Who is responsible for penalties associated with electronic fund transfers for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will maintain a balance in its accounts sufficient to allow Franchisor to collect the amounts owed to it when due.
Franchisee will be responsible for any penalties, fines or similar expenses associated with the transfer of funds described herein.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the franchisee is responsible for any penalties, fines, or similar expenses associated with electronic fund transfers. This means that if a franchisee incurs penalties due to insufficient funds or other issues related to the electronic transfer of payments to Batteries Plus Bulbs, the franchisee will bear the cost.
This condition underscores the importance of franchisees maintaining sufficient balances in their accounts to cover all payments due to Batteries Plus Bulbs. Franchisees need to ensure they have enough funds available to avoid these penalties.
This is a fairly standard practice in franchising, where franchisees are generally responsible for their own financial management and any associated penalties. Batteries Plus Bulbs also has the right to charge interest on late payments, so franchisees should prioritize timely payments to avoid additional costs.