To whom are all supplier rebates currently assigned within the Batteries Plus Bulbs system?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Ascent and Batteries may receive rebates and other payments from approved third party suppliers. In fiscal year 2024, the rebates and other payments Batteries or Ascent received from suppliers ranged from less than 1% up to 18% of the price franchisees paid suppliers for those items. All supplier rebates currently are assigned to Ascent.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, all supplier rebates are currently assigned to Ascent. Ascent is an affiliate of Batteries Plus Bulbs. In fiscal year 2024, rebates and other payments that Batteries Plus Bulbs or Ascent received from suppliers ranged from less than 1% up to 18% of the price franchisees paid to the suppliers for those items.
This arrangement means that while franchisees are required to purchase certain products from approved suppliers, any rebates negotiated with those suppliers do not directly benefit the franchisees. Instead, these rebates are channeled to Ascent, an affiliated entity. This could impact a franchisee's profitability, as they are essentially paying the full price for goods without directly receiving the financial benefit of any supplier rebates.
It is important for prospective franchisees to understand the relationship between Batteries Plus Bulbs and Ascent, particularly how Ascent functions within the supply chain and how it benefits from supplier rebates. While the FDD discloses that one or more officers of Batteries Plus Bulbs have an indirect interest in Ascent, franchisees should seek further clarification on how this relationship is managed and whether it creates any potential conflicts of interest. Understanding the financial implications of this arrangement is crucial for assessing the overall profitability and fairness of the franchise opportunity.
Franchisees should also inquire about the criteria used to select approved suppliers and negotiate rebate agreements. Transparency in these processes can help franchisees feel more confident that the supply chain is managed in a way that is beneficial to the entire Batteries Plus Bulbs system, not just Ascent.