What was the total value of cash and cash equivalents held by Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Batteries Plus provides franchisees with a system of business training, site location, marketing, advertising programs and management support designed to assist the franchisee in opening and operating a Batteries Plus store.
Ascent operates a supply chain which purchases, warehouses and distributes inventory for the Batteries Plus owned and franchised stores.
Hong Kong and Shenzhen are utilized by Ascent and Batteries Plus to source inventory.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
December 31, 2024 and 2023 (Dollars in thousands, except per share amounts)
NOTE B - SUMMARY OF ACCOUNTING POLICIES
Use of Estimates
Management uses estimates and assumptions in preparing the consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all petty cash and checking accounts to be cash and short-term investments with original maturities of three months or less when purchased to be cash equivalents.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements for Batteries Plus Bulbs do not explicitly state the total value of cash and cash equivalents held in 2023. However, the document does define 'Cash and Cash Equivalents' in Note B - Summary of Accounting Policies as 'all petty cash and checking accounts to be cash and short-term investments with original maturities of three months or less when purchased to be cash equivalents.'
While the exact figure is not provided, the FDD does mention instances where cash was used for specific transactions. For example, in 2023, Batteries Plus Bulbs acquired the operating assets of four franchised stores using available cash on-hand. Additionally, in 2022, $2,362 (in thousands) was cash used for store acquisitions, and $464 (in thousands) was cash from the sale of corporate-owned stores. These figures indicate that Batteries Plus Bulbs actively manages and utilizes its cash reserves for strategic acquisitions and divestitures.
A prospective franchisee should inquire directly with Batteries Plus Bulbs about the company's cash and cash equivalents position for 2023 to gain a clearer understanding of the company's financial health and liquidity. Understanding the levels of cash and cash equivalents that Batteries Plus Bulbs maintains can provide insight into their financial stability and ability to support franchisees.