Does Batteries Plus Bulbs have any material restrictive covenants in its lease agreements?

According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the company's lease agreements do not contain any material restrictive covenants. This means that the agreements governing the retail stores, distribution centers, administrative offices, and equipment leases do not include significant limitations or restrictions that could substantially impact the franchisee's operations.

This information is relevant for prospective franchisees as it indicates that Batteries Plus Bulbs aims to provide flexibility in its lease arrangements. The absence of material restrictive covenants suggests that franchisees may have more autonomy in managing their leased premises without being overly constrained by the lease terms.

However, it is important to note that while the lease agreements do not contain material restrictive covenants, franchisees should still carefully review all lease terms and conditions. Understanding the full scope of the lease agreement is crucial to ensure compliance and avoid potential disputes with the landlord. Franchisees should also be aware of other non-material covenants or conditions that may still impact their business operations.

Batteries Plus Bulbs categorizes leases at their commencement date and recognizes lease-related assets and liabilities for leases with an initial term of 12 months or greater. The company also evaluates renewal options and includes options that are reasonably certain to exercise in its expected lease terms. This approach to lease management provides a structured framework for handling lease obligations and assets.