How does Batteries Plus Bulbs record shipping revenue?

According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the company records shipping revenue as an offset to shipping expense. This accounting treatment is considered a fulfillment activity because the shipping and handling are completed before the customer gains control of the goods.

For a prospective Batteries Plus Bulbs franchisee, this means that the revenue generated from shipping charges is not recognized as a separate revenue stream. Instead, it reduces the amount of shipping expenses the company reports. This approach provides a net view of shipping costs in the financial statements.

This accounting practice is not uncommon, as it reflects the idea that shipping is a necessary part of delivering the product rather than a distinct service. By offsetting shipping revenue against shipping expenses, Batteries Plus Bulbs aims to present a clearer picture of the actual costs associated with fulfilling orders. This can help in assessing the efficiency of their logistics and supply chain operations.