When is the Royalty and Service Fee due for a Batteries Plus Bulbs franchise?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
The monthly maintenance fee is due at the same time and the same manner as the Royalty and Service Fee.
Franchisor may change or alter the monthly maintenance fee or impose other fees with thirty (30) days' written notice to Franchisee.
For purposes of the Royalty and Service Fee (as defined in Section 9(B) below), the sale is made at the earlier of delivery of the product or service, or receipt of payment.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the monthly maintenance fee for the Omni-Channel Program, set at $200 as of the effective date, is due at the same time and in the same manner as the Royalty and Service Fee. This implies that the Royalty and Service Fee is due monthly.
Franchisees should note that Batteries Plus Bulbs retains the right to modify the monthly maintenance fee or introduce new fees with a 30-day written notice. This provision allows Batteries Plus Bulbs to adjust fees based on market conditions or operational needs, which could impact the franchisee's operating costs. Franchisees need to stay informed of any fee adjustments to accurately manage their finances.
Furthermore, the FDD stipulates that for the purpose of calculating the Royalty and Service Fee, a sale is considered to have occurred at the earlier of the delivery of the product or service, or the receipt of payment. This definition is important for franchisees to understand, as it clarifies when revenue is recognized for royalty calculations, regardless of when actual payment is received. This could affect the timing of royalty payments, especially in cases of delayed payments or service contracts.