Does Batteries Plus Bulbs recommend purchasing the land and building for the store location?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Although most franchisees lease the premises for their Store, a small number of franchisees will purchase the land and construct the building for their Store. The cost of purchasing unimproved land will vary depending on location, availability of utilities and other factors and cannot be estimated by us. The construction costs for the building also will vary significantly depending on many of the same factors mentioned above as well as the size of the building and the availability of financing. Due to these many factors and a lack of historical information on which to base an estimate, we cannot estimate the cost of the building.
(13) Typical locations for your Store are smaller free-standing, multiple use and strip center locations. Assuming that you will lease the premises for your Store, you will need to make certain leasehold improvements to the leased premises to comply with our approved plans and specifications. Leasehold improvements include lighting, flooring, partition walls, interior signage and vehicle graphics. We anticipate that you will negotiate the cost of leasehold improvements as part of your rental expense. The exact cost or impact on your rental expense will depend on several factors, including the condition of the premises, whether you elect to do more than the minimum required renovations, the landlord's agreement to reimburse you for certain improvements, the size and
location of the premises for your Store and other economic factors. Although we do not recommend that you purchase the land and building for your Store, you will incur significantly greater costs in developing your Store if you choose to do so. All construction materials and fixtures must comply with our specifications. Although we estimate that you will need to lease premises of approximately 1,000 to 1,600 square feet for a Store, you may need larger premises in some situations. You will incur greater start-up costs if you cannot negotiate the cost of leasehold improvements as part of your rental expense. You are responsible for any architectural plans that you may be required to submit.
- (14) This amount includes estimated expenses for test equipment, fixtures, and charging equipment.
The cost of purchasing equipment may vary as a result of the characteristics of the Store site and the shipping distances from suppliers.
You may purchase or lease approved brands and models of equipment and fixtures from any approved supplier.
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the company does not recommend that franchisees purchase the land and building for their store. The FDD indicates that while a small number of franchisees may choose to purchase land and construct a building, it is not the typical approach. The document states that most franchisees lease their store premises.
The FDD outlines the estimated rental expenses, which range from $20 to $45 per square foot, including common area maintenance and taxes. This estimate is based on leasing the premises. The document also notes that if a franchisee chooses to purchase the land and construct a building, the costs will be significantly greater. These costs are difficult to estimate due to variations in location, availability of utilities, construction costs, and financing options.
For prospective Batteries Plus Bulbs franchisees, this means that leasing is the more common and recommended route. Leasing allows for a more predictable initial investment, with estimated rental costs provided in the FDD. Purchasing land and constructing a building, while an option, involves significantly higher and less predictable costs, making it a riskier venture for most franchisees. Batteries Plus Bulbs provides cost estimates assuming the franchisee will lease the store premises.