How much did Batteries Plus Bulbs spend on the purchase of property and equipment in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
atteries Plus acquired the operating assets of four franchised stores using available cash on-hand. Batteries Plus now operates these locations as Batteries Plus operated stores. The allocation of the $1,991 purchase price was based on the fair value of the assets acquired and liabilities assumed, which is summarized as follows: $495 to inventory, $216 to property and equipment, $3 to other assets, $1,423 to goodwill, and ($146) to current liabilities.
During 2022, Batteries Plus acquired the operating assets of six franchised stores and one warehouse. Batteries Plus now operates these locations as Batteries Plus operated stores. The allocation of the $3,292 purchase price was based on the fair value of the assets acquired and liabilities assumed, which is summarized as follows: $867 to inventory, $287 to property and equipment, $10 to other assets, $2,208 to goodwill, and ($81) to current liabilities. Of this purchase price, $2,362 was cash and $930 was a note payable paid by the Company in January 2023.
Operating results of franchised stores acquired have been included in the accompanying consolidated financial statements from their respective acquisition dates forward.
NOTE M - SALE OF CORPORATE-OWNED STORES
The Company did not sell any corporate-owned stores in 2023.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the company allocated $287,000 to property and equipment when acquiring the operating assets of six franchised stores and one warehouse in 2022. Additionally, Batteries Plus Bulbs allocated $206,000 to property and equipment when selling the operating assets of five corporate-owned stores in 2022. These figures are part of a larger allocation of purchase and selling prices based on the fair value of assets acquired/sold and liabilities assumed.
For a prospective franchisee, this indicates that Batteries Plus Bulbs is actively involved in acquiring and selling stores, which can impact the brand's overall strategy and market presence. The allocation to property and equipment provides insight into the tangible assets involved in these transactions.
It's important to note that these figures represent the company's activity related to store acquisitions and sales, and not necessarily the typical investment a new franchisee would make in property and equipment to start their own Batteries Plus Bulbs franchise. A prospective franchisee should refer to other sections of the FDD, such as Item 7, to understand the estimated initial investment required to set up a new franchise location, including costs for property, equipment, and other assets.