Are the rights of Batteries Plus Bulbs subject to limitation or review?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Rights Reserved To Franchisor. Franchisor (for itself and its affiliates) retains the right:
-
- to itself operate, and to grant other persons the right to locate and operate, Batteries Plus® stores at locations outside the Protected Area (except to the extent Franchisor may be restricted under a separate Batteries Plus® Multiple Unit Franchise Agreement or Franchise Agreement to which Franchisee is a party);
-
- to sell the products and services authorized for sale at Batteries Plus® stores under trademarks and service marks other than the Licensed Marks through similar or dissimilar channels of distribution;
-
- subject to Franchisee's limited rights respecting Qualified E-Commerce Transactions as further described in Section 2(C) above, to sell the products
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the rights granted to franchisees are subject to certain limitations and rights retained by Batteries Plus Bulbs. Batteries Plus Bulbs retains the right to operate its own stores or grant others the right to operate Batteries Plus Bulbs stores outside the franchisee's protected area. They can also sell products and services under different trademarks through various channels of distribution. Additionally, Batteries Plus Bulbs can sell products and services authorized for sale at Batteries Plus Bulbs stores through dissimilar channels of distribution, such as the internet. Batteries Plus Bulbs also retains the right to advertise the system on the internet and manage its websites.
For franchisees, this means that while they are granted a franchise to operate a Batteries Plus Bulbs store within a protected area, this right is not absolute. Batteries Plus Bulbs can still operate or franchise other stores outside this area, and can also sell similar products and services through other channels, potentially competing with the franchisee. The franchisee's rights are also limited to operating a store at an approved site and using the licensed marks only at that store. They cannot sell products or services identified by the licensed marks through other channels of distribution, including the internet, except for specific e-commerce transactions assigned to them by Batteries Plus Bulbs.
These limitations are fairly typical in franchising, as franchisors need to maintain control over their brand and distribution channels. However, prospective Batteries Plus Bulbs franchisees should carefully consider these limitations and how they might impact their business. It is important to understand the scope of the protected area and the potential for competition from other Batteries Plus Bulbs channels. Franchisees should also be aware that they cannot subfranchise or sublicense their rights and must operate the store solely as a Batteries Plus Bulbs store.