What rights are granted to franchisees under individual franchise agreements with Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus enters into individual and multiple-unit franchise agreements. Individual franchise agreements grant the individual the right to open and operate a franchise store in the franchisee's individual territory. Multiple-unit franchise agreements grant the franchisee the right to establish and own a specified number of Batteries Plus stores within a defined geographic area pursuant to a development schedule. The fees for the individual franchise agreement and a portion of the fees for the multiple-unit franchise agreement are payable upon execution of the agreement and are nonrefundable. The remaining fees for multiple-unit franchise agreements are payable upon execution of the franchise agreement for each store developed pursuant to the multiple unit franchise agreement.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs enters into both individual and multiple-unit franchise agreements. An individual franchise agreement grants the franchisee the right to open and operate a Batteries Plus Bulbs store within their designated territory. This means the franchisee has the exclusive right to operate a store under the Batteries Plus Bulbs brand in a specific geographic area.
In contrast, a multiple-unit franchise agreement allows a franchisee to establish and own a specified number of Batteries Plus Bulbs stores within a defined geographic area, according to a development schedule. This type of agreement is designed for franchisees who want to expand their business by opening multiple locations.
It's important to note that the fees for an individual franchise agreement, as well as a portion of the fees for a multiple-unit franchise agreement, are payable upon execution of the agreement and are nonrefundable. This means that a prospective franchisee must pay these fees upfront, and they will not be refunded if the franchisee later decides not to proceed with the franchise. The remaining fees for multiple-unit franchise agreements are payable upon execution of each individual franchise agreement as each store is developed according to the agreed-upon schedule.