What was the reported gross profit 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 gross profit for a Batteries Plus Bulbs franchise in 2022 was $111,833. This figure is derived from merchandise sales of $283,671 less the cost of merchandise sold, which was $171,838.
Gross profit represents the revenue a Batteries Plus Bulbs franchise earns after deducting the direct costs associated with producing and selling its goods. It's a key indicator of profitability, showing how efficiently a franchise manages its production costs. For a prospective franchisee, understanding the gross profit is crucial as it provides insight into the potential earnings before considering other operating expenses.
It's important to note that this gross profit figure does not account for other operating income, franchise fees, royalty fees, supplier commissions, marketing fund contributions, or other fees, which are listed separately in the provided table. A franchisee needs to consider these additional expenses and income sources to determine the overall profitability of the franchise.