What was the reported cost of merchandise sold for a Batteries Plus Bulbs franchise in 2023?
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 cost of merchandise sold in 2023 was $160,260. This figure represents the direct expenses a Batteries Plus Bulbs store incurred to acquire the goods it sold during that year.
For a prospective franchisee, understanding the cost of merchandise sold is crucial for assessing profitability. It directly impacts the gross profit, which is the revenue from merchandise sales minus the cost of goods. In 2023, merchandise sales totaled $288,296, resulting in a gross profit of $114,635.
Analyzing these figures helps potential franchisees understand the relationship between sales volume and the cost of goods. This information is vital for creating realistic financial projections and managing inventory effectively. By comparing these costs with industry benchmarks and the performance of other Batteries Plus Bulbs franchises, a franchisee can better evaluate the financial viability of the business.