What is the purpose of the Digital Marketing Program administered by Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus oversees and administers the Digital Marketing Program (the Program) which serves as a marketing coop for all Batteries Plus stores. The Program develops, initiates and executes digital marketing programs including, but not limited to, the development of electronic, or internet-based marketing activities for the mutual benefit of its contributors. The Program is not a separate legal entity and is included in the Company's consolidated balance sheets. The Program is managed by Batteries Plus.
Contributions to the Program are generally based upon 2.5% of store net revenues. A summary of the contributions to the program, which are restricted for digital marketing activities, and the expenditures from the Program is as follows for years ended December 31:
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the Digital Marketing Program serves as a marketing cooperative for all Batteries Plus Bulbs stores. Batteries Plus Bulbs administers this program, which is designed to develop, initiate, and execute digital marketing programs. These programs include electronic or internet-based marketing activities intended to benefit all contributors to the program.
For a prospective franchisee, this means that a portion of their revenue, generally 2.5% of store net revenues, is allocated to a collective digital marketing effort managed by Batteries Plus Bulbs. This contribution is restricted for digital marketing activities. The program aims to enhance the online presence and reach of all Batteries Plus Bulbs stores through coordinated digital campaigns.
It is important to note that the Digital Marketing Program is not a separate legal entity but is integrated into Batteries Plus Bulbs's consolidated balance sheets. This implies that Batteries Plus Bulbs has direct oversight and control over the funds and activities of the program. The contributions from franchisees are recorded as operating income for Batteries Plus Bulbs, while the marketing expenditures are recorded as an operating expense.
Batteries Plus Bulbs also operates a National Marketing Fund and a Local Media Program, indicating a comprehensive approach to marketing that includes traditional, digital, and local strategies. The Digital Marketing Program focuses specifically on leveraging electronic and internet-based marketing to drive business to individual Batteries Plus Bulbs locations.