What is the NMF Fund and who operates it for Batteries Plus Bulbs franchisees?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
We operate a National Marketing Fund (the "NMF Fund") to advertise and promote Stores in the System. You will pay us a monthly national marketing fee of 1% of your Store's Net Revenues (the "NMF Fee"). We will deposit the NMF Fee in the NMF Fund that we manage through a separate account. We may use the NMF Fund to conduct national, regional and local advertising, marketing, promotional and public relations campaigns, including the cost of preparing and conducting print, point of purchase, radio, television, internet, electronic and billboard advertising, supporting Key Accounts Program activities, ecommerce website activities, providing market intelligence through analytics to the System, and employing advertising and marketing agencies. We also will use the NMF Fund to develop advertising and promotional materials for regional and local advertising and marketing cooperatives and for use in each franchisee's local market. In certain developing markets, we may assist franchisees' initial advertising and promotional activities in an effort to increase brand awareness. We have an in-house marketing staff that assists in developing and placing local advertising and other matters. We also contract with various outside advertising and marketing agencies and third party vendors to produce certain advertising and promotional materials and to create and implement public relations campaigns. We will determine the use of monies in the NMF Fund. We are reimbursed for reasonable administrative costs and overhead incurred in administering the NMF Fund.
We are not required to spend any particular amount on marketing, advertising or production in the area in which your Store is located. NMF Fees not spent in any fiscal year will be carried over for future use. We may make loans to the NMF Fund bearing reasonable interest to cover any deficit of the NMF
Fund and cause the NMF Fund to invest in a surplus for future use by the NMF Fund. NMF Fees will not be used for advertising principally directed at the sale of franchises. At your request, we will provide you with an annual unaudited statement of the receipts and disbursements of the NMF Fund.
Each new Batteries Plus® franchisee must pay the NMF Fee. Other franchisees pay the same amount for the NMF Fee. In addition, each Batteries-owned Store will contribute to the NMF Fund on the same basis as franchisees.
When developing marketing strategy and allocating the use of NMF Fees, we consult with our NMF Council (the "Council"). There are 6 franchisees on the Council. Council members are elected by the franchisees and serve for a 3 year term. The Council serves in an advisory capacity to provide advice on advertising, research and promotional activities to us and our outside advertising and marketing agencies. We have the power to form, change or dissolve the Council.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 34–43)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the National Marketing Fund (NMF Fund) is used to advertise and promote Batteries Plus Bulbs stores within the system. Batteries Plus Bulbs franchisees are required to pay a monthly national marketing fee (NMF Fee) of 1% of their store's net revenues, which is then deposited into the NMF Fund. Batteries Plus Bulbs manages the NMF Fund through a separate account.
Batteries Plus Bulbs uses the NMF Fund for various advertising, marketing, and promotional activities at the national, regional, and local levels. These activities include print, point-of-purchase, radio, television, internet, electronic, and billboard advertising. The fund also supports key accounts program activities, e-commerce website activities, and market intelligence analytics. Batteries Plus Bulbs also develops advertising and promotional materials for regional and local advertising and marketing cooperatives, and for use in each franchisee's local market. An in-house marketing staff assists in developing and placing local advertising, and Batteries Plus Bulbs contracts with outside agencies and vendors for additional support.
Batteries Plus Bulbs determines how the NMF Fund monies are used and is reimbursed for reasonable administrative costs and overhead incurred in administering the fund. While franchisees contribute to the NMF Fund, Batteries Plus Bulbs is not obligated to spend a specific amount on marketing or advertising in any particular area. Unspent NMF Fees are carried over for future use, and Batteries Plus Bulbs may make loans to the NMF Fund or invest surplus funds. Franchisees can request an annual unaudited statement of the NMF Fund's receipts and disbursements. Batteries-owned stores also contribute to the NMF Fund on the same basis as franchisees.
Batteries Plus Bulbs consults with the NMF Council when developing marketing strategy and allocating NMF Fees. The NMF Council consists of six franchisees elected by the franchisee community who serve a three-year term. The Council acts in an advisory capacity, providing advice on advertising, research, and promotional activities to Batteries Plus Bulbs and its outside agencies. Batteries Plus Bulbs retains the power to form, change, or dissolve the Council.