Until what date does the current brand licensing agreement run for Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
01(k) contributory profit-sharing plan covering all eligible employees. The Company's contribution to the Plan is a discretionary amount determined each year by Batteries Plus. Contributions for the years ended December 31, 2024 and 2023 were approximately $1,533 and $1,538, respectively.
NOTE K - BRAND LICENSING AGREEMENTS
In 2024, the Company has one licensing agreement which provided the Company with the right to market branded products across multiple product categories in the United States, its territories and Canada through its corporate stores and franchises and over a captive web domain. This agreement runs through December 31, 2027, and will renew, unless properly terminated by either party, with the same terms for one additional five-year renewal period.
Although Batteries Plus was not subject to a purchase commitment in 2024 or 2023, the Company did have a minimum annual license fee based on a percentage of purchases of brande
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the current brand licensing agreement runs through December 31, 2027. The agreement allows Batteries Plus Bulbs to market branded products across multiple product categories in the United States, its territories, and Canada through its corporate stores, franchises, and captive web domain.
Unless terminated by either party, the agreement will automatically renew with the same terms for an additional five-year period. This renewal clause provides a degree of long-term stability for Batteries Plus Bulbs and its franchisees, ensuring continued access to branded products.
Batteries Plus Bulbs had a minimum annual license fee based on a percentage of purchases of branded products. In both 2024 and 2023, the company met its minimum license fee and was not required to pay any additional amounts. Total licensing expense for the years ended December 31, 2024 and 2023 was $1,039 and $779, respectively. This expense is recorded within the cost of merchandise sold on the consolidated statements of net income.