Updated March 2, 2021.
Detailed Estimates of Batteries Plus Franchise Costs Based on Item 7 (Estimated Initial Investment) of Batteries Plus’ 2020 Franchise Disclosure Document
- The typical size of a Batteries Plus Store ranges from 1,200 to 1,800 square feet. For several items discussed below, your cost will increase as the number of square feet increases.
- This table reflects your estimated initial investment for a single Store operated under a Franchise Agreement that offers batteries, light bulbs, and related products as well as designated services. This information assumes that you will lease the premises for your Store.
- Except where otherwise noted, all fees that you pay to Batteries Plus are non-refundable. Third party lessors, contractors, and suppliers will decide if payments to them are refundable.
1. Initial Franchise Fee: $25,000 to $37,500
- Batteries Plus offers a discounted Initial Franchise Fee for franchisees committing to open two or three Stores, to certain existing franchisees, and to qualified veterans.
2. Real Estate: Amount Not Specified
- Although most franchisees lease the premises for their Store, a small number of franchisees will purchase the land and construct the building for their Store. Due to many variable factors and a lack of historical information on which to base an estimate, Batteries Plus cannot estimate the cost of the building.
3. Leasehold Improvements: $0 to $64,000
- Typical locations for your Store are smaller free-standing, multiple use, and strip center locations. Leasehold improvements include lighting, flooring, and partition walls.
- Although Batteries Plus estimates that you will need to lease premises of approximately 1,200 to 1,800 square feet for a Store, you may need larger premises in some situations. Batteries Plus estimates that you may pay from $20 to $45 per square foot in rental expense (including common area maintenance and taxes) for you Store premises.
- You will incur greater start-up costs if you cannot negotiate the cost of leasehold improvements as part of your rental expense.
- You are responsible for any architectural plans that you may be required to submit.
4. New Store Marketing Campaign Contribution: $10,000 to $20,000
5. Equipment and Fixtures: $38,500 to $41,500
- This amount includes estimated expenses for test equipment, fixtures, and charging equipment.
- You may purchase or lease approved brands and models of equipment and fixtures from any approved supplier.
6. Signage: $7,000 to $14,500
- This amount includes estimated expenses for interior and exterior Store signs. The cost of purchasing signs may vary as a result of the characteristics of the Store site, the number and size of the signs, and the shipping distances from suppliers.
- You may purchase or lease signage from any approved supplier.
7. Inventory: $52,000 to $63,500
- You will need to purchase opening inventory that complies with Batteries Plus’ specifications and is purchased from approved suppliers. Batteries Plus’ affiliate, Ascent, currently is an approved supplier.
- This amount does not reflect amounts needed to replenish inventory during the initial stage of operation or growth in inventory as Store Net Revenues grow.
8. Miscellaneous Supplies: $4,000 to $5,550
- You will need to purchase supplies and materials that comply with Batteries Plus’ specifications and are purchased from approved suppliers.
- Batteries Plus or its affiliate may be an approved supplier.
9. Prepaid Expenses and Deposits: $1,400 to $11,050
- Prepaid insurance, the lease deposit, and utility deposits may vary considerably, depending on the size and location of your Store. Deposits are generally refundable, but prepaid insurance payments are not.
10. Retail Management System: $30,000 to $31,500
- The estimated range reflects the amount you pay for the Retail Management System software and hardware that Batteries Plus has selected for use in your Store and includes the computer access and Retail Management System development fees.
- The low end of this range excludes optional System peripherals (touch screen monitors) and incremental System peripherals that will be required as Store Net Revenues increase.
11. Omni-Channel Access Fee: $10,000
- You must pay Batteries Plus an Omni-Channel Program access fee at or around the time you open your Store for access to its Omni-Channel Program.
12. Training: $850 to $3,980
- Training expenses include the cost of lodging, meals, and travel expenses for one person attending the initial training program (including the initial start-up training program).
- If you are a new franchisee opening your first Store, 2 individuals must participate in the device repair session of the initial start-up training program. The estimated training expenses include the cost of lodging, meals, and travel expenses for a second individual to attend this component of the initial start-up training program.
13. Miscellaneous Pre-opening Expenses: $1,800 to $10,000
- Miscellaneous expenses include local permit and license fees, legal and accounting fees, and opening advertising.
14. Delivery Vehicle: $1,000 to $21,000
- You must own or lease one delivery vehicle in each market area to deliver product to customers in operating your commercial accounts business.
- The lower amount assumes that you will lease a new or used vehicle, or will use a vehicle that you already own to make deliveries, while the higher estimate assumes that you will purchase a vehicle to make these deliveries.
- Batteries Plus currently recommends a late model, used Ford Transit or similar model van as a delivery vehicle.
15. Additional Funds – 3 Months: $19,900 to $51,150
- This amount estimates the expenses you will incur during the first three months of Store operations, including initial wages and fringe benefits, lease payments, occupancy costs, and utilities.
- In providing this estimate, Batteries Plus has assumed no sales of product inventory during the first three-month period. As a result, the estimated amount does not reflect any revenue from the sale of product or corresponding (variable) costs associated with product sales (such as the cost of replenishing inventory).
- It does not include inventory costs beyond the opening inventory costs and does not include your compensation during this three-month period.
16. Total: $201,450 to $385,230
- This total is based on Batteries Plus’ estimate of nationwide average costs and prevailing market conditions and Batteries Plus’ (including its predecessor’s) over 30 years of experience in the business.
- Your initial investment must include a minimum of $100,000 of personal cash or other liquid assets in the operation of each Store.