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Considering a Batteries Plus Bulbs Franchise? Don’t Overlook These 31 Important Franchise Fees

by Franchise Chatter on June 5, 2017

in Battery Franchise, Franchise Fees, Retail Franchise



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Batteries Plus Bulbs franchise, don’t get blindsided by these 31 important franchise fees (from the initial franchise fee, to the royalty fee, to 29 other fees found in Items 5 and 6 of Batteries Plus Bulbs’ 2017 FDD).

1.  Initial Franchise Fee:  $27,500 to $37,500

  • Batteries Plus Bulbs offers an individual unit franchise and territory development rights under a multiple unit franchise. The “Initial Franchise Fee” for an individual unit franchise is $37,500 for each Store. The Initial Franchise Fee is due when you sign the Franchise Agreement and is not refundable under any circumstances.
  • Batteries Plus Bulbs is currently offering veterans who were honorably discharged a $10,000 discount off the Initial Franchise Fee.

2.  Multiple Unit Territory Fee:  $10,000 for each Store you agree to establish under the “Development Schedule”

  • If you sign a Multiple Unit Franchise Agreement, the “Multiple Unit Territory Fee” is $10,000 for each Store you agree to establish under the “Development Schedule” described in the Multiple Unit Franchise Agreement.
  • The Multiple Unit Territory Fee that you pay for each Store will be credited against the applicable Initial Franchise Fee for that Store.

3.  Retail Management System:  $17,340



  • In addition to the Initial Franchise Fee, you will pay Batteries Plus Bulbs a “Retail Management System” access and development fee that includes access to the designated software, licenses for the store web security software, network Retail Management System connectivity fee, and anti-virus software protection.
  • The Retail Management System access and development fee and related expenses that you must pay Batteries Plus Bulbs is $17,340.

4.  Initial Inventory:  $47,000 to $52,000

  • Franchisees purchase most of the initial inventory of batteries, light bulbs, and related products from Ascent (although the batteries, bulbs, and related products are available from other sources). The inventory costs for items you purchase from Ascent range from $47,000 to $52,000.

5.  Store Signage, Point of Purchase Materials, Supplies, and Related Items:  $5,000

  • Separately, you must pay Ascent approximately $5,000 for certain Store signage, point of purchase materials, supplies, and related items.

6.  Equipment:  $14,100

  • You must purchase some of your equipment from Ascent. The equipment costs approximately $14,100.

7.  Royalty and Service Fee:  5% of total Net Revenues on all products and services

  • Due Date:  Payable monthly by electronic funds transfer on or before the 10th day of the month following month in which sales were made.

8.  Income and Sales Taxes:  Batteries Plus Bulbs may collect from you the cost of all taxes arising from its licensing of intellectual property to you in the state where your Store is located, as well as any assessment on fees and any other income it receives from you

  • Due Date:  Payable monthly by electronic funds transfer at same time as royalty and service fee.
  • Only imposed if state collects these taxes or assessments.

9.  National Marketing and Promotional Fee:  1% of total Net Revenues

  • Due Date:  Payable by electronic funds transfer at same time as royalty and service fee.
  • Used for national marketing and promotional activities.

10.  Digital Marketing Program Contribution:  up to 3% of Net Revenue; for the period January 1, 2017 to December 31, 2017, 3% of Net Revenues with a monthly maximum of $2,750

  • Due Date:  Payable by electronic funds transfer at the same time as royalty and service fee.

11.  Advertising/Marketing Cooperative(s):  amount determined by Batteries Plus Bulbs or by local cooperative (with Batteries Plus Bulbs’ approval) but cannot exceed 3% of Net Revenues, and when combined with Digital Marketing Program contributions, cannot exceed the “Minimum Store Promotion Requirements”

  • Due Date:  Established by Batteries Plus Bulbs or franchisees.
  • Contributions to Advertising/Marketing Cooperatives are used for regional and local advertising or marketing activities.

