Under what condition can Batteries Plus Bulbs Franchisor withdraw approval of a site?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Multiple Unit Franchisee delivers to Franchisor a complete site report (containing demographic, commercial, and other information and photographs as Franchisor reasonably requires) for each site at which Multiple Unit Franchisee proposes to establish and operate a Store and which Multiple Unit Franchisee reasonably believes to comply with site selection criteria established by Franchisor.
The proposed site is subject to Franchisor's prior written acceptance, which will not be unreasonably withheld.
In accepting or rejecting any proposed site, Franchisor will consider demographic characteristics of the proposed site, traffic patterns, parking, the predominant character of the neighborhood, competition from auto parts and auto service stores, the proximity to other businesses (including other Batteries Plus stores), the nature of other businesses in proximity to the site, and other commercial characteristics and the size of premises, appearance, and other physical characteristics.
Franchisor's acceptance of a proposed Store site does not represent a warranty or representation of any kind as to the suitability of the proposed location for a Batteries Plus® store.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Batteries Plus Bulbs franchisor's ability to withdraw site approval is not explicitly detailed. However, the FDD does state that the proposed site is subject to the Franchisor's prior written acceptance, which will not be unreasonably withheld.
The document outlines several factors that Batteries Plus Bulbs will consider when accepting or rejecting a proposed site, including demographic characteristics, traffic patterns, parking, the neighborhood's character, competition from auto parts and service stores, proximity to other businesses (including other Batteries Plus stores), the nature of nearby businesses, and the size, appearance, and physical characteristics of the premises. The franchisor's acceptance of a site does not constitute a warranty or representation of the location's suitability for a Batteries Plus Bulbs store.
While the FDD details the conditions under which Batteries Plus Bulbs grants franchises to multiple-unit franchisees, including site report requirements and financial capability criteria, it does not specify the circumstances under which the franchisor can withdraw an already-granted site approval. A prospective franchisee should seek clarification from the franchisor regarding the specific conditions under which a site approval can be withdrawn to fully understand the risks and obligations involved.