To whom is the Retail Management System fee paid for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
TIAL INVESTMENT (See Note 1)**
| Type of Expenditure | Amount (See Note 2) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Prior to Site Build Out | ||||
| Initial Franchise Fee See Note 3 | $15,000 to $44,500 | Lump Sum | When you sign the Franchise Agreement | Batteries |
| Travel and Living Expenses during Training See Note 4 | $500 to $2,900 | As Incurred | Before Opening | Various Third Parties |
| New Store Commercial | $0 to $3,450 | As Incurred | As Incurred | Batteries |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the Retail Management System fee, estimated at $38,986, is paid in a lump sum as incurred to both Batteries Plus Bulbs and various suppliers. This fee covers the cost of the Retail Management System software and hardware that Batteries Plus Bulbs has selected for use in the store, including computer access and Retail Management System development fees.
This means that a portion of the $38,986 is remitted directly to Batteries Plus Bulbs, while the remaining portion is paid to the suppliers of the software and hardware components of the Retail Management System. It is important for prospective franchisees to understand this breakdown, as it affects their relationships with both the franchisor and its approved vendors. Franchisees should confirm with Batteries Plus Bulbs which specific suppliers are involved and the payment allocation to each party.
Understanding the specifics of these payments is crucial for budgeting and financial planning. Franchisees should also inquire about any potential changes to the Retail Management System, associated costs, and whether they have any flexibility in choosing suppliers, even if they must be approved by Batteries Plus Bulbs. This ensures transparency and helps franchisees make informed decisions about their investment.