What was the total amount spent on depreciation for Batteries Plus Bulbs in 2024?

According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the total depreciation expense for the year 2024 was $5,865. This figure represents the accounting method of allocating the cost of tangible assets over their useful life. Depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash during the period; rather, it reflects the reduction in the value of assets like equipment and buildings due to wear and tear, obsolescence, or other factors.

For a prospective Batteries Plus Bulbs franchisee, understanding depreciation is crucial for assessing the true profitability and cash flow of the business. While depreciation reduces the net income reported on the income statement, it also lowers the tax liability, as it is a deductible expense. This can have a positive impact on the franchisee's overall financial performance by reducing the amount of income taxes owed.

It's important to note that depreciation is just one aspect of the overall financial picture. Franchisees should also consider other factors such as revenue, cost of goods sold, operating expenses, and capital expenditures when evaluating the financial health of their Batteries Plus Bulbs franchise. Reviewing the complete financial statements and understanding the underlying accounting principles will provide a more comprehensive view of the business's performance and potential for success.