Does Batteries Plus Bulbs have any material residual value guarantees in its lease agreements?

According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, their lease agreements do not contain any material residual value guarantees. This means that Batteries Plus Bulbs, as the company, does not guarantee the value of the leased property at the end of the lease term. This information is relevant to prospective franchisees as it indicates that they will not be responsible for covering any potential shortfall if the leased property is worth less than expected at the end of the lease.

This lack of residual value guarantees in Batteries Plus Bulbs' lease agreements can be seen as a benefit for franchisees. Typically, a residual value guarantee would obligate the franchisee to ensure the leased asset maintains a certain value at the end of the lease term, potentially requiring them to cover any difference if the actual value is lower. Since Batteries Plus Bulbs' agreements do not have this clause, franchisees avoid this potential financial risk.

It is important for prospective franchisees to carefully review all lease agreements and related disclosures to fully understand their obligations and potential liabilities. While the FDD states that there are no material residual value guarantees, franchisees should still confirm this with Batteries Plus Bulbs and their legal counsel to ensure they are fully aware of all terms and conditions.