Under what conditions can a Batteries Plus Bulbs licensee assign the License Agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
imilar to, a Batteries Plus® store.
16. ASSIGNMENT
- A. By Franchisor. This Agreement is fully assignable by Franchisor and benefits any assignee or other legal successor to the interests of Franchisor. Any such assignment will require the assignee to fulfill Franchisor's obligations under this Agreement. Franchisor reserves the right to outsource or assign any of its obligations under this Agreement to an affiliate or third party without Multiple Unit Franchisee's consent.
- B. Multiple Unit Franchisee Assignment Requiring Consent of Franchisor. Multiple Unit Franchisee understands and acknowledges that the rights and duties created by this Agreement are personal to Multiple Unit Franchisee and that Franchisor has granted this Agreement in reliance upon Multiple Unit Franchisee's individual or collective character, skill, aptitude, attitude, business ability, and financial capacity (or its Principal Owners). Neither this Agreement (or any interest), nor any part or all of Multiple Unit Franchisee's ownership may be voluntarily, involuntarily, directly or indirectly, assigned, sold, subfranchised, or otherwise transferred by Multiple Unit Franchisee or its Principal Owners without the Franchisor's prior written consent. Franchisor may impose conditions to any proposed transfer or assignment, including the following:
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- Multiple Unit Franchisee is in complete compliance with the terms of this Agreement and all other agreements between the parties;
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- The proposed transferee has been approved by Franchisor as meeting Franchisor's then-current standards and policies for multiple unit franchisees;
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, a franchisee's ability to assign the Franchise Agreement is subject to specific conditions and requires the franchisor's prior written consent. Batteries Plus Bulbs emphasizes that the rights and duties within the agreement are personal to the franchisee, and the franchisor grants the agreement based on the franchisee's individual or collective character, skills, business acumen, and financial capacity.
Specifically, a franchisee cannot voluntarily or involuntarily assign, sell, subfranchise, or transfer the agreement or any ownership interest without first obtaining written consent from Batteries Plus Bulbs. The franchisor may impose several conditions before approving a transfer or assignment. These conditions include ensuring the franchisee is in full compliance with all terms of the Franchise Agreement and any other agreements with Batteries Plus Bulbs. The proposed transferee must meet the franchisor's current standards and policies for franchisees and complete the Batteries Plus Bulbs training program. Additionally, the franchisee must pay a transfer fee of $1,000, and the franchisee (and each principal owner, if applicable) must sign a general release of all claims against Batteries Plus Bulbs.
These stipulations are typical in franchising, as franchisors want to maintain control over who operates their branded locations to protect brand standards and reputation. The $1,000 transfer fee is also a common practice to cover the franchisor's administrative costs associated with reviewing and approving the transfer. The requirement for a general release protects Batteries Plus Bulbs from potential future claims by the outgoing franchisee. A prospective Batteries Plus Bulbs franchisee should carefully consider these conditions and understand that transferring the franchise is not a simple process and is subject to the franchisor's approval and specific requirements.