What is the maximum amount Batteries Plus Bulbs can charge per day for the management fee?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law | When due | Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries or our affiliates. |
| Management Fee | Up to $500 per day plus cost and overhead | When due | Payable if you are in default under the Franchise Agreement and we elect to operate the Store until the default has been cured. |
| Insurance | Cost of insurance | Payable before opening | If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges. |
| Software Support | Varies, currently $472 per month | Payable monthly | May increase up to 10% each calendar year. See Item 11 |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the maximum management fee that Batteries Plus Bulbs can charge is up to $500 per day, in addition to costs and overhead. This fee is only applicable if a franchisee is in default under the Franchise Agreement, and Batteries Plus Bulbs elects to operate the store until the default is resolved.
This management fee is not a standard, ongoing fee. It is only charged under specific circumstances when the franchisee is in default and Batteries Plus Bulbs steps in to manage the store. The fee covers the cost and overhead incurred by Batteries Plus Bulbs while operating the store during the default period.
Prospective franchisees should understand the conditions under which this management fee can be imposed. It is important to maintain compliance with the Franchise Agreement to avoid default and the potential for this fee to be charged. Franchisees should also inquire about what specific actions or failures constitute a default under the Franchise Agreement to fully understand their obligations and avoid triggering this fee.