Can Batteries Plus Bulbs operate its own stores outside of a franchisee's protected area?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Rights Reserved To Franchisor. Franchisor (for itself and its affiliates) retains the right:
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- to itself operate, and to grant other persons the right to locate and operate, Batteries Plus® stores at locations outside the Protected Area (except to the extent Franchisor may be restricted under a separate Batteries Plus® Multiple Unit Franchise Agreement or Franchise Agreement to which Franchisee is a party);
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- to sell the products and services authorized for sale at Batteries Plus® stores under trademarks and service marks other than the Licensed Marks through similar or dissimilar channels of distribution;
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- subject to Franchisee's limited rights respecting Qualified E-Commerce Transactions as further described in Section 2(C) above, to sell the products and services authorized for sale at Batteries Plus® stores under the Licensed Marks through dissimilar channels of distribution (i.e., other than the operation of full-service retail Batteries Plus® stores), including by electronic means such as the Internet and by websites established by Franchisor, and pursuant to conditions Franchisor deems appropriate within and outside the Protected Area; and
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, Batteries Plus Bulbs retains the right to operate its own stores or grant others the right to operate Batteries Plus Bulbs stores at locations outside a franchisee's protected area. This is subject to any restrictions Batteries Plus Bulbs might have under a separate Multiple Unit Franchise Agreement or Franchise Agreement to which the franchisee is a party. This means that while a franchisee is granted a protected area where Batteries Plus Bulbs will not directly compete with them by opening another full-service retail store, this protection does not extend beyond that defined area.
This provision is typical in franchising, as franchisors need the flexibility to expand their brand's presence in different markets. For a prospective franchisee, this means that while their immediate territory is protected, Batteries Plus Bulbs can still establish new locations nearby, potentially impacting the franchisee's business over time. The franchisee's protected area is defined in Exhibit A of the Franchise Agreement, and it is crucial for the franchisee to understand the exact boundaries of this area before signing the agreement.
Batteries Plus Bulbs also retains the right to sell products and services authorized for sale at Batteries Plus Bulbs stores under trademarks and service marks other than the Licensed Marks through similar or dissimilar channels of distribution. They also retain the right, subject to the franchisee's limited rights respecting Qualified E-Commerce Transactions, to sell the products and services authorized for sale at Batteries Plus Bulbs stores under the Licensed Marks through dissimilar channels of distribution, including by electronic means such as the Internet and by websites established by Batteries Plus Bulbs, and pursuant to conditions Batteries Plus Bulbs deems appropriate within and outside the Protected Area. This includes sales through the internet.
Therefore, a potential franchisee should carefully consider the defined protected area and the potential for Batteries Plus Bulbs to operate or franchise other stores outside that area. Understanding these rights is essential for assessing the long-term potential and competitive landscape of their franchise location.