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Under what conditions might Batteries Plus Bulbs modify or eliminate a franchisee's Protected Area?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

You must meet a minimum annual Net Revenues quota during each full calendar year following the date the Store opens. If you do not do so, we may modify or eliminate your Protected Area. The minimum annual Net Revenues quotas are as follows:

Source: Item 12 — Territory (FDD pages 43–46)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, a franchisee's protected area may be modified or eliminated if they fail to meet minimum annual net revenue quotas. The specific revenue quotas are not detailed in this excerpt, but the document states that these quotas must be met each full calendar year after the store opens.

This condition is significant for prospective franchisees as it directly ties their territorial protection to financial performance. If a Batteries Plus Bulbs store underperforms, the franchisor reserves the right to reduce or remove the protected area, potentially allowing other franchisees or company-owned stores to operate in the same vicinity. This could intensify competition and further impact the underperforming store's revenue.

Franchisees should carefully consider the factors that could affect their ability to meet the minimum revenue quotas, such as local market conditions, competition, and their own operational capabilities. It is crucial to fully understand the specific revenue targets and the potential consequences of failing to achieve them before entering into a franchise agreement with Batteries Plus Bulbs. Prospective franchisees should inquire about the specific minimum annual net revenue quotas for their location and the historical performance of similar stores.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.