factual

What does Section 2 of the Batteries Plus Bulbs Franchise Agreement, 'Grant of Franchise', cover?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

2. GRANT OF FRANCHISE

  • A.

Grant Of Franchise, Store Location And Protected Area.

Subject to the provisions contained in this Agreement, Franchisor grants Franchisee a franchise (the "Franchise") to own and operate a Batteries Plus® Store at a site approved by Franchisor and to use the Licensed Marks in operating the Store.

Source: Item 22 — Contracts (FDD page 80)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Section 2(A) of the Franchise Agreement, titled 'Grant Of Franchise, Store Location And Protected Area,' outlines the specifics of the franchise granted to the franchisee. It states that, subject to the agreement's provisions, Batteries Plus Bulbs grants the franchisee the right to own and operate a Batteries Plus Bulbs store at an approved location and to use the Licensed Marks in operating the store.

The agreement also addresses the store's location and the franchisee's protected area. Exhibit A of the Franchise Agreement identifies the store location and protected area. Alternatively, Batteries Plus Bulbs and the franchisee can complete and sign Alternative Exhibit A, agreeing on a geographic area for the store's location. This must be done at least 150 days before the scheduled store opening date. However, the initial designation of a geographic area in Alternative Exhibit A does not grant the franchisee any territorial rights, and Batteries Plus Bulbs retains the right to operate or franchise other stores within that area.

Once Batteries Plus Bulbs approves a specific location within the agreed-upon geographic area, Exhibit A will be updated to identify the franchisee's Protected Area. During the term of the agreement, and provided the franchisee is in compliance, Batteries Plus Bulbs will not directly operate or franchise another full-service Batteries Plus Bulbs store within the Protected Area. The franchise is personal and only applies to the approved store location. The franchisee cannot sell products or services using the Licensed Marks outside of the store or through other distribution channels, including the Internet. The franchisee is also prohibited from opening any other Batteries Plus Bulbs stores within the Protected Area and cannot subfranchise or sublicense any rights under the agreement. The store must only be used for the operation of a Batteries Plus Bulbs store.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.