Under what conditions can Batteries Plus Bulbs terminate the Franchise Agreement with cause?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement(1) | Summary(1) |
|---|---|---|
| a. Length of the franchise term | Section 3; Section 3 of Multiple Unit Franchise Agreement | Franchise Agreement: 10 years. Multiple Unit Franchise Agreement: Ends on last day of Development Schedule. |
| b. Renewal or extension | Section 3 | If you are in good standing, you can renew the Franchise |
| of the term | Agreement for one additional 10 year term. | |
| c. Requirements for you to renew or extend | Section 3 | Provide advance notice, comply with current Franchise Agreement, you and your Store Manager satisfactorily complete any new/refresher training programs, you and your Principal Owners must meet current managerial, financial and business standards, sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, pay renewal fee and Omni-Channel access renewal fee, and sign a general release of claims. |
| d. Termination by you | Section 17 | If you comply with the Franchise Agreement, and we fail to cure a material provision within 60 days after written notice. |
| e. Termination by us | Not Applicable | |
| without cause | ||
| f. Termination by us with cause | Section 16; Section 13 of Multiple Unit Franchise Agreement | We may terminate the Franchise Agreement and Multiple Unit Franchise Agreement only if you default. |
| Provision | Section in Agreement(1) Summary(1) | |
| g. “Cause” defined – curable defaults | Sections 16(B) and (C); Section 13(A) of Multiple Unit Franchise Agreement Franchise Agreement: You have 30 days to cure failure to open Store when required, failure to complete training, failure to comply with System standards, fail to renew or maintain Store lease, breach under another Batteries Plus franchise agreement, and a violation of any material provision of the Agreement. You have 10 days to cure a failure to pay amounts due us or any creditors. Multiple Unit Franchise Agreement: You have 30 days to cure failure to meet development requirements, failure to comply with this Agreement or the Franchise Agreement or you terminate a franchise Agreement without cause, and failure to comply with any requirements in the Operations Manual. You have 10 days to cure a failure to pay amounts due us or any creditors. | |
| h. “Cause” defined – non- curable defaults | Sections 16(B) and (C); Section 13(B) of Multiple Unit Franchise Agreement Franchise Agreement: Failure on 3 or more occasions in any 12 months to comply with any provision, default which is not curable, repeatedly deceive Store customers, conviction of or proof that you have committed a felony or other crime which harms the Store’s reputation, insolvency, an assignment of assets to creditors, Store abandonment, defaults which injures the goodwill associated with the Licensed Marks, use of unapproved website or other unauthorized conduct on the internet, unauthorized assignment of agreement or interest, and intentionally falsify any information provided to us. Multiple Unit Franchise Agreement: Failure on 3 or more occasions in any 12 months to comply with any provision, unauthorized assignment, material misrepresentation or omission in franchise application, conviction of or proof that you have committed a felony or other crime that harms Store’s reputation, improper disclosure of Confidential Information, insolvency, unauthorized use of Licensed Marks that injures goodwill, use of unapproved website or other unauthorized conduct on the internet, default which is not curable or an immediate threat or danger to public health or safety resulting from construction, maintenance or operation of the Store. | |
| Provision | Section in Agreement(1) | Summary(1) |
| i. Your obligations on termination/nonrenewal | Section 18; |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, Batteries Plus Bulbs can terminate the Franchise Agreement with cause if the franchisee defaults. The defaults are divided into curable and non-curable defaults.
Curable defaults for the standard Franchise Agreement include failure to open the store when required, failure to complete training, failure to comply with system standards, failure to renew or maintain the store lease, breach under another Batteries Plus franchise agreement, and a violation of any material provision of the agreement. For these curable defaults, a franchisee typically has 30 days to resolve the issue. A shorter cure period of 10 days applies to failure to pay amounts due to Batteries Plus Bulbs or any creditors. The Multiple Unit Franchise Agreement includes similar curable defaults, such as failure to meet development requirements, failure to comply with the agreement, or terminating a franchise agreement without cause, with the same cure periods.
Non-curable defaults, which allow Batteries Plus Bulbs to terminate the agreement immediately, include repeated failures to comply with any provision, defaults that cannot be cured, deceiving customers, conviction of a felony, insolvency, assignment of assets to creditors, store abandonment, defaults that injure the goodwill associated with the Licensed Marks, use of unapproved websites, unauthorized assignment of the agreement, and intentionally falsifying information provided to Batteries Plus Bulbs. The Multiple Unit Franchise Agreement lists similar non-curable defaults, such as material misrepresentations in the franchise application, improper disclosure of confidential information, and defaults that pose an immediate threat to public health or safety.
It is important for prospective franchisees to understand these termination conditions, as they outline the circumstances under which their franchise agreement could be terminated. Franchisees should pay close attention to both the curable and non-curable defaults to ensure they are in compliance with the agreement and to avoid potential termination.