Under what circumstances would Batteries Plus Bulbs charge a management fee?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law | When due | Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries or our affiliates. |
| Management Fee | Up to $500 per day plus cost and overhead | When due | Payable if you are in default under the Franchise Agreement and we elect to operate the Store until the default has been cured. |
| Insurance | Cost of insurance | Payable before opening | If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges. |
| Software Support | Varies, currently $472 per month | Payable monthly | May increase up to 10% each calendar year. See Item 11 |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, a management fee may be charged if a franchisee is in default under the Franchise Agreement. If this occurs, Batteries Plus Bulbs has the option to operate the store until the default is resolved.
The management fee is up to $500 per day, in addition to covering the costs and overhead incurred by Batteries Plus Bulbs while operating the store. This fee is due when invoiced.
This provision is designed to protect Batteries Plus Bulbs in situations where a franchisee's non-compliance could negatively impact the brand or the store's operations. It also incentivizes franchisees to adhere to the terms of the Franchise Agreement to avoid such intervention and associated costs.