According to the 2025 FDD, Batteries Plus Bulbs amortizes its internal-use software over a period of seven years. This amortization begins once the software is placed into service.

For a prospective franchisee, this means that the costs associated with developing internal-use software are not immediately expensed. Instead, these costs are capitalized and then gradually recognized as an expense over seven years. This accounting treatment can impact the financial statements of Batteries Plus Bulbs, affecting metrics such as net income and asset values during that period.

The FDD also specifies that costs related to internal-use software are initially expensed as incurred until the project reaches the application development stage, at which point certain development costs are capitalized. These capitalized costs may include external direct costs, payroll, payroll-related costs, and interest costs. This indicates a specific process Batteries Plus Bulbs follows for managing and accounting for software development expenses.

In 2024, capital expenditures for internal-use software totaled $3,205,000, while in 2023, these expenditures totaled $2,832,000. These figures provide insight into the level of investment Batteries Plus Bulbs makes in its internal software and how these investments are treated from an accounting perspective.