Detailed Information on Batteries Plus’ Initial Franchise Fee, Royalty Fee + 35 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $44,500

• Batteries Plus offers an individual unit franchise and territory development rights under a multiple unit franchise. The “Initial Franchise Fee” for an individual unit franchise is $44,500 for each Store. The Initial Franchise Fee is due when you sign the Franchise Agreement and is not refundable under any circumstances.

• Batteries Plus currently offers veterans who were honorably discharged a $10,000 discount off the Initial Franchise Fee for the first Store.

2.  Multiple Unit Territory Fee:  $15,000 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 $15,000 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:  $29,832

• In addition to the Initial Franchise Fee, you will pay Batteries Plus a “Retail Management System” access and development fee that includes access to the designated software, and 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 currently must pay Batteries Plus is $29,832.

4.  Initial Inventory:  $53,200 to $64,000

• Franchisees purchase most of the initial inventory of batteries, light bulbs and related products, and device repair products from Ascent (although such products may be available from other sources). The inventory costs for items you purchase from Ascent range from $53,200 to $64,000.

5.  Store Signage, Point of Purchase Materials, Supplies, and Related Items:  $3,000 to $5,000

• Separately, you must pay Ascent approximately $3,000 to $5,000 for certain Store signage, point of purchase materials, supplies, and related items.

6.  Equipment:  $10,500 to $12,500

• You must purchase some of your equipment from Ascent. The equipment costs will range from approximately $10,500 to $12,500.

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 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 the greater of 3% of Net Revenue or the “Minimum Store Promotion Requirement”

• 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 or by local cooperative (with Batteries Plus’ approval) but cannot exceed the greater of 3% of Net Revenues or the “Minimum Store Promotion Requirement,” when combined with Digital Marketing Program contributions

• Due Date:  Established by Batteries Plus 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.  Store Relocation Marketing Campaign:  upon Store relocation, you must pay a non-refundable Store Relocation Marketing Campaign contribution ranging from $6,000 to $20,000 depending on the DMA and trade area where your Store is relocated

• Due Date:  As incurred.

14.  Store Relocation Fee:  $5,500

• Due Date:  Payable before Batteries Plus reviews the proposed new Store site.

• Payable if you desire to change the location of your Store. The fee is not refundable.

15.  Development Schedule Extension Fee:  $10,000 per Store for an extension of up to 6 months as well as any balance of the initial franchise fee owed for this location

• 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 allows extension).

16.  Franchise Agreement Extension Fee:  $10,000 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 allows extension).

17.  Transfer Fee:  20% of then-current standard Initial Franchise Fee, plus Transfer Store Marketing Campaign contribution ranging from $6,000 to $10,000

• Due Date:  Before completion of transfer.

18.  Resale Training Fee:  then-current training fee; currently, $10,000

• Due Date:  Before completion of transfer.

• Transferee must complete training upon a Store transfer.

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

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

20.  Omni-Channel Access Fee:  will vary under circumstances, currently $10,000

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

21.  Remodeling Expenses:  will vary under circumstances

• Due Date:  When incurred.

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

• Due Date:  When incurred.

• Batteries Plus may recover costs and reasonable attorneys’ fees if you lose in a dispute with it.

23.  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.

24.  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 or its affiliates.

25.  Insurance:  cost of insurance

• Due Date:  Payable before opening.

• If you fail to obtain and maintain required insurance, Batteries Plus may immediately obtain insurance and you must promptly reimburse it for insurance, including late charges.

26.  Software Support:  varies, currently $437 per month

• Due Date:  Payable monthly.

27.  Omni-Channel Maintenance Fees:  then-current fee as described in the Operations Manual, currently $200 per month

• Due Date:  Payable monthly.

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

• Due Date:  Will vary depending on fee.

29.  Avalara Avatax Service Fee, Payment Gateway Fee, Salesforce.com CRM Fee:  varies, currently $11 per month, $22 per month, and $35 per month, respectively

• Due Date:  Payable monthly.

30.  Managed Security Services (PCI Compliance) Program Fee:  currently $77 per month

• Due Date:  Payable monthly.

31.  Regional Workshops and Supplemental and Refresher Training:  varies, currently $0 to $1,500 per day

• Due Date:  When incurred.

32.  Commercial as a Service – Standard Program:  currently, $1,785 per month

• Due Date:  Payable monthly.

33.  Commercial as a Service – New Franchisee/New Store:  currently, $1,150 per month

• Due Date:  Payable monthly.

34.  Inventory Planning as a Service:  currently, $100 per month

• Due Date:  Payable monthly.

35.  National Conventions:  varies, currently $1,000 per person, plus lodging, meals, and travel expenses

• Due Date:  Convention Registration billed 6 months before convention.

36.  Payments to Ascent Relating to Products Purchased Through Supply Chain Program:  will vary

• Due Date:  When incurred.

37.  Optional Resale Marketing Assistance Fee:  currently, $1,200 for a Launch Fee or $7,500 for a Resale Marketing Fee

• Due Date:  Launch Fee is payable when you engage with the program; Resale Marketing Fee is payable when Store is sold.