What is the maximum interest rate on late payments for a Batteries Plus Bulbs franchise?

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, franchisees may be charged interest on late payments. Specifically, all Royalty and Service Fees, national marketing fees (NMF Fees), and other amounts owed to Batteries Plus Bulbs or its affiliates will accrue interest if not paid on time.

The interest rate applied to these late payments will be the lesser of two options: one-and-one-half percent (1½%) per month, or the maximum contract rate of interest permitted by law in the state where the Batteries Plus Bulbs store is located. This means that the actual interest rate could vary depending on state laws, but it will never exceed 1.5% per month.

For a prospective Batteries Plus Bulbs franchisee, this clause highlights the importance of timely payments to avoid incurring interest charges. Franchisees should be aware of the due dates for all fees and payments to Batteries Plus Bulbs to prevent late fees. It would be prudent to understand the maximum contract rate of interest permitted by law in the state where they plan to operate their franchise, as this could potentially be lower than the 1.5% monthly rate specified in the franchise agreement.