Under the Batteries Plus Bulbs agreement, what is the relationship between a 'Store' and a 'Franchise Agreement'?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Store. "Store" means a Batteries Plus® store offering a full line of batteries, light bulbs and related products, together with device repair, key fob repair and replacement, and other services, that Multiple Unit Franchisee has developed and operates or will develop and operate under a Franchise Agreement.
2. USE OF SYSTEM
Multiple Unit Franchisee acknowledges, and does not contest, Franchisor's exclusive ownership and rights to each and every aspect of the System, as Franchisor may, in the future, modify or further develop. Multiple Unit Franchisee's right to use the System is specifically limited to the provisions of this Agreement and the Franchise Agreements for individual Stores executed by the parties hereto, and is subject to the supervision and control of Franchisor.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, a 'Store' is defined as a Batteries Plus Bulbs retail location that offers batteries, light bulbs, related products, device repair, key fob repair and replacement, and other services. The critical element is that the store must be developed and operated under a 'Franchise Agreement'. This means that each Batteries Plus Bulbs store requires its own individual franchise agreement to be legally operated under the Batteries Plus Bulbs system.
For a prospective franchisee, this definition clarifies that simply having a multi-unit development agreement does not automatically grant the right to open stores. Each store requires a separate franchise agreement, outlining the specific terms and conditions for that location. This ensures that Batteries Plus Bulbs maintains control over the standards and operations of each individual store within the franchise network.
Furthermore, the FDD states that a franchisee's right to use the Batteries Plus Bulbs system is limited to the provisions outlined in both the overall agreement and the individual Franchise Agreements executed for each store. This highlights the importance of carefully reviewing both the main franchise agreement and the store-specific agreement to fully understand the franchisee's rights and obligations. Batteries Plus Bulbs retains the right to modify or further develop the system, and the franchisee's use of the system is subject to the franchisor's supervision and control.