How are references to the franchisee interpreted in the Batteries Plus Bulbs agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
BATTERIES PLUS® FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into this day of , 20, between Batteries Plus, L.L.C., a Wisconsin limited liability company, with a principal place of business at 1325 Walnut Ridge Drive, Hartland, Wisconsin 53029 ("Franchisor"), and , a formed and operating under the laws of the State of, or, an individual, with a principal place of business at ("Franchisee").
INTRODUCTION
- A. Franchisor develops and owns a system (the "System") relating to the development and operation of retail stores selling batteries, light bulbs and related items, and offering device repair and key fob repair and replacement, and related services for the individual retail and commercial consumer.
- B. Franchisor is the owner of the Batteries Plus® trademark, and other trademarks and service marks (the "Licensed Marks") used in operating the System.
- C. Franchisor grants qualified persons the right to develop, own and operate a Batteries Plus® store at a specific location.
- D. Franchisee desires to obtain the right to develop and operate a Batteries Plus® store using the System at a specific location.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the term 'Franchisee' generally refers to the individual or entity that is granted the right to operate a Batteries Plus Bulbs store under the terms of the Franchise Agreement. The Franchise Agreement outlines the rights, responsibilities, and restrictions placed upon the franchisee. For instance, the franchisee is responsible for hiring and training employees, but must adhere to Batteries Plus Bulbs's brand standards.
The agreement also contains covenants related to non-solicitation of customers and non-competition, both during the term of the agreement and for a specified period after its expiration or termination. These covenants restrict the franchisee from engaging in activities that could harm the Batteries Plus Bulbs business, such as diverting customers to competing businesses or operating a competing business within a certain radius of a Batteries Plus Bulbs store.
Furthermore, the franchisee's ability to make alterations to the store, offer unauthorized products or services, and purchase supplies is limited by the agreement, requiring prior written approval from Batteries Plus Bulbs in many cases. The agreement also defines 'Principal Owner' as any person or entity with a ten percent or greater interest in the franchisee, extending certain obligations and restrictions to these individuals or entities as well.