What was the net value of merchandise inventories for Batteries Plus Bulbs 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.
During 2022, Batteries Plus sold the operating assets of five corporate-owned stores. Batteries Plus no longer operates these locations as Batteries Plus operated stores. The allocation of the $1,005 selling price was bas
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the document does not explicitly state the total net value of merchandise inventories as of December 31, 2022. However, it does provide information regarding the valuation and accounting practices for merchandise inventories. The FDD states that inventories, primarily consisting of merchandise held for resale, are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method for Ascent, which operates the supply chain, and the average-cost method for Batteries Plus Bulbs operated stores.
Additionally, the FDD mentions store acquisitions during 2022, where Batteries Plus Bulbs acquired the operating assets of six franchised stores and one warehouse. As part of these acquisitions, $867 (in thousands) was allocated to inventory based on the fair value of the assets acquired. It also mentions the sale of five corporate-owned stores in 2022, with $784 (in thousands) allocated to inventory as part of the selling price allocation. These figures relate to specific transactions and do not represent the total net value of merchandise inventories for the entire Batteries Plus Bulbs system as of the end of 2022.
To determine the total net value of merchandise inventories for Batteries Plus Bulbs as of December 31, 2022, a prospective franchisee should consult the company's complete audited financial statements. These statements, typically included in Item 21 of the FDD, would provide a comprehensive balance sheet detailing all assets, including merchandise inventories, at a specific point in time. Requesting and reviewing these statements is a crucial step in conducting thorough due diligence before investing in a Batteries Plus Bulbs franchise.