What rights does an individual franchise agreement grant to a Batteries Plus Bulbs franchisee?
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 Batteries Plus Bulbs's 2025 Franchise Disclosure Document, 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 gains the authority to establish and manage a single Batteries Plus Bulbs location within a specific geographic area.
In contrast, a multiple-unit franchise agreement allows a franchisee to develop and own a predetermined number of Batteries Plus Bulbs stores within a defined geographic area, following a set development schedule. The fees associated with the individual franchise agreement, as well as a portion of the fees for multiple-unit agreements, are due upon execution of the agreement and are nonrefundable. The remaining fees for multiple-unit agreements are payable upon the execution of each individual store's franchise agreement as it is developed.
This distinction between individual and multiple-unit agreements is important for prospective franchisees to understand. An individual agreement is suitable for those looking to operate a single store, while a multiple-unit agreement is designed for those interested in expanding their business with multiple locations. The payment structure also differs, with multiple-unit agreements requiring staged payments as each store is developed.