factual

What is the Omni-Channel Program at Batteries Plus Bulbs?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

eries Plus® franchisees. See Item 8 for further discussion.

Omni-Channel Program. We have implemented the Omni-Channel Program, which is designed to promote the offer and sale of various batteries, light bulbs and related items, as well as device repair and related services through one or more electronic channels of distribution to retail, key accounts and business customers. You must participate in this Program, and comply with the terms of the Omni-Channel Program (or any future or successor electronic commerce programs) and periodically will establish rules (as described in the Operations Manual) under which you may recognize revenues from the sale of products and services to customers in your Protected Area. We may sell products and services to customers in your Protected Area through the Omni-Channel Program. We may terminate, modify or replace the Omni-Channel Program at any time, although we cannot unilaterally modify certain e-commerce territory rights you receive under the Franchise Agreement.

Key Accounts Program. Within our Omni-Channel Program, we currently operate a "Key Accounts Program" designed to address the needs of certain multi-state or multiple location customers including group purchasing organizations, insurance providers and other large volume users with multiple shipping/service destinations. You must participate in the Key Accounts Program and comply with the terms of the Program as described in the Operations Manual or as we otherwise describe in writing. We may sell products to key accounts customers located in your Protected Area under the terms of the Key Accounts Program. You must agree to service key accounts customers within a certain service and revenue area. We have established the rules under which you will participate in this program, including the servicing of accounts, recognition of revenues received from key accounts customers and other matters. We may terminate, modify, or replace the Key Accounts Program at any time.

Commercial Sales Program. You may offer and sell products and services to commercial customers (other than customers under the Key Accounts Program) located inside and outside the Protected Area, only pursuant to our then-current policy on commercial sales as described in the Operations Manual or otherwise in writing ("Commercial Sales Area"). There are no territorial protections for commercial sales, and other Batteries Plus® franchisees may offer and sell products and services to commercial customers located within your Protected Area.

Minimum Annual Net Revenues Quotas

You must meet a minimum annual Net Revenues quota during each full calendar year following the date the Store opens. If you do not do so, we may modify or eliminate your Protected Area. The minimum annual Net Revenues quotas are as follows:

Sections Number of Topics
Chapter 1: General Information 3
Chapter 2: The Brand 5
Chapter 3: The Franchise Relationship 24
Chapter 4: Brand Operating Standards 31
Chapter 5: Staffing Best Practices 10
Chapter 6: Operations Best Practices 11
Chapter 7: Crisis Management 6
Chapter 8: Management & Administration 10
TOTAL 100

MULTIPLE UNIT FRANCHISE AGREEMENT

If you enter into a Multiple Unit Franchise Agreement, you will receive certain protected rights to develop more than one Store within a designated geographic area (the "Designated Area") to be described in Exhibit A attached to the Multiple Unit Franchise Agreement. The size of the Designated Area will vary,

depending on the number Stores you intend to open, the population density, and the demographics in the area in which you desire to operate. The Designated Area may be one or more counties or cities in rural areas, and may be a portion of a metropolitan statistical area in heavily-populated major cities. We will not establish another franchised or company-owned full-service Batteries Plus® store in the Designated Area so long as you meet the Development Schedule, satisfy our minimum capital requirements to develop the Store, comply with all other provisions described in the Multiple Unit Franchise Agreement and you otherwise comply with the provisions of each related Franchise Agreement.

Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 48–49)

What This Means (2025 FDD)

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the Omni-Channel Program is designed to promote the sale of batteries, light bulbs, related items, device repair, and related services through electronic distribution channels to retail, key accounts, and business customers. Franchisees are required to participate in this program and comply with its terms, as well as any future electronic commerce programs. Batteries Plus Bulbs will establish rules, described in the Operations Manual, under which franchisees may recognize revenues from sales to customers in their protected area. Batteries Plus Bulbs retains the right to sell products and services to customers within a franchisee's protected area through the Omni-Channel Program and may modify or terminate the program at any time, although they cannot unilaterally change certain e-commerce territory rights granted in the Franchise Agreement. The Omni-Channel Program was launched in 2015.

As part of the Omni-Channel Program, Batteries Plus Bulbs operates a Key Accounts Program to serve multi-state, multiple location, or specialized service customers, including group purchasing organizations and insurance providers. Franchisees must participate in the Key Accounts Program and service key accounts customers in their service and revenue area. Batteries Plus Bulbs establishes the rules for franchisee participation and compensation in the Key Accounts Program and may modify or terminate the program at any time.

Franchisees must pay an Omni-Channel access fee of $10,000 before opening their store, as well as then-current fees associated with the program. Additionally, franchisees must pay a monthly maintenance fee of $200, with Batteries Plus Bulbs reserving the right to change this fee with 30 days' written notice. Franchisees also participate in a Batteries Plus Bulbs website and any franchisor-controlled intranet system, with Batteries Plus Bulbs determining the content and usage rules for these online platforms. The Omni-Channel Software allows Batteries Plus Bulbs franchisees to more fully participate in the Company's Omni-Channel Program.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.