Does the restriction on competitive businesses for Batteries Plus Bulbs extend to any device repair services?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
red for local store promotion under Section 11(B) above. The foregoing remedies are in addition to all other remedies and rights of Franchisor under applicable law.
14. COVENANTS
- A. Non-Solicitation Of Customers. Franchisee covenants that, during the term of this Agreement, and for a period of two (2) years thereafter, Franchisee will not, directly or indirectly divert or attempt to divert any business, account or customer of the Store or any other Batteries Plus® stores or the System to any competing business.
- B. Covenant Not To Compete During Term. Franchisee (and each Principal Owner) will not, during the term of this Agreement, directly or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, having any interest in, or assist any person or entity engaged in any business (including any e-commerce or internet-based business) that distributes, sells or otherwise deals in, at wholesale or retail, any battery, light bulb or related products, any device repair, key fob repair or replacement, or other services offered at a Batteries Plus® store, or any other related business that is competitive with or similar to a Batteries Plus® store, except: (i) with Franchisor's prior written consent; or (ii) the ownership of securities listed on a stock exchange or traded on the over-the-counter market that represent one percent (1%) or less of that class of securities.
- C. Post-Term Covenant Not To Compete. Franchisee (and each Principal Owner) will not, for a period of two (2) years after this Agreement expires or is terminated or the date on which Franchisee ceases to conduct the business franchised under this Agreement, whichever is later, directly or as an
employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, having any interest in, or assist any person or entity engaged in any business that distributes, sells or otherwise deals in, at wholesale or retail, any battery, light bulb or related products, any device repair, key fob repair or replacement, or other services offered at a Batteries Plus® store, or any other related business that is competitive with or similar to a Batteries Plus® store that is located at the Store or within a fifteen (15) mile radius of the former site of the Store or any other then existing Batteries Plus® store; provided, however, that this Section 14(C) will not apply to: (i) other stores that Franchisee operates under a franchise agreement with us; or (ii) the ownership of securities listed on a stock exchange or traded on the over-thecounter market that represent one percent (1%) or less of that class of securities. For purposes of this Section, any form of e-commerce business or website that distributes, sells or otherwise deals in, at wholesale or retail, any battery, light bulb or related products or any device repair, key fob repair or replacement, or other services offered at a Batteries Plus® store, or any other related business that is competitive with or similar to a Batteries Plus® store will be in violation of this provision if such ecommerce business or website offers, sells or otherwise makes its products or services available to individuals residing within or businesses located within fifteen (15) mile radius of the former site of the Store or any other then-existing Batteries Plus® store. Franchisee agrees that the length of time in this Section 14(C) will be tolled for any period during which Franchisee is in breach of the covenants or any other period during which Franchisor seeks to enforce this Agreement.
D. Injunctive Relief. Franchisee agrees that damages alone cannot adequately compensate Franchisor if there is a violation of any covenant in this Section in that injunctive relief is essential for the protection of Franchisor.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the restrictions on competitive businesses do extend to device repair services. During the term of the Franchise Agreement and for two years after, franchisees are restricted from engaging in any business that offers device repair, key fob repair or replacement, or other services offered at a Batteries Plus Bulbs store. This includes being involved as an employee, agent, consultant, partner, officer, director, or shareholder of any entity engaged in such a business.
This restriction applies to businesses within a fifteen (15) mile radius of the former Batteries Plus Bulbs store location or any other existing Batteries Plus Bulbs store. The definition of a "Competing Business" specifically includes those that distribute, sell, or deal in device repair, key fob repair or replacement, or other services offered by Batteries Plus Bulbs. This also extends to e-commerce businesses or websites that offer these products or services to individuals or businesses within the specified radius.
For a prospective franchisee, this means that they cannot operate or be involved with any competing business that offers device repair services during the term of their agreement and for two years after. This non-compete clause is fairly standard in franchising to protect the brand and the franchise system. It prevents franchisees from using the knowledge and experience gained while operating a Batteries Plus Bulbs franchise to directly compete with the brand, ensuring that franchisees remain committed to the success of the Batteries Plus Bulbs system.
It is important to note that the restriction does not apply to other stores that the franchisee operates under a franchise agreement with Batteries Plus Bulbs or the ownership of securities listed on a stock exchange or traded on the over-the-counter market that represent one percent (1%) or less of that class of securities. Franchisees should carefully consider these restrictions and how they might impact any existing or future business ventures.