What standards must a transferee-franchisee meet to be approved by Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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
- 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 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, a transferee-franchisee must meet several requirements to be approved. The transferee-franchisee must successfully complete the initial training program required of new franchisees and pay the then-current resale training fee. If required, the lessor of the store premises must consent to the assignment or sublease of the premises to the transferee-franchisee. The franchisee must pay Batteries Plus Bulbs an assignment fee equal to 50% of the then-current standard initial franchise fee applicable to new Batteries Plus Bulbs franchisees and, at Batteries Plus Bulbs' request, pay a prorated Omni-Channel Program access renewal fee.
Additionally, the franchisee (and each Principal Owner, if applicable) must sign a general release, in a form and substance satisfactory to Batteries Plus Bulbs, of any and all claims against Batteries Plus Bulbs and its affiliates, officers, directors, employees, and agents, except to the extent limited or prohibited by applicable law. Unless expressly authorized by Batteries Plus Bulbs in writing, the transferee-franchisee and its affiliates collectively will not directly or indirectly own more than 6% of the total number of Batteries Plus Bulbs stores then in operation in the United States, including the store being transferred. Batteries Plus Bulbs reserves the right to make exceptions to this condition.
Batteries Plus Bulbs must approve the material provisions of the assignment or sale of assets, which assignment or sale cannot permit the franchisee to retain a security interest in the agreement or any other intangible asset. The franchisee (and each Principal Owner, if applicable) must sign an agreement, in a form satisfactory to Batteries Plus Bulbs, in which the franchisee and each Principal Owner covenants to observe the post-termination covenant not to compete and all other applicable post-termination obligations. Batteries Plus Bulbs may expand upon, and provide more details related to, the conditions for transfer and Batteries Plus Bulbs' consent as described in this Section 15(C), and may do so in the Operations Manual or otherwise in writing.