Batteries Plus Franchise in 2024: Costs, Fee & FDD
Discover why Batteries Plus stands out as a top retail franchise opportunity, offering essential products, diverse revenue streams, and robust franchisee support. Explore the pros and cons to see if it’s the right investment for you!
Table of Contents:
Batteries Plus is a well-established retail franchise that has carved out a niche in the world of batteries, bulbs, and device repair. Founded in 1988 by Ron Rezetko in Green Bay, Wisconsin, the franchise quickly gained recognition as a one-stop shop for all things power-related. With over 30 years of experience, Batteries Plus has become a leader in the retail battery industry, offering a broad selection of products for consumers and businesses alike. It stands out for its innovation and adaptability in the growing technology-driven world.
The core of Batteries Plus lies in its diverse product line, which includes batteries for everything from cars and trucks to everyday household devices like remotes and toys. Additionally, the franchise has expanded to offer bulbs, phone and tablet repair services, and smart home solutions. Their key customer base includes tech-savvy individuals, businesses, and industries that need reliable power sources and lighting solutions. They also serve various markets, including auto shops, healthcare, and hospitality sectors, providing replacement parts and repairs.
Batteries Plus operates on a significant scale, with over 700 locations across the United States. Its widespread presence ensures that it caters to a vast range of customers, with a steady flow of foot traffic in its stores and online orders. The franchise serves millions of customers annually and has continued to grow, offering its services in both urban and suburban areas. While it doesn’t yet have a major international footprint, its domestic dominance makes it a well-respected brand in the U.S.
As for franchisee support, Batteries Plus offers comprehensive training programs, which include in-store training, virtual learning sessions, and ongoing operational support. Franchisees receive assistance with site selection, marketing strategies, and tech tools that streamline daily operations. The company’s strong support system ensures that franchisees have access to resources and expertise at every step of their journey, making it an attractive choice for those new to the retail world.
Battery Plus Franchise Insights
- Batteries Plus offers a 24/7 call center and ongoing marketing support, ensuring franchisees have constant assistance to drive growth and manage operations effectively.
- Batteries Plus is known for its resilience, having weathered multiple economic downturns due to the essential nature of its products like batteries and repair services.
- The franchise caters to a wide variety of customers, from everyday consumers to large businesses, which helps create a balanced and consistent revenue stream year-round.
- With the growing reliance on electronic devices, their repair services have seen increased demand, making this an attractive opportunity for franchisees looking to tap into tech-related services.
Battery Plus Franchise Key indicators
Growth YOY (%)
0%
vs industry 0%
Total U.S. Franchised Units
606
3-Year Failure Rate
12%
vs industry 13%
Sales-to-Investment ratio
2.1:1
How much does it cost to open a Battery Plus franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Battery Plus franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Battery Plus franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Battery Plus below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $15,000 | $44,500 |
| Travel and Living Expenses (Training) | $500 | $2,900 |
| New Store Commercial Support | $0 | $3,450 |
| Retail Management System | $38,986 | $38,986 |
| Omni-Channel Access Fee | $10,000 | $10,000 |
| Miscellaneous Pre-opening Expenses | $1,800 | $5,000 |
| Insurance Premiums (3 months) | $1,200 | $5,000 |
| Delivery Vehicle | $1,000 | $18,500 |
| Additional Funds (3 months) | $11,000 | $17,000 |
| New Store Opening Hardware Kit | $6,000 | $9,000 |
| New Store Marketing Campaign | $5,000 | $7,000 |
| Minimum Store Promotion Requirement | $20,000 | $20,000 |
| Rent - Security Deposit & 3 months | $5,000 | $24,000 |
| Leasehold Improvements | $0 | $109,000 |
| Equipment and Fixtures | $30,000 | $40,000 |
| Signage | $6,800 | $16,000 |
| Inventory | $57,500 | $74,000 |
| Miscellaneous Supplies | $2,500 | $4,000 |
| Additional Funds (3 months) | $40,000 | $45,000 |
| Total Investment | $252,286 | $493,836 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Batteries Plus franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchise. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a Batteries Plus franchise ranges from $252,000 to $494,000. This includes startup costs such as the franchise fee, equipment, real estate, construction, initial inventory, and funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Batteries Plus typically requires franchisees to have a minimum of $100,000 to $200,000 in non-borrowed liquid assets. This ensures the franchisee has enough resources to cover unforeseen expenses and maintain financial stability during the startup phase.
- Net Worth Requirement Batteries Plus usually assesses a franchisee’s overall net worth, which is recommended to be between $350,000 and $600,000. This includes assets like real estate, investments, and personal property, minus liabilities, ensuring that the franchisee has sufficient financial backing for long-term success.
How much does a Battery Plus franchise owner make?
Calculating the salary of a Battery Plus franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Battery Plus franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Battery Plus Revenue & Gross Sales
Based on the most recent analysis, Batteries Plus franchises have a median gross sales of $773,445, reflecting the franchise’s consistent demand for essential products and services. This financial performance highlights the brand’s stability and potential for solid revenue generation, especially in a market that relies heavily on battery and device repair needs.
Which key factors impact the average revenue performance of Battery Plus franchisees?
Several factors likely contributed to the performance of Batteries Plus U.S. franchisee median gross sales in recent years. The increasing reliance on electronic devices, coupled with the growing demand for repair services, has played a significant role. With more people working remotely and relying on technology, the need for battery replacements, repairs, and specialty products has surged. Additionally, the franchise’s expansion into new markets, such as smart home products and energy-efficient lighting, has attracted a broader customer base. Batteries Plus’ ability to serve both consumers and businesses with essential products also creates a consistent revenue stream, making it more resilient to economic fluctuations.
