This post was updated on June 5, 2017 to reflect information from Batteries Plus Bulbs’ 2017 FDD (Item 7).
Detailed Estimates of Batteries Plus Bulbs Franchise Costs Based on Item 7 (Estimated Initial Investment) of Batteries Plus Bulbs’ 2017 Franchise Disclosure Document
- The typical size of a Batteries Plus Bulbs Store ranges from 1,400 to 1,800 square feet. For several items 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 Bulbs cannot estimate the cost of the building.
3. Leasehold Improvements: $0 to $66,000
- Typical locations for your Store are smaller free-standing, multiple use, and strip center locations. Leasehold improvements include lighting, flooring, and partition walls.
- Although the franchisor estimates that you will need to lease premises of approximately 1,400 to 1,800 square feet for a Store, you may need larger premises in some situations. Batteries Plus Bulbs estimates that you may pay from $13 to $36 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. Equipment, Fixtures, and Signs: $34,150 to $47,500
- This amount includes estimated expenses for interior and exterior Store signs, test equipment, fixtures, and charging equipment.
- You may purchase or lease approved brands and models of equipment from any approved supplier.
5. Inventory: $51,000 to $56,000
- You will need to purchase opening inventory that complies with the company’s specifications from approved suppliers. The company’s affiliate, Ascent, currently is an approved supplier.
- This amount does not reflect amounts needed to replenish inventory during the initial stage of operation.
6. Miscellaneous Supplies: $2,800 to $9,000
7. Prepaid Expenses and Deposits: $5,000 to $13,000
- 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.
8. Retail Management System: $27,752 to $29,259
- This amount reflects the amount you pay for the Retail Management System software and hardware that Batteries Plus Bulbs has selected for use in your Store and includes the computer access and Retail Management System development fees.
- The lower amount excludes optional System peripherals (touch screen monitors, third POS registers, etc.).
- Components of the Retail Management System (including the Proprietary Software) must be purchased from approved suppliers or licensed from the company.
9. Omni-Channel Access Fee: $10,000
- You must pay Batteries Plus Bulbs an Omni-Channel Access Fee before you open your Store for access to its Omni-Channel Program.
10. Miscellaneous Pre-opening Expenses: $3,000 to $15,000
- Miscellaneous expenses include local permit and license fees, legal and accounting fees, opening advertising, and lodging, meals, and travel expenses for one person attending the initial training program.
11. Delivery Vehicle: $1,000 to $30,000
- You must own or lease one delivery vehicle in each market area to be able 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.
12. Additional Funds – 3 Months: $27,000 to $57,000
- 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 Bulbs 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.
13. Total: $186,702 to $370,259
- This total is based on the company’s estimate of nationwide average costs and prevailing market conditions and the company’s (including its predecessor’s) over 25 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.