How is the supply chain program designed to benefit Batteries Plus Bulbs franchisees?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
nd the device to Ascent for repair.
We have established a supply chain program, through Ascent, that is designed to make available to you and other Batteries Plus® franchisees quality private label and branded batteries, light bulbs, repair components and related products as well as certain services. Ascent negotiates supply contracts for the manufacture of our private label and branded batteries, light bulbs, repair components and related products. Ascent then arranges for the acquisition and distribution of these products to Batteries Plus® franchisees directly or through approved third-party suppliers. You will be required to pay for products purchased from Ascent by electronic transfer of funds. Ascent may purchase products directly and resell them to franchisees at a higher price.
Recycling Services
We have identified East Penn, Gopher Smelting, RSR & Sanders Lead as our currently approved suppliers for SLI batteries recycling. We have designated Battery Solutions, LLC ("Battery Solutions") as our preferred supplier for other battery recycling. Battery Solutions offers a box and a pallet program to commercial establishments in which to place used batteries for recycling. We have designated Veolia ES Technical Solutions ("Veolia") as our preferred supplier for light bulb and ballast recycling. Veolia offers a box and a pallet program to commercial establishments in which to place used light bulbs for recycling.
Location of your Store; Real Estate Lease
You must locate a site for your Store that we consent to, and you may not sign a lease for the site until we have given our consent in writing. We accept locations on a case by case basis, considering items such as size, appearance and other physical characteristics of the site, demographic characteristics, traffic patterns, competition from other businesses in the area and other commercial characteristics, such as rental obligations and other lease terms (including those that we require be in the lease). You are not required to purchase, lease or sublease the Store premises from us or our affiliate.
Fixtures, Equipment, Furniture & Signs
You must construct and develop your Store. We will furnish to you prototypical drawings and specifications for your Store, including requirements for interior and exterior materials, decor, fixtures, equipment, furniture and signs. You must meet our specifications and standards in developing your Store. You must submit construction plans and specifications to us for our approval before you begin construction of your Store, and you must submit all revised plans and specifications to us during the course of construction. You must ensure that the plans and specifications comply with the Americans With Disabilities Act and all other applicable federal, state and local laws, ordinances, building code and permit requirements and lease requirements and restrictions. If you must modify the prototypical drawings for your Store to comply with local laws or restrictions, you must engage, at your expense, an architect to modify the prototypical drawings to comply with those laws and provide us with a copy of the proposed modifications for our approval. In developing and operating your Store, you may purchase only the types of construction and decorating materials, fixtures, equipment, furniture and signs that we require and have approved as meeting our specifications and standards for quality, design, appearance, function and performance.
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, the supply chain program, managed through Ascent, aims to provide franchisees with access to quality private label and branded batteries, light bulbs, repair components, and related services. Ascent negotiates supply contracts for these products and arranges for their acquisition and distribution to Batteries Plus Bulbs franchisees, either directly or through approved third-party suppliers. This program is designed to ensure franchisees have a consistent and reliable source for essential products. Franchisees are required to pay for products purchased from Ascent via electronic transfer of funds, and Ascent may purchase products directly and resell them to franchisees at a higher price.
Batteries Plus Bulbs also designates specific suppliers for recycling services, such as East Penn, Gopher Smelting, RSR & Sanders Lead for SLI batteries, Battery Solutions, LLC for other battery recycling, and Veolia ES Technical Solutions for light bulb and ballast recycling. These suppliers offer box and pallet programs for commercial establishments to recycle used batteries and light bulbs. This standardization helps franchisees manage recycling efficiently and in compliance with regulations.
While Batteries Plus Bulbs negotiates prices for numerous products, it's important to note that this negotiation is not specifically for the benefit of any individual franchisee, but rather for the system as a whole. The FDD indicates that Ascent and Batteries Plus Bulbs received significant gross revenue from franchisee purchases in fiscal year 2024. Batteries Plus Bulbs received approximately $18,740,000, and Ascent received approximately $158,760,000, totaling $177,500,000, which represented 53.7% of their total gross revenues of $330,516,000. This highlights the importance of the supply chain to the overall revenue of the Batteries Plus Bulbs system. Ascent may also receive rebates from approved third-party suppliers, ranging from less than 1% up to 18% of the price franchisees paid suppliers for those items in fiscal year 2024; all supplier rebates are currently assigned to Ascent.
Prospective franchisees should be aware that they are required to purchase certain products and services from designated or approved suppliers to maintain uniformity and quality within the Batteries Plus Bulbs system. Although the supply chain program aims to provide quality products, franchisees should carefully evaluate the pricing and terms to ensure they are competitive and beneficial for their individual business needs. Additionally, the indirect interest of Batteries Plus Bulbs officers in Ascent should be considered, as it may influence the supply chain dynamics.