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Batteries Plus Bulbs Franchise Costs & Fees

Date of Incorporation: 1988
Franchising Since: 1992
Headquarters: Hartland, Wisconsin

Business Description: Batteries Plus, L.L.C., the franchisor, operates retail stores selling batteries, light bulbs and related items, and offering device repair and related services under the name “Batteries Plus Bulbs” and sell franchises for the operation of Batteries Plus Bulbs Stores.

Franchise Offer: The franchisor offers individual and multiple unit franchises for the operation of Batteries Plus Bulbs stores, selling batteries, light bulbs and related items, and offering device repair and related services, to the retail consumer and commercial accounts.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. Batteries Plus Bulbs franchisees may be eligible for expedited Small Business Administration (the SBA) loan processing through the SBA’s Franchise Registry Program.

Training and Assistance: The initial, commercial sales, store manager and investor training programs are conducted at the franchisor’s corporate training center in Pewaukee, Wisconsin and online. Before attending the portion of the initial training program offered in Pewaukee, Wisconsin, franchisees first must secure their site, as well as complete the required online training, which covers battery product, bulb product, device repair information and systems training. The initial training program offered in Pewaukee, Wisconsin will last 3 weeks and includes classes conducted at other designated locations and on-the-job training provided at the franchisor’s local Stores. The franchisor may, at its discretion, require franchisees or the proposed manager to continue training for up to 10 additional days. After completing the initial training program in Pewaukee, Wisconsin and before opening the Store, franchisees must complete additional online training covering back office accounting practices and processes. The franchisor may require that franchisees (or the Principal Owner of a franchisee that is an entity) and any Store Manager or any assistant Store Manager attend supplemental and refresher training programs during the term of the Franchise Agreement. The franchisor may determine the time and place of this additional training and may charge a reasonable fee for the training.

Territory: Franchisees will receive a “Protected Area” representing an area equal to the lesser of a 3 mile radius or 200,000 people surrounding the location of the Store when the franchisor and franchisee sign the Franchise Agreement.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew the Franchise Agreement for one additional 10 year term.

Obligations and Restrictions: The Store must at all times be under the franchisee’s direct supervision (or, if a partnership, corporation or limited liability company, a Principal Owner or an operating manager who the franchisor approved and who has satisfactorily completed the training program(s) that it designates). If an operating manager supervises the Store, franchisees (or the Principal Owner) must remain active in overseeing Store operations, or they must complete our investor training program and franchisees must have at least 2 Store Managers on-staff at all times who have completed the training program(s) the franchisor designates. Franchisees must offer and sell in their Store all, and only, those batteries, light bulbs and related products, equipment and services that the franchisor has approved. Franchisees must participate in the franchisor’s market research programs, test market new products and services in the Store and provide the franchisor with timely reports and other relevant information regarding market research.

Estimated Number of Units: 685

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $37,500
Real Estate Varies
Leasehold Improvements $0 $85,000
Equipment, Fixtures and Signs $41,000 $51,000
Inventory $54,000 $60,000
Miscellaneous Supplies $2,800 $9,000
Prepaid Expenses and Deposits $5,000 $13,000
Retail Store System $27,752 $29,259
Omni-Channel Access Fee $10,000 $10,000
Miscellaneous Pre-Opening Expenses $3,000 $10,000
Opening Advertising and Promotion $15,000 $15,000
Delivery Vehicle $1,000 $30,000
Additional Funds (3 months) $12,000 $20,000
ESTIMATED TOTAL $211,552 $406,759
Other Fees
Type of Fee Amount
Royalty and Service Fee 5% of total Net Revenues on all products and services.
Income and Sales Taxes The franchisor may collect from franchisees the cost of all taxes arising from the franchisor’s licensing of intellectual property to franchisor in the state where the Store is located, as well as any assessment on fees and any other income the franchisor receives from franchisees.
National Marketing and Promotional Fee 1% of total Net Revenues.
Digital Marketing Program Contribution Up to 3% of Net Revenue; January-June 2016 - 1.5% of Net Revenues with a monthly minimum of $700/month and a maximum of $1,375 July-December 2016 – 2% of Net Revenues with a monthly minimum of $700/month and maximum of $1,825
Advertising/Marketing Cooperative(s) Amount determined by Batteries or by local cooperative (with the franchisor’s approval) but cannot exceed 3% of Net Revenues, and when combined with Digital Marketing Program contributions, cannot exceed the “Minimum Store Promotion Requirements”.
Minimum Store Marketing Obligation Franchisees must spend a minimum of $15,000 on an approved Store opening campaign. In addition, franchisees must spend additional amounts each calendar year on “approved” Store advertising and promotional activities in the franchisee’s market to the extent their combined contributions respecting the Digital Marketing Program and advertising cooperative are less than the “Minimum Store Promotion Requirement.”.
Development Schedule Extension Fee $2,500 per Store for an extension of up to 6 months.
Franchise Agreement Extension Fee $2,500 for an extension of up to 6 months.
Store Relocation Fee $4,500
Transfer Fee 20% of then-current standard Initial Franchise Fee.
Renewal Fee 20% of then-current standard Initial Franchise Fee.
Omni-Channel Access Fee Will vary under circumstances, currently $10,000 (prorated upon a transfer of a Franchise Agreement).
Remodeling Expenses Will vary under circumstances.
Costs and Attorneys’ Fees Will vary under circumstances.
Audit Cost of audit plus 1½% interest per month from due date.
Interest Expenses Lesser of 18% per year or the maximum rate permitted by law.
Insurance Cost of insurance.
Software Support Varies, currently $280 per month.
Omni-Channel Maintenance Fees Then-current fee as described in the Operations Manual, currently $100 per month.
Omni-Channel Program Fees Varies, includes administrative fee on certain product and reimbursement of national account, ecommerce and other program expenses and services provided to franchisees.
IT Infrastructure Maintenance Fee Varies, currently $300 per year.
Managed Security Services (PCI Compliance) Program Fee Currently $66.37 per month.
Regional Workshops and Supplemental and Refresher Training Varies, currently $0 - $150 per day.
National Conventions Varies, currently $500 per person plus lodging, meals and travel expenses.
Payments to Ascent Relating to Products Purchased Through Supply Chain Program Will vary.

The above information has been taken from the FDD of Batteries Plus Bulbs. Year of FDD: 2016

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