What were the royalty fees collected by Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
rent portion of contract liability | 1,073 | 1,372 | | | | Total current liabilities | 50,405 | 44,649 | | Non-current liabilities | | | | | Finance lease liability, less current portion | 131 | - | | | Contract termination | 172 | 268 | | | Contract liability, less current portion | 7,319 | 7,211 | | | Operating lease liabilities, less current portion | 48,345 | 44,755 | | | | Total non-current liabilities | 55,967 | 52,234 | | Member’s equity | 323,565 | 332,251 | | | | Total liabilities and member’s equity | $ 429,937 | $ 429,134 |
REACQUIRED BY THE FRANCHISOR (PURCHASED)
| 2023 | 2022 | ||
|---|---|---|---|
| Merchandise sales | $ 268,600 | $ 283,671 | |
| Cost of merchandise sold | 160,260 | 171,838 | |
| Gross profit | 108,340 | 111,833 | |
| Other operating income | |||
| Franchise fees | 1,895 | 1,718 | |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the royalty fees collected in 2024 amounted to $23,377. This figure reflects the income Batteries Plus Bulbs received from its franchisees based on a percentage of their sales. Royalty fees are a standard component of franchise agreements and serve as ongoing compensation for the use of the Batteries Plus Bulbs brand name, operating systems, and support services.
For a prospective franchisee, understanding the royalty fee structure is crucial. It represents a recurring expense that will impact the store's profitability. The $23,377 collected in 2024 indicates the scale of royalty payments within the Batteries Plus Bulbs franchise system. However, it is important to note that this is an aggregate number; individual franchisees' royalty payments would vary depending on their gross sales.
It is important for potential franchisees to carefully review Item 6 of the FDD, which details the specific formula used to calculate royalty fees. This will allow them to project their own royalty obligations based on anticipated sales volume. Additionally, franchisees should inquire about any potential changes to the royalty structure in the future, as these could impact their long-term financial planning. Understanding how royalty fees are used by Batteries Plus Bulbs to support the franchise network is also a key consideration.