What was the reported amount of royalty fees for a Batteries Plus Bulbs franchise in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| Merchandise sales | $ 268,600 | $ 283,671 | |
| Cost of merchandise sold | 160,260 | 171,838 | |
| Gross profit | 108,340 | 111,833 | |
| Other operating income | |||
| Franchise fees | 1,895 | 1,718 | |
| Royalty fees | 23,305 | 23,060 | |
| Supplier commissions | 8,201 | 6,885 | |
| Marketing fund | 19,776 | 19,854 | |
| Other fees | 8,962 | 8,341 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the reported royalty fees for Batteries Plus Bulbs franchise in 2022 were $23,060. This figure is part of the receipts reported in the FDD. Royalty fees are a standard component of franchise agreements, typically paid by the franchisee to the franchisor based on a percentage of gross sales.
For a prospective Batteries Plus Bulbs franchisee, understanding the royalty fee structure is crucial. It represents an ongoing expense that will impact the profitability of the franchise. The $23,060 figure provides a benchmark, but it's important to note that actual royalty fees may vary depending on the franchisee's sales volume. Reviewing historical data and understanding the factors that influence royalty fees can help a franchisee forecast expenses and assess the financial viability of the franchise.
It is also important to note that the royalty fees are not the only fees a franchisee will encounter. Other fees such as franchise fees, marketing fund contributions, and other fees also contribute to the total cost of operating a Batteries Plus Bulbs franchise. A prospective franchisee should carefully consider all these fees when evaluating the financial aspects of the franchise opportunity.