Did Batteries Plus Bulbs have any short-term leases in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
teries Plus recognizes stock-based compensation cost using fair value provisions prescribed on a straight-line basis over the vesting period for stock options issued. This expense is allocated from options granted by BPB.
Fair Value Measurement of Financial Instruments
Based on the Company estimates, the carrying amounts of cash, cash equivalents, receivables, prepaid expenses, due to or from marketing funds, accounts payable, accrued expenses, current portion of capital lease obligation, current portion of contract liability, and due to or from franchisees, because of their short-term nature, approximated fair val
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the company's accounting policy considers investments with original maturities of three months or less to be cash equivalents. Additionally, the document states that the carrying amounts of cash, cash equivalents, receivables, prepaid expenses, amounts due to or from marketing funds and franchisees, accounts payable, accrued expenses, current portion of capital lease obligation, and current portion of contract liability approximate fair value because of their short-term nature as of December 31, 2024 and 2023.
This implies that Batteries Plus Bulbs manages its short-term assets and liabilities, including those with maturities under three months, in a way that their book value closely reflects their actual market value. This is a common accounting practice, especially for liquid assets and short-term obligations.
However, the document does not explicitly state whether Batteries Plus Bulbs entered into any short-term leases during 2023. While it discusses the general accounting treatment of leases under ASC Topic 842, it does not provide specific details about the duration or volume of lease agreements the company engaged in during that year. A prospective franchisee should ask the franchisor for specific details regarding short-term lease obligations.