factual

Which sections of the Batteries Plus Bulbs Franchise Agreement detail the franchisee's fee obligations?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: Contracts]

The transferee-franchisee successfully completes the initial training program required of new franchisees and pays Franchisor the then-current resale training fee;

If required, the lessor of the Store premises consents to Franchisee's assignment or sublease of the premises to the transferee-franchisee;

Franchisee pays Franchisor an assignment fee equal to fifty percent (50%) of Franchisor's then-current standard initial franchise fee applicable to new Batteries Plus® franchisees and, at Franchisor's request, pays Franchisor a prorated Omni-Channel Program access renewal fee;

Franchisee (and each Principal Owner, if applicable) signs a general release, in form and substance satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates, officers, directors, employees and agents, except to the extent limited or prohibited by applicable law;

Unless expressly authorized by Franchisor in writing, the transferee-franchisee and its affiliates collectively will not directly or indirectly own more than six percent (6%) of the total number of Batteries Plus® stores then in operation in the United States, including the Store being transferred hereunder.

Franchisee acknowledges that Franchisor reserves the right to make exceptions to this condition;

Franchisor approves the material provisions of the assignment or sale of assets which assignment or sale cannot permit Franchisee to retain a security interest in this Agreement or any other intangible asset; and

  1. Franchisee (and each Principal Owners, if applicable) signs an agreement, in form satisfactory to Franchisor, in which Franchisee and each Principal Owner covenants to observe the post-termination covenant not to compete and all other applicable post-termination obligations.

Franchisor may expand upon, and provide more details related to, the conditions for transfer and Franchisor's consent as described in this Section 15(C), and may do so in the Operations Manual or otherwise in writing.

Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)

What This Means (2025 FDD)

I am unable to provide specific sections of the Batteries Plus Bulbs Franchise Agreement that detail all franchisee fee obligations, according to the 2025 Franchise Disclosure Document excerpts provided. While Item 22 includes various contract-related details, it does not comprehensively list or describe all the sections within the Franchise Agreement that outline the franchisee's fee obligations. A prospective franchisee should carefully review the full Franchise Agreement and consult with a legal and financial advisor to fully understand all fee obligations. It would be prudent to ask the franchisor for a complete list of sections related to fees within the Franchise Agreement.

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.