What is the maximum amount the Digital Marketing Contribution can be for Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue of $2,632,225.
- (4) We will determine future Digital Marketing and Local Media Program Contributions, provided that the Digital Marketing Contribution will not exceed the greater of 3% of Net Revenues or the "Minimum Store Promotion Requirement."
- (5) The term "Minimum Store Promotion Requirement" means: (i) during the first calendar year (or portion thereof) following the Store opening date, a pro rata amount of $20,000 based upon the number of weeks during the calendar year in which the Store was in operation; and (ii) during the first full and each subsequent calendar year during the term of the Franchise Agreement, the greater of 4% of your Store's Net Revenues (based on Store Net Revenues for the previous calendar year) or $20,000. When the physical Store opens for retail sales activities, you will pay us $20,000 as your initial Minimum Store Promotion Requirement and we will apply those funds towards your Digital Marketing and Local Media Program contributions. Once such amounts are used, you will pay your Digital Marketing and Local Media Program contributions monthly. If you do not satisfy the Minimum Store Promotion Requirement for a calendar year, you must deposit with us the difference between the amount of the Minimum Store Promotion Requirement and the amount you actually spent during the calendar year on qualifying advertising or promotional activities. Franchisor will deposit that amount in the NMF Fund (see Item 11
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the Digital Marketing Contribution will not exceed the greater of 3% of Net Revenues or the Minimum Store Promotion Requirement. The Minimum Store Promotion Requirement is defined as a pro rata amount of $20,000 during the first calendar year (or portion thereof) following the store opening date, based on the number of weeks the store was in operation during that year. For the first full calendar year and each subsequent year, the Minimum Store Promotion Requirement is the greater of 4% of the store's Net Revenues from the previous year or $20,000.
When a Batteries Plus Bulbs store opens for retail sales, the franchisee will initially pay $20,000 as their initial Minimum Store Promotion Requirement, which will be applied towards Digital Marketing and Local Media Program contributions. Once these funds are exhausted, the franchisee will pay their Digital Marketing and Local Media Program contributions monthly. If a franchisee does not meet the Minimum Store Promotion Requirement for a calendar year, they must deposit the difference between the required amount and their actual spending on qualifying advertising or promotional activities with Batteries Plus Bulbs. Batteries Plus Bulbs will then deposit this amount into the NMF Fund.
In summary, the maximum Digital Marketing Contribution for a Batteries Plus Bulbs franchise is capped at the higher of 3% of Net Revenues or the Minimum Store Promotion Requirement. The Minimum Store Promotion Requirement is either a pro-rated $20,000 in the first year or the greater of 4% of the previous year's Net Revenues or $20,000 in subsequent years. This structure ensures that franchisees contribute adequately to marketing efforts, with a baseline requirement and a cap to prevent excessive contributions.