What was the total amount of depreciation for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Selling and delivery | 11,435 | 13,755 |
|---|---|---|
| Occupancy | 10,130 | 9,616 |
| General and administrative | 86,987 | 85,402 |
| Advertising | 2,702 | 1,093 |
| Marketing fund | 18,625 | 19,144 |
| Depreciation | 5,328 | 4,518 |
| Amortization | 14,920 | 14,920 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the total depreciation expense for the company in 2023 was $5,328. This figure represents the reduction in the recorded value of the company's assets due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense that reflects the allocation of an asset's cost over its useful life.
For a prospective Batteries Plus Bulbs franchisee, understanding depreciation is important for assessing the financial health and profitability of the franchise. While depreciation itself doesn't involve a direct cash outflow, it impacts the company's net income and, consequently, its tax liability. A higher depreciation expense can reduce taxable income, potentially lowering the amount of taxes the franchisee owes.
It's also worth noting that depreciation is just one component of the overall operating expenses for Batteries Plus Bulbs. Other significant expenses include selling and delivery, occupancy, general and administrative costs, advertising, and marketing fund contributions. Franchisees should carefully analyze all these expenses to get a comprehensive view of the costs associated with running a Batteries Plus Bulbs franchise and to forecast their potential earnings.