What was the total value of accrued warranty for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS Current assets Cash and cash equivalents $ Accounts receivable, net Merchandise inventories, net Prepaid expenses Due from marketing fund | 10,716 29,858 56,393 4,426 668 102,061 | $ 26,197 25,763 48,576 4,665 |
|---|---|---|
| 1,034 | ||
| Total current assets | 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 | 220 |
| 50,107 | 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 |
| $ Total assets | 427,382 | $ 429,937 |
| 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 liabili |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the accrued warranty liability in 2024 was $3,123, compared to $3,032 in 2023. This figure represents the estimated cost of fulfilling warranty obligations for products and services already sold.
For a prospective franchisee, the accrued warranty is an important consideration because it reflects a potential financial obligation of Batteries Plus Bulbs. An increase in accrued warranty from one year to the next could indicate a higher volume of warranty claims or a change in the estimated cost of fulfilling those claims. This could be due to a number of factors, such as changes in product quality, service procedures, or warranty terms.
It is important to note that the accrued warranty is an estimate, and the actual cost of fulfilling warranty obligations could be higher or lower. Franchisees should inquire about the warranty policies, claim procedures, and historical warranty costs to better understand this potential liability. Understanding the warranty obligations and associated costs can help a franchisee assess the financial stability and potential profitability of a Batteries Plus Bulbs franchise.