Does Batteries Plus Bulbs operate a supply chain program from which it may receive compensation?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
I understand that Batteries operates a supply chain program on which Batteries may directly or indirectly receive compensation, and that a wholly-owned subsidiary of Batteries, Ascent Battery Supply, L.L.C. ("Ascent"), supplies the majority of batteries, light bulbs and related products to stores through the supply chain.
I also understand that, through this supply chain program, Ascent pays Batteries a product revenue payment in addition to reimbursement of certain expenses and interest on funds made available to Ascent.
I further understand that Ascent is responsible for all direct and indirect costs incurred by Batteries and its affiliates in the operation of the supply chain program and Ascent recovers all of these costs from franchisees through the prices that Ascent charges for products supplied to stores.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, Batteries Plus Bulbs does operate a supply chain program from which it may receive compensation. A wholly-owned subsidiary of Batteries Plus Bulbs, Ascent Battery Supply, L.L.C. supplies the majority of batteries, light bulbs, and related products to stores through this supply chain.
Through this program, Ascent pays Batteries Plus Bulbs a product revenue payment, in addition to reimbursing certain expenses and interest on funds made available to Ascent. Ascent is responsible for all direct and indirect costs incurred by Batteries Plus Bulbs and its affiliates in operating the supply chain program.
These costs are then recovered from franchisees through the prices that Ascent charges for the products supplied to the stores. This arrangement means that while franchisees are required to purchase the majority of their inventory through Ascent, the prices they pay are intended to cover all costs associated with the supply chain, including compensation to Batteries Plus Bulbs.