Does Batteries Plus Bulbs have a tax sharing agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
s. Accordingly, the Company's taxable income is reported on the income tax return of Holdings and the two companies are not subject to
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2024 and 2023 (Dollars in thousands, except per share amounts)
a tax sharing agreement. In addition, the Company is subject to various income taxes and surcharges in states with franchised stores, and in China and Hong Kong with respect to its wholly owned subsidiaries, whose tax expense and attributes are not material.
As required by the uncertain tax position guidance, Holdings recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.
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 does not have a tax sharing agreement. The FDD states that the company is subject to various income taxes and surcharges in states with franchised stores, as well as in China and Hong Kong with respect to its wholly-owned subsidiaries. However, the tax expense and attributes from these foreign entities are not considered material.
This means that individual Batteries Plus Bulbs franchisees are responsible for their own tax obligations and liabilities. Batteries Plus Bulbs will not share tax burdens or benefits with its franchisees. Franchisees should consult with a tax professional to understand their specific tax obligations as business owners.
Batteries Plus Bulbs also collects sales tax from certain customers and remits the entire amount to the appropriate governmental entities. The company's accounting policy is to exclude the tax collected and remitted from merchandise sales and cost of merchandise sold.