Under what conditions will Batteries Plus Bulbs refrain from establishing another franchised or company-owned full-service Batteries Plus Bulbs store in the Designated Area?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into a Multiple Unit Franchise Agreement, you will receive certain protected rights to develop more than one Store within a designated geographic area (the "Designated Area") to be described in Exhibit A attached to the Multiple Unit Franchise Agreement. The size of the Designated Area will vary, depending on the number Stores you intend to open, the population density, and the demographics in the area in which you desire to operate. The Designated Area may be one or more counties or cities in rural areas, and may be a portion of a metropolitan statistical area in heavily-populated major cities. We will not establish another franchised or company-owned full-service Batteries Plus® store in the Designated Area so long as you meet the Development Schedule, satisfy our minimum capital requirements to develop the Store, comply with all other provisions described in the Multiple Unit Franchise Agreement and you otherwise comply with the provisions of each related Franchise Agreement. As described above, however, we have certain rights under Multiple Unit Franchise Agreement and each Franchise Agreement to sell products and services using the Licensed Marks or other marks using similar or dissimilar channels of distribution in the Designated Area. If you do not comply with the Development Schedule and the Multiple Unit Franchise Agreement, we may terminate the Multiple Unit Franchise Agreement or terminate your protected rights to develop Stores in the Designated Area and grant individual or multiple unit franchises within the Designated Area to third parties. As described in Item 6 above, you may request an extension to the date by which you must open a Store under the Development Schedule (limited to the period of time we allow, not to exceed 6 months).
Source: Item 12 — Territory (FDD pages 43–46)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the franchisor provides certain protections to franchisees operating under a Multiple Unit Franchise Agreement. Batteries Plus Bulbs will not establish another franchised or company-owned full-service store within the Designated Area as long as the franchisee adheres to specific requirements. The Designated Area is a geographic region outlined in Exhibit A of the Multiple Unit Franchise Agreement, its size varying based on the number of stores the franchisee plans to open, population density, and demographics of the desired operating area. This area can range from multiple counties or cities in rural settings to portions of metropolitan areas in more densely populated cities.
To maintain this protected territory, the franchisee must meet the Development Schedule, which likely outlines the timeline for opening multiple stores. They must also satisfy Batteries Plus Bulbs's minimum capital requirements for store development, ensuring they have sufficient financial resources to establish and operate the stores. Furthermore, the franchisee must comply with all other provisions detailed in the Multiple Unit Franchise Agreement and each related individual Franchise Agreement.
Failure to meet these conditions can result in consequences. If the franchisee does not comply with the Development Schedule or the Multiple Unit Franchise Agreement, Batteries Plus Bulbs reserves the right to terminate the Multiple Unit Franchise Agreement. Alternatively, Batteries Plus Bulbs may terminate the franchisee's protected rights to develop stores within the Designated Area, allowing the franchisor to grant individual or multiple unit franchises to third parties within that same area. However, the franchisee can request an extension to the date by which they must open a store under the Development Schedule, although this extension is limited to a period of time allowed by Batteries Plus Bulbs, not exceeding 6 months.