12.  Minimum Store Marketing Obligation:  you must spend amounts each calendar year on “approved” Store advertising and promotional activities in your market to the extent your combined contributions respecting the Digital Marketing Program and advertising cooperative are less than the “Minimum Store Promotion Requirement”

  • Due Date:  Minimum amount must be spent during each calendar year.
  • The term “Minimum Store Promotion Requirement” means:  (i) during the first calendar year (or portion thereof) following the Store opening date, a pro rata amount of $20,000 based upon the number of weeks during the calendar year in which the Store was in operation; and (ii) during the first full and each subsequent calendar year during the term of the Franchise Agreement, the greater of 4% of your Store’s Net Revenues (based on Store Net Revenues for the previous calendar year) or $20,000.
  • If you do not satisfy the Minimum Store Promotion Requirement for a calendar year, you must deposit with Batteries Plus Bulbs the difference between the amount of the Minimum Store Promotion Requirement and the amount you actually spent during the calendar year on qualifying advertising or promotional activities. Batteries Plus Bulbs will deposit that amount in the NMF Fund.

13.  Development Schedule Extension Fee:  $2,500 per Store for an extension of up to 6 months



  • Due Date:  Payable when you request an extension to the Development Schedule under the Multiple Unit Franchise Agreement.
  • Limited to a single extension per Store (if Batteries Plus Bulbs allows extension).

14.  Franchise Agreement Extension Fee:  $2,500 for an extension of up to 6 months

  • Due Date:  Payable when you request an extension of time in which to open the Store.
  • Limited to a single extension to the time period in which to open the Store (if Batteries Plus Bulbs allows extension).

15.  Store Relocation Fee:  $4,500

  • Due Date:  Payable before Batteries Plus Bulbs reviews the proposed new Store site.
  • Payable if you desire to change the location of your Store.

16.  Transfer Fee:  20% of then-current standard Initial Franchise Fee

  • Due Date:  Before completion of transfer.

17.  Renewal Fee:  20% of then-current standard Initial Franchise Fee

  • Due Date:  At least 30 days before renewal of Franchise Agreement.

18.  Omni-Channel Access Fee:  will vary under circumstances, currently $10,000 (prorated upon a transfer of a Franchise Agreement)

  • Due Date:  Before completion of transfer or at least 30 days before renewal of the Franchise Agreement.

19.  Remodeling Expenses:  will vary under circumstances

  • Due Date:  When incurred.

20.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  When incurred.
  • Batteries Plus Bulbs may recover costs and reasonable attorneys’ fees if you lose in a dispute with it.

21.  Audit:  cost of audit, plus 1½% interest per month from due date

  • Due Date:  30 days after billing.
  • Payable only if audit shows an understatement of at least 2% of Net Revenues for any month.

22.  Interest Expenses:  lesser of 18% per year or the maximum rate permitted by law

  • Due Date:  When due.
  • Payable if you do not timely pay Royalty and Service Fee, NMF Fee, Digital Marketing Fee, or other amounts owed to Batteries Plus Bulbs or its affiliates.

23.  Insurance:  cost of insurance

  • Due Date:  Payable before opening.
  • If you fail to obtain and maintain required insurance, Batteries Plus Bulbs may immediately obtain insurance and you must promptly reimburse it for insurance, including late charges.

24.  Software Support:  varies, currently $280 per month

  • Due Date:  Payable monthly.

25.  Omni-Channel Maintenance Fees:  then-current fee as described in the Operations Manual, currently $100 per month

  • Due Date:  Payable monthly.

26.  Omni-Channel Program Fees:  varies, includes administrative fee on certain product and reimbursement of national account, e-commerce, and other program expenses and services provided to you

  • Due Date:  Will vary depending on fee.

27.  IT Infrastructure Maintenance Fee:  varies, currently $300 per year

  • Due Date:  Payable annually for stores open greater than 1 year.

28.  Managed Security Services (PCI Compliance) Program Fee:  currently $66.37 per month

  • Due Date:  Payable monthly.

29.  Regional Workshops and Supplemental and Refresher Training:  varies, currently $0 to $150 per day

  • Due Date:  When incurred.

30.  Commercial Sales Effectiveness Program Fee (if you fail to participate or successfully complete):  currently, $2,000

  • Due Date:  When incurred.

31.  National Conventions:  varies, currently $500 per person, plus lodging, meals, and travel expenses

  • Due Date:  When incurred.


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