What was the total amount of royalty fees paid to Batteries Plus Bulbs in the first period?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus enters into individual and multiple-unit franchise agreements. Individual franchise agreements grant the individual the right to open and operate a franchise store in the franchisee's individual territory. Multiple-unit franchise agreements grant the franchisee the right to establish and own a specified number of Batteries Plus stores within a defined geographic area pursuant to a development schedule. The fees for the individual franchise agreement and a portion of the fees for the multiple-unit franchise agreement are payable upon execution of the agreement and are nonrefundable. The remaining fees for multiple-unit franchise agreements are payable upon execution of the franchise agreement for each store developed pursuant to the multiple unit franchise agreement.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the document does not explicitly state the total amount of royalty fees paid to Batteries Plus Bulbs in the first period. However, the document does mention how Batteries Plus Bulbs recognizes revenue from franchise, royalty, marketing fund, and other fees. It states that Batteries Plus Bulbs enters into individual and multiple-unit franchise agreements, where fees are payable upon execution of the agreement and are nonrefundable.
To get a clear picture of the royalty fees, a prospective franchisee should ask Batteries Plus Bulbs for detailed financial statements that break down the royalty fees received during specific periods. This information is crucial for understanding the revenue streams and financial performance of the franchise system.
Understanding the royalty fee structure and amounts is essential for assessing the financial viability of a Batteries Plus Bulbs franchise. It allows potential franchisees to accurately forecast their expenses and profitability.