What is the purpose of the exhibit mentioned in the Batteries Plus Bulbs Franchise Agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions contained in this Agreement, Franchisor grants Franchisee a franchise (the "Franchise") to own and operate a Batteries Plus® Store at a site approved by Franchisor and to use the Licensed Marks in operating the Store.
The location of the Store and Franchisee's Protected Area are identified in Exhibit A, or alternatively, Franchisor and Franchisee will complete and sign Alternative Exhibit A, in which Franchisor and Franchisee agree upon a geographic area in which the location of the Store will be established, subject to Franchisor's written acceptance, at least one hundred and fifty days (150) days before the date the Store is scheduled to open as stated in Exhibit A or Alternative Exhibit A.
The designation of the geographic area in Alternative Exhibit A does not confer any territorial rights upon Franchisee, and Franchisor and its affiliates have the right to operate and franchise other Stores within the designated area.
Once Franchisor consents to a location for the Store within the geographic area established in Alternative Exhibit A, however, Franchisor and Franchisee will update Exhibit A and identify the Protected Area.
- B.
Nature of Franchisee's Protected Area.
During the term of this Agreement (as described in Section 3) and subject to Section 2(D) below, if Franchisee is in compliance, Franchisor will not directly operate or franchise another to operate any other full-service Batteries Plus® store within the Protected Area.
The license granted to Franchisee under this Agreement is personal in nature, may not be used at any location other than the Store, does not include the right to sell products or services identified by the Licensed Marks at any location other than at the Store, and does not include the right to sell products or services identified by the Licensed Marks through any other channels of distribution, including the Internet (or any other existing or future form of electronic or digital commerce).
Franchisee will not open any other Batteries Plus® store in the Protected Area.
Franchisee will not have the right to subfranchise or sublicense any of its rights under this Agreement.
Franchisee will not use the Store for any purposes other than the operation of a Batteries Plus® store.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Exhibit A to the Franchise Agreement serves to identify the location of the franchisee's store and define the franchisee's protected area. Alternatively, Batteries Plus Bulbs and the franchisee can complete and sign Alternative Exhibit A to agree upon a geographic area in which the store will be established. This must be done at least 150 days before the store is scheduled to open, as stated in either Exhibit A or Alternative Exhibit A.
Alternative Exhibit A does not grant any territorial rights to the franchisee initially. Batteries Plus Bulbs and its affiliates retain the right to operate or franchise other stores within the designated area outlined in Alternative Exhibit A. However, once Batteries Plus Bulbs approves a specific location within the geographic area defined in Alternative Exhibit A, both parties will update Exhibit A to formally identify the franchisee's protected area.
During the term of the Franchise Agreement, Batteries Plus Bulbs will not directly operate or franchise another full-service Batteries Plus Bulbs store within the franchisee's protected area, provided the franchisee remains in compliance with the agreement. The franchise license is specific to the approved store location and does not extend to other locations or channels of distribution, including online sales. The franchisee is also prohibited from opening additional Batteries Plus Bulbs stores within the protected area or subfranchising any rights granted under the agreement.