How does Batteries Plus Bulbs' management determine the amounts for distributions?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
data protection. Management believes that the Company is in compliance, in all material respects, with such regulations as of December 31, 2024 and 2023.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2024 and 2023 (Dollars in thousands, except per share amounts)
NOTE J - PROFIT-SHARING PLAN
Batteries Plus has a qualified 401(k) contributory profit-sharing plan covering all eligible employees. The Company's contribution to the Plan is a discretionary amount determined each year by Batteries Plus. Contributions for the years ended December 31, 2024 and 2023 were approximately $1,533 and $1,538, respectively.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs determines the company's contribution to its profit-sharing plan. The FDD states that Batteries Plus Bulbs has a qualified 401(k) contributory profit-sharing plan covering all eligible employees. The company's contribution to this plan is a discretionary amount. This amount is determined each year by Batteries Plus Bulbs.
For the years ending December 31, 2024 and 2023, the contributions made by Batteries Plus Bulbs to the profit-sharing plan were approximately $1,533 and $1,538 respectively. For the years ending December 31, 2023 and 2022, the contributions made by Batteries Plus Bulbs to the profit-sharing plan were approximately $1,538 and $1,494 respectively.
As the contribution is discretionary, this means that the amount contributed can vary from year to year, depending on the company's financial performance and other factors that Batteries Plus Bulbs' management deems relevant. A prospective franchisee should inquire about the specific criteria and process used to determine these discretionary contributions, as this can impact employee benefits and overall financial planning.