What are Batteries Plus Bulbs' rights if a franchisee fails to cure a default?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described below, Franchisee will have thirty (30) days, or such longer period as applicable law may require, after its receipt from Franchisor of a written notice of default within which to remedy any default hereunder, and to provide evidence thereof to Franchisor.
If Franchisee fails to correct the alleged default within that time, this Agreement will terminate without further notice to Franchisee effective immediately when the thirty (30) day period, or such longer period as applicable law may require, expires.
Upon termination of this Franchise Agreement for any reason, Franchisee's right to use the name "Batteries Plus" and the other Licensed Marks and the System will immediately terminate and Franchisee
(and the Principal Owners) will not in any way associate itself/themselves as being associated with Franchisor. If Franchisee fails to remove all signs and other materials bearing the Licensed Marks, Franchisor may do so at Franchisee's expense.
- B.
Redecoration.
If this Agreement is terminated for any reason, and Franchisee either remains in possession of the premises of the former Store to operate a separate business not in violation of Section 14 above or enters into an agreement with a third party to allow such third party to directly operate a business at the premises of the former Store, Franchisee will, at its expense, modify both the exterior and interior appearance of the business premises so that they will be easily distinguished from the standard appearance of Batteries Plus® stores.
At a minimum, such changes and modifications to the premises will include: (1) repainting the premises with totally different colors; (2) removing all signs and other materials bearing the name "Batteries Plus" and other Licensed Marks; (3) removing from the premises all fixtures which are indicative of Batteries Plus® stores; (4) discontinuing use of the approved employee uniforms and refraining from using any uniforms which are confusingly similar; (5) discontinuing use of all packaging and Confidential Information regarding the operation of the Store; and (6) taking such other action, at Franchisee's expense, as Franchisor may reasonably require.
If Franchisee fails to immediately initiate modifications to the premises of the former Store or completes such modifications with any period of time Franchisor deems appropriate, Franchisee agrees that Franchisor or its designated agents may enter the premises of the former Store to make such modifications, at Franchisee's risk and expense, without responsibility for any actual or consequential damages to Franchisee's property or others, and without liability for trespass or other tort or criminal act.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, if a franchisee fails to correct a default within the specified time frame after receiving written notice, Batteries Plus Bulbs has the right to terminate the franchise agreement. The standard period to remedy a default is thirty days, but this may be extended if applicable law requires a longer period. The termination becomes effective immediately after this period expires, without any further notice needed from Batteries Plus Bulbs.
Batteries Plus Bulbs outlines specific actions it can take upon termination of the Franchise Agreement. The franchisee's right to use the "Batteries Plus" name, Licensed Marks, and the System immediately terminates, and the franchisee must not associate themselves with Batteries Plus Bulbs. If the franchisee does not remove signs and materials bearing the Licensed Marks, Batteries Plus Bulbs has the right to remove them at the franchisee's expense.
Furthermore, if the franchisee continues to occupy the premises of the former store to operate a different business or allows a third party to operate a business there, they must modify the premises to clearly differentiate it from a Batteries Plus Bulbs store. These modifications include repainting with different colors, removing all Batteries Plus Bulbs signs and trademarks, removing fixtures indicative of Batteries Plus Bulbs stores, discontinuing the use of approved employee uniforms, and ceasing the use of all packaging and confidential information related to the store's operation. If the franchisee fails to make these modifications promptly, Batteries Plus Bulbs can enter the premises and make the changes at the franchisee's risk and expense, without liability for damages or trespass.
These stipulations ensure that upon termination, the franchisee takes immediate steps to disassociate from the Batteries Plus Bulbs brand, protecting the integrity and uniformity of the Batteries Plus Bulbs system. The franchisor also has the option to purchase the store.