What was the total amount of 'Member’s equity' for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 | |
| Total current assets | 102,061 | 106,235 | |
| Property and equipment | |||
| Furniture, fixtures and equipment | 15,913 | 14,383 | |
| Vehicles | 1,841 | 1,740 | |
| Leasehold improvements | 5,118 | 4,739 | |
| Software | 26,733 | 23,913 | |
| Finance lease right-of-use assets | 502 50,107 | 220 44,995 | |
| Accumulated depreciation | (29,978) | (24,213) | |
| Construction in process | 1,196 | 346 | |
| Total property and equipment | 21,325 | 21,128 | |
| Other assets | |||
| Goodwill, net | 35,709 | 25,051 | |
| Other intangible assets, net | 210,372 | 225,292 | |
| Operating lease right-of-use assets, net | 57,761 | 52,047 | |
| Notes receivable | 154 | 184 | |
| Total other assets | 303,996 | 302,574 | |
| LIABILITIES AND MEMBER’S EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ 40,401 | $ 33,297 | |
| Accrued salaries and benefits | 4,928 | 3,618 | |
| Current portion of note payable - store repurchase | 4,050 | - | |
| Accrued warranty | 3,123 | 3,032 | |
| Other accrued expenses | 2,848 | 3,379 | |
| Due to franchisees | 395 | 380 | |
| Current portion of operating lease liabilities | 6,359 | 5,582 | |
| Current portion of finance lease liability | 99 | 44 | |
| Current portion of contract liability | 512 | 1,073 | |
| Total current liabilities | 62,715 | 50,405 | |
| Non-current liabilities | |||
| Finance lease liability, less current portion | 275 | 131 | |
| Contract termination | 188 | 172 | |
| Note payable - store repurchase | 400 | - | |
| Contract liability, less current portion | 8,223 | 7,319 | |
| Operating lease liabilities, less current portion | 53,596 | 48,345 | |
| Total non-current liabilities | 62,682 | 55,967 | |
| Member’s equity | 301,985 | 323,565 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the total member's equity in 2024 was $301,985. This figure represents the ownership stake of the members in the company, calculated as the difference between the company's assets and its liabilities at the end of the year. It is a key indicator of the financial health and stability of Batteries Plus Bulbs.
For a prospective franchisee, understanding the member's equity is crucial as it reflects the financial foundation of the franchisor. A higher member's equity generally indicates a stronger, more stable franchisor, which can provide better support and resources to its franchisees. Conversely, a lower or declining member's equity might raise concerns about the franchisor's ability to invest in the brand, provide necessary services, or navigate economic challenges.
It is important to note that member's equity can be influenced by various factors, including net income, distributions to members, and other comprehensive income or losses. In the case of Batteries Plus Bulbs, the member's equity decreased from $323,565 in 2023 to $301,985 in 2024. This decrease was influenced by factors such as distributions to members totaling $43,424 and a foreign currency translation loss of $30, offset by a net income of $21,345 and stock-based compensation of $529. A prospective franchisee should investigate the reasons behind changes in member's equity to assess the long-term financial prospects of the franchise.
When evaluating a franchise opportunity, it is advisable to compare the franchisor's member's equity with industry benchmarks and to analyze the trends over several years. This can provide a more comprehensive understanding of the franchisor's financial strength and its ability to support its franchisees. Additionally, prospective franchisees should seek professional financial advice to interpret these figures in the context of their own investment goals and risk tolerance.