Battery Plus Franchise Operational Costs
Operational costs for a Batteries Plus franchise are the ongoing expenses required to maintain the day-to-day operations of the business. These costs are essential for ensuring smooth functionality and customer satisfaction. For a Batteries Plus franchise, operational costs include:
- Inventory Costs The ongoing expense of replenishing stock, including batteries, bulbs, device repair parts, and other essential products. Keeping inventory levels consistent is crucial to meet customer demand.
- Labor Costs Wages, salaries, and benefits for employees, including sales associates, repair technicians, and managers who help run the store efficiently.
- Rent or Mortgage Payments The cost of leasing or owning the property where the store is located. This includes rent or mortgage payments, property taxes, and property insurance.
- Utilities Expenses for electricity, water, gas, internet, and other utilities that are necessary to keep the store operational.
- Maintenance and Repairs Costs for maintaining the store’s equipment, such as repair tools, technology, and store fixtures. This includes both routine maintenance and unexpected repairs.
- Marketing and Local Advertising Ongoing investment in promoting the franchise locally, including social media, print ads, and community outreach to attract new customers.
- Supplies and Store Materials Includes expenses for office supplies, packaging materials, uniforms, and cleaning products that are used daily.
- Technology and Equipment Costs for maintaining and upgrading point-of-sale systems, repair equipment, and other technological infrastructure critical to the store’s operations.
- Insurance Coverage for liability, property, and worker’s compensation insurance, which is necessary to protect both the franchisee and the business.
Careful management of these operational costs is key to the long-term success of your Batteries Plus franchise.
Battery Plus Franchise Fees
When opening a Batteries Plus franchise, it’s important to account for the ongoing fees associated with operating your business. These fees are a necessary part of maintaining your franchise and ensuring continued access to the brand’s resources and support. Here are the relevant ongoing fees you should consider:
- Royalty and Service Fee You will pay 5% of total Net Revenues on all products and services. This fee is payable monthly by electronic funds transfer, due on or before the 10th of the following month in which sales were made.
- Additional Fees There may be other fees that arise depending on your store’s specific location, business model, or the services you offer.
These fees are essential to the ongoing operation of your Batteries Plus franchise and should be factored into your long-term financial planning.
Battery Plus Franchise Earnings
Batteries Plus franchises offer a strong earning potential for franchisees, especially with a median gross sales figure of $773,445. This sales performance reflects the demand for essential products like batteries, bulbs, and repair services, which provide steady revenue streams year-round. With the franchise’s diverse customer base, spanning individual consumers and businesses, this level of gross sales showcases the brand’s solid market presence and reliability in the retail sector.
For owner-operators, the financial benefits are equally promising. The estimated median owner-operator earnings come in at $93,000 based on industry operating profit margins, representing a healthy return on investment for those involved in the day-to-day operations. These earnings allow franchisees to see the direct rewards of their efforts, providing not only financial stability but also the potential for future growth as they optimize store performance and expand customer reach.
How to Open a Battery Plus Franchise
The process of becoming a Batteries Plus franchisee involves several key steps, from initial inquiry to the opening of your store. Here’s an overview of what you can expect:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Introductory Call After your inquiry, you’ll participate in an initial call with a franchise development representative. This call helps both parties understand if the franchise is a good fit and allows you to ask questions about the business model, costs, and operations.
- Franchise Application If you wish to proceed, you’ll complete a formal franchise application. This involves providing financial information and details about your background to ensure you meet the requirements for ownership.
- Discovery Day After reviewing the FDD, you’ll be invited to attend a Discovery Day at Batteries Plus’ headquarters. This is your chance to meet the corporate team, visit existing stores, and learn more about day-to-day operations.
- Sign Franchise Agreement Once you’ve decided to move forward, you’ll sign the franchise agreement and officially become a Batteries Plus franchisee.
- Site Selection and Lease Negotiation After signing the agreement, you’ll work with the franchise team to find the ideal location for your store. The team assists with site selection and negotiating the lease.
- Training and Store Buildout You will participate in a comprehensive training program that includes both classroom and on-site instruction. During this time, your store will also be built out according to Batteries Plus’ specifications.
- Grand Opening Once your training is complete and the store is ready, you’ll prepare for the grand opening. Batteries Plus provides marketing support to ensure a successful launch and ongoing operational assistance as you begin operations.
Pros & Cons
Pros
Established Brand: Batteries Plus is a well-known, respected name with over 30 years in the industry, offering strong brand recognition and trust among customers.
Diverse Revenue Streams: The franchise provides multiple services, including batteries, bulbs, and device repairs, which cater to a wide range of customers, from individual consumers to businesses.
Essential Products: The demand for batteries and repair services remains steady, even during economic downturns, making the business model resilient.
Growth Potential: With ongoing technological advancements and smart home products, there’s room to expand services and capture more market share.
Cons
Niche Market: Although essential, batteries and bulbs are niche products, which may limit the potential for rapid sales growth compared to broader retail categories.
Competition from Big Retailers: Larger retailers like Walmart or Amazon also offer batteries and similar products, potentially creating stiff competition.
Location Dependent: Success can depend heavily on your store’s location, and securing the right spot may require more time and effort.
