What are the obligations of a Batteries Plus Bulbs franchisee upon termination or non-renewal?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement(1) | Summary(1) |
|---|---|---|
| i. Your obligations on termination/nonrenewal | Section 18; Section 13(C) of Multiple Unit Franchise Agreement | Franchise Agreement: Pay all amounts due us (including future lost royalties, service fees and NMF Fees) within 10 days of termination if termination was due to your breach of the Franchise Agreement), stop using and return (or destroy at our option) manuals and other materials, assign to us the Store telephone number and telephone listing or (at our option) disconnect the telephone number, remove all signs and other materials containing any Licensed Marks, comply with obligations under the Proprietary Software license/access agreements, cancel all fictitious or assumed name filings, cease using Confidential Information, agree not to divert Store customers to any competing business for 2 years and redecorate the Store premises (also see o, r below). Multiple Unit Franchise Agreement: lose rights to open Stores under agreement and agree not to divert Store customers to any competing business for 2 years. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, Item 17 details the franchisee's obligations upon termination or non-renewal of the franchise agreement. Specifically, the franchisee must pay all outstanding amounts due to Batteries Plus Bulbs, including future lost royalties, service fees, and National Marketing Fund (NMF) fees, within 10 days of termination if the termination resulted from the franchisee's breach of the agreement.
Additionally, the franchisee is required to cease using and return (or destroy, at Batteries Plus Bulbs's option) all manuals and other materials related to the franchise. They must also assign the store's telephone number and listing to Batteries Plus Bulbs or disconnect the number at Batteries Plus Bulbs's discretion. The franchisee must remove all signs and materials displaying any licensed marks and comply with the obligations outlined in the proprietary software license/access agreements.
Furthermore, the franchisee is obligated to cancel all fictitious or assumed name filings and cease using any confidential information. A significant restriction is the agreement not to divert store customers to any competing business for a period of two years. Lastly, the franchisee is responsible for redecorating the store premises to remove any branding or identifying marks associated with Batteries Plus Bulbs. For franchisees with a Multiple Unit Franchise Agreement, they will lose rights to open stores under the agreement and agree not to divert Store customers to any competing business for 2 years.