Does the Batteries Plus Bulbs supply chain program operate through Ascent?
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.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–32)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the supply chain program for batteries, light bulbs, repair components, and related products and services does operate through Ascent. Batteries Plus Bulbs has established this program to provide franchisees with quality private label and branded products. 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. Franchisees are required to pay Ascent for these products via electronic transfer of funds, and Ascent may purchase products directly and resell them to franchisees at a higher price.
This arrangement means that franchisees are obligated to source certain products through Ascent, ensuring uniformity and quality within the Batteries Plus Bulbs system. However, it also means that franchisees may not be able to negotiate prices independently and are subject to Ascent's pricing, which may include a markup. One or more officers of Batteries Plus Bulbs have an indirect interest in Ascent, which could present a potential conflict of interest, although the FDD does not elaborate on the specifics of this relationship.
In fiscal year 2024, Ascent received approximately $158,760,000 in gross revenue from franchisee purchases of goods, products, and services, and rebates and other payments. This highlights the significant role Ascent plays in the Batteries Plus Bulbs franchise system's financial operations. Batteries Plus Bulbs received approximately $18,740,000 in gross revenue in fiscal year 2024 from franchisee purchases of goods, products and services, and rebates and other payments. On a consolidated basis, Batteries and Ascent received $177,500,000 in gross revenue in fiscal year 2024 from franchisee purchases of goods, products and services, and rebates and other payments as otherwise described in this Item 8, which represented 53.7% of our total gross revenues of $330,516,000.
Prospective franchisees should carefully consider the implications of this supply chain program, including the potential for higher costs and the limited ability to source products from alternative suppliers. It is important to evaluate whether the benefits of a uniform supply chain outweigh the potential drawbacks of reduced purchasing flexibility and potential conflicts of interest.