What is the purpose of the National Marketing Fund administered by Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus administers the National Marketing Fund (the Fund) which serves as a marketing association for all Batteries Plus stores. The Fund develops, initiates and executes marketing programs including, but not limited to, the development of traditional marketing tools for the mutual benefit of its contributors. The Fund is not a separate legal entity and is included in the Company's consolidated balance sheets. The Fund is managed by Batteries Plus.
Contributions to the Fund are generally based upon 1% of adjusted gross sales of each Batteries Plus operated and franchised stores. A summary of the contributions to the Fund, which are restricted for marketing and expenditures from the Fund is as follows for years ended December 31:
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the National Marketing Fund serves as a marketing association for all Batteries Plus Bulbs stores. Batteries Plus Bulbs administers the fund, which is not a separate legal entity and is included in the company's consolidated balance sheets. The purpose of the fund is to develop, initiate, and execute marketing programs, including traditional marketing tools, for the mutual benefit of all contributors.
Franchisees contribute to the National Marketing Fund based on a percentage of their adjusted gross sales. Specifically, contributions are generally based on 1% of adjusted gross sales from each Batteries Plus Bulbs operated and franchised store. These contributions are restricted for marketing purposes, ensuring that the funds are used to promote the Batteries Plus Bulbs brand and support its stores.
For a prospective franchisee, this means that a portion of their gross sales will be allocated to a central fund managed by Batteries Plus Bulbs, which will then be used for marketing initiatives intended to benefit all stores. Understanding how these funds are managed and the specific marketing programs they support is crucial for evaluating the potential return on investment and the overall value of the franchise.