What is the purpose of the Digital Marketing Program for Batteries Plus Bulbs franchisees?

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 and internet-based marketing activities intended to mutually 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 pooled with contributions from other franchisees to fund digital marketing efforts. These efforts are managed by Batteries Plus Bulbs, which decides on the specific marketing programs to be implemented. The program is not a separate legal entity and is included in the Company's consolidated balance sheets.

This arrangement allows Batteries Plus Bulbs to coordinate digital marketing strategies across the entire franchise system, potentially achieving economies of scale and ensuring consistent brand messaging. However, franchisees have limited control over the specific marketing initiatives undertaken, as the program is managed by Batteries Plus Bulbs. Franchisees benefit from the expertise and resources of the franchisor in developing and executing digital marketing campaigns, which can be particularly valuable in the rapidly evolving digital landscape.

It's important for prospective franchisees to understand how these digital marketing funds are used and to evaluate the effectiveness of the programs implemented by Batteries Plus Bulbs. Reviewing past marketing initiatives and their impact on sales can provide valuable insights into the potential benefits of participating in the Digital Marketing Program.