
| i. Your obligations on termination/nonrenewal | Section 18; Section 13(C) of Multiple Unit Franchise Agreement | Franchise Agreement: Pay all amounts due us (including future lost royalties, service fees and NMF Fees) within 10 days of termination if termination was due to your breach of the Franchise Agreement), stop using and return (or destroy at our option) manuals and other materials, assign to us the Store telephone number and telephone listing or (at our option) disconnect the telephone number, remove all signs and other materials containing any Licensed Marks, comply with obligations under the Proprietary Software license/access agreements, cancel all fictitious or assumed name filings, cease using Confidential Information, agree not to divert Store customers to any competing business for 2 years and redecorate the Store premises (also see o, r below). Multiple Unit Franchise Agreement: lose rights to open Stores under agreement and agree not to divert Store customers to any competing business for 2 years. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, a franchisee has 10 days to pay all outstanding amounts if the termination was due to the franchisee's breach of the Franchise Agreement. This includes any future lost royalties, service fees, and NMF Fees.
This requirement means that upon termination due to a breach, a franchisee must promptly settle all financial obligations with Batteries Plus Bulbs. Failure to do so within the specified timeframe could lead to further legal action or additional penalties.
In addition to paying all amounts due, the franchisee must also stop using and return (or destroy at Batteries Plus Bulbs' option) all manuals and other materials, assign the store telephone number and listing to Batteries Plus Bulbs (or disconnect it at their option), remove all signs and materials containing licensed marks, comply with proprietary software license agreements, cancel fictitious name filings, cease using confidential information, and refrain from diverting customers to competing businesses for two years. The franchisee is also required to redecorate the store premises.
Prospective franchisees should be aware of these obligations and ensure they have sufficient financial resources to meet these requirements in the event of termination. Understanding the conditions under which termination can occur and the associated financial responsibilities is crucial for managing the risks associated with the franchise agreement.