Batteries Plus

The franchise fee is $44,500 for a single store, with step-downs for multi-unit commitments: $39,500 for the second store, $34,500 for the third, $29,500 for the fourth and beyond. Heroes, first responders, veterans, nurses, and teachers get $10,000 off their first store. Existing franchisees in good standing with 36+ months get a loyalty rate of $15,000 for an additional location — a meaningful incentive for multi-unit growth.

But the franchise fee is only part of your upfront cash commitment. Batteries Plus charges a $38,968 Retail Management System (RMS) access and development fee — a one-time technology and software package due at opening — plus a $10,000 Omni-Channel Program Access Fee. Opening inventory from the affiliated supplier Ascent runs $57,500–$74,000. Add equipment and fixtures ($33,000–$39,000), signage ($7,500–$16,000), leasehold improvements ($0–$116,000 depending on the space), and a mandatory $20,000 Minimum Store Promotion Requirement, and the full range lands at $263K to $497K.

Ongoing: 5% royalty on net revenues, plus up to 4–5% in combined national and local marketing obligations (1% national, up to 3% local/digital combined with co-op maximum). At a moderate revenue store, you're looking at 6–8% total ongoing fee burden, which is below the specialty retail average.

The Item 19 discloses merchandise margin data rather than full P&L revenue figures, which limits direct revenue benchmarking but provides useful profitability context:

For 494 same-store franchise locations in fiscal year ending August 2025: - Average merchandise margin: 51.6% (blended retail and commercial) - Retail customer margin alone: 60% - Commercial customer margin: 39%

The 60% retail margin is strong for specialty retail — typical electronics or hardware retail operates at 35–45%. The commercial channel (B2B battery sales to businesses, fleets, and industrial customers) runs at a lower 39% but provides volume. Revenue is split approximately 59% retail / 41% commercial across the system.

The FDD references net revenue by performance quartile for franchised and company-owned stores, and EBITDA data for company-owned locations — but those specific figures weren't fully available in extraction. The margin profile suggests a financially healthy unit model for operators running efficient stores. Batteries Plus is not a high-margin boutique; it's a volume-plus-service business where device repair services are an increasingly important revenue line.

Batteries Plus has been stable at the ~720–737 unit range for three years: 721 total in 2022, 722 in 2023, 737 in 2024. The franchised unit count is slightly declining (609 → 606 → 604) while company-owned has grown meaningfully (112 → 116 → 133). The 19-unit increase in company stores in 2024 suggests the franchisor is selectively acquiring or converting locations — a signal that the brand itself is healthy but the economics favor direct operation in certain markets. For a franchisee, the flat system size means available territories are limited; strong markets may already be taken or company-operated.

The near-zero closure rate for a system this size (737 units) is a genuine strength indicator. Specialty retail at this scale doesn't sustain that profile unless unit economics are working.

The affiliated supplier relationship with Ascent deserves scrutiny. Opening inventory of $57,500–$74,000 must come from Ascent, along with signage, equipment, and supplies — you have no competitive alternatives for these required purchases. The $38,968 RMS fee and $10,000 Omni-Channel fee are also non-negotiable upfront costs that exist above and beyond the franchise fee.

The renewal terms add costs beyond the standard renewal fee: at renewal you pay $8,900 (20% of the $44,500 standard IFF) plus another $10,000 Omni-Channel Access Fee — so renewal costs $18,900 total, which is high relative to the typical 10–15% renewal fee structure. The transfer fee is $22,250 (50% of standard IFF) plus a $10,000 Resale Training Fee, totaling $32,250 to sell your business — a material exit cost. The development schedule extension fee of $2,500/month is a penalty for slow execution that can add meaningful cost if your buildout timeline slips.