What is the section number in the Batteries Plus Bulbs Franchise Agreement that covers 'Assignment'?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
15. ASSIGNMENT
- A. By The Franchisor. This Agreement is fully assignable by Franchisor and benefits Franchisor's successors and assigns. Any such assignment will require the assignee to fulfill Franchisor's obligations under this Agreement. Franchisor reserves the right to outsource or assign any of its obligations under this Agreement to an affiliate or third party without Franchisee's consent.
- B. Franchisee Assignment To Corporation Or Limited Liability Company. Franchisee (as an individual) may assign this Agreement to a corporation or a limited liability company that conducts no business other than the Store (or other Batteries Plus® stores under franchise agreements with Franchisor), provided: (1) the Store is actively managed by Franchisee or an operating manager approved by Franchisor; (2) Franchisee owns at least seventy percent (70%) of the ownership interest in the corporation or limited liability company; (3) Franchisee and all Principal Owners of the assignee entity sign the Guaranty Agreement attached hereto as Exhibit E; (4) Franchisee provides Franchisor fifteen (15) days' written notice before the proposed date of assignment of this Agreement to the corporation or limited liability company; (5) Franchisee provides to Franchisor a certified copy of the articles of incorporation, operation agreement, organizational documents, a list of all shareholders or members having beneficial ownership, reflecting their respective interest in the assignee entity; and (6) the organizational documents and all issued and outstanding stock or membership certificates will bear a legend, in form acceptable to Franchisor, reflecting or referring to the assignment restrictions stated in Section 15(C) below. Franchisee will not pay a transfer fee for an assignment under Section 15(B).
- C. Franchisee Assignment Or Sale of Substantially All Of Its Assets. Franchisee understands that Franchisor has granted the Franchise under this Agreement in reliance upon Franchisee's individual or
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Section 15 of the franchise agreement outlines the conditions regarding assignment of the agreement. This section details the circumstances under which both the franchisor and the franchisee can assign their rights and obligations under the agreement to another party.
Specifically, Section 15(A) states that Batteries Plus Bulbs as the franchisor has the right to fully assign the agreement to another party, including outsourcing obligations to affiliates or third parties, without needing the franchisee's consent. Section 15(B) describes the conditions under which a franchisee can assign the agreement to a corporation or limited liability company, including requirements for ownership percentage, active management, and providing notice to Batteries Plus Bulbs.
Section 15(C) further addresses the conditions for a franchisee assigning or selling substantially all of its assets, including obtaining franchisor consent, completing training, paying fees, and signing releases. These provisions are typical in franchise agreements to ensure that any new franchisee meets the franchisor's standards and that the transfer process protects the integrity of the Batteries Plus Bulbs brand and system.