What was the net value of merchandise inventories for Batteries Plus Bulbs in the later year?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Merchandise inventories are comprised of the following as of December 31: | 2024 | 2023 |
|---|---|---|
| Merchandise inventories | $59,560 | $51,367 |
| Less: reserve for inventory obsolescence | (3,167) $56,393 | (2,791) $48,576 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the net value of merchandise inventories is detailed in the balance sheets. The document provides figures for two years, with the later year showing a higher value.
Specifically, for the later year, Batteries Plus Bulbs reported merchandise inventories, net, of $56,393. This figure represents the total merchandise inventories of $59,560, less a reserve for inventory obsolescence of $3,167.
Understanding the net merchandise inventory is crucial for prospective franchisees as it reflects the value of goods available for sale. A higher inventory value typically indicates a greater potential for sales, but it also carries the risk of obsolescence, which Batteries Plus Bulbs accounts for with a reserve. Franchisees should consider these figures in their financial planning and inventory management strategies.