Under what conditions can Batteries Plus Bulbs' right to change the system be limited?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Term of Agreement/Reservation of Rights. Subject to earlier termination as provided herein, this Agreement is for a term commencing on the date executed and expiring on the last day of the last Development Period as stated in the Development Schedule. Franchisor (for itself and its affiliates) retains the right: (1) to itself own and operate, and to grant other persons the right to own and operate, Batteries Plus® stores at locations outside the Designated Area, who may offer products and services within the Designated Area, and on conditions as Franchisor deems appropriate; (2) to sell within and outside the Designated Area the products and services authorized for sale at Batteries Plus® stores under trademarks and service marks other than the Licensed Marks through similar or dissimilar channels of distribution and pursuant to conditions Franchisor deems appropriate; (3) to sell the products and services authorized for sale at Batteries Plus® stores under the Licensed Marks through dissimilar channels of distribution (i.e., other than the operation of full-service retail Batteries Plus® stores), including by electronic means such as the Internet and by websites established by Franchisor, and pursuant to conditions Franchisor deems appropriate within and outside the Designated Area; and (4) to advertise the System on the Internet (or any other existing or future form of electronic or digital commerce) and to create, operate, maintain and modify, or discontinue the use of a website using the Licensed Marks.
- B. Rights During Development Periods. If Multiple Unit Franchisee: (1) is in full compliance with the conditions contained in this Agreement, including the satisfaction of all development obligations
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, the franchisor retains significant rights to modify the Batteries Plus Bulbs system. Batteries Plus Bulbs retains the right to sell products and services authorized for sale at Batteries Plus Bulbs stores under the Licensed Marks through dissimilar channels of distribution (i.e., other than the operation of full-service retail Batteries Plus Bulbs stores), including by electronic means such as the Internet and by websites established by Franchisor, and pursuant to conditions Batteries Plus Bulbs deems appropriate within and outside the Designated Area. Also, Batteries Plus Bulbs retains the right to advertise the System on the Internet (or any other existing or future form of electronic or digital commerce) and to create, operate, maintain and modify, or discontinue the use of a website using the Licensed Marks.
For a multiple-unit franchisee, Batteries Plus Bulbs' rights are subject to the franchisee being in full compliance with the conditions contained in the agreement, including the satisfaction of all development obligations. This means that if a franchisee is meeting all requirements and obligations outlined in their agreement, Batteries Plus Bulbs' ability to exercise its rights, such as modifying the system, may be limited or subject to certain considerations related to the franchisee's compliance.
This conditionality is important for prospective franchisees to understand. While Batteries Plus Bulbs maintains broad rights to evolve and adapt its system, a franchisee's adherence to the agreement provides a degree of protection or leverage. Franchisees should carefully review the conditions and development obligations within the franchise agreement to fully understand their rights and responsibilities, and how their compliance can impact the franchisor's ability to make changes to the system.