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Description
Investment Icon

What is the Initial Investment for a Batteries Plus Bulbs Franchise?

The initial investment for a Batteries Plus Bulbs franchise ranges from $252,286 to $493,836. This includes a franchise fee of $44,500, which is a one-time payment to join the franchise network. Additionally, prospective franchisees should be prepared to have at least $100,000 in cash available to cover initial operating costs and other expenses. Understanding these financial commitments is crucial for anyone considering entering the franchise system.

Fees Icon

What are the Financial Performance Metrics for Batteries Plus Bulbs?

Batteries Plus Bulbs franchises demonstrate strong financial performance, with an average annual revenue of $887,757 per unit. The median annual revenue is $773,445, while the lowest recorded revenue is $176,032 and the highest is an impressive $7,773,199. Franchisees can expect a breakeven time of approximately 15 months, with an investment payback period of around 29 months. These figures highlight the potential profitability of operating a Batteries Plus Bulbs franchise.

Revenue Icon

What Ongoing Fees Should Franchisees Expect?

Franchisees are required to pay a royalty fee of 5% of their gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand recognition and supporting marketing efforts across the franchise network. It’s important for potential franchisees to factor these costs into their financial projections to ensure they can sustain operations and maximize profitability over time.

Breakeven Icon

How Many Units Does Batteries Plus Bulbs Operate?

As of 2023, Batteries Plus Bulbs operates a total of 722 units, comprised of 606 franchised locations and 116 corporate-owned stores. The franchise has shown steady growth, with a slight increase in total units from 721 in 2022 to 722 in 2023. This growth trajectory indicates a stable franchise system that continues to expand, presenting opportunities for new franchisees to join a well-established brand in the market.

Batteries Plus Bulbs Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - N/A
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

29 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$44,500
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

15 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$252,286 - $493,836
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$100,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$887,757
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$773,445
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$7,773,199
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$176,032
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Retail
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Scott Williams
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

1325 Walnut Ridge Drive, Hartland, Wisconsin 53029
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1996
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Batteries Plus, L.L.C.

Batteries Plus Bulbs Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

722
The number of locations owned by independent franchisees.

Franchised Units i

606
The number of locations owned and run by the franchisor.

Corporate Units i

116
Units 2021 2022 2023
Total Units 702 721 722
Net Change YoY 19 1
Franchised Units 590 609 606
Net Change YoY 19 -3
Corporate Units 112 112 116
Net Change YoY 0 4
Investment About

Investment Overview

Batteries Plus Bulbs offers a franchise opportunity with an initial investment ranging from $252,286 to $493,836, including a franchise fee of $44,500. Prospective franchisees should be prepared with a minimum cash requirement of $100,000 and a net worth of at least $100,000. This investment structure provides a clear entry point for entrepreneurs looking to join a growing retail franchise.

Potential About

Financial Performance

The average annual revenue per unit for Batteries Plus Bulbs is $887,757, with a median revenue of $773,445. The financial performance also highlights a diverse range, with the lowest annual revenue at $176,032 and the highest reaching $7,773,199. This variance indicates potential for profitability depending on location and management effectiveness.

Metrics About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand strength and marketing initiatives that help drive customer traffic to each location, ensuring franchisees benefit from a collective advertising effort.

Fees About

Operational Insights

The average operating expenses for a Batteries Plus Bulbs franchise total approximately $382,288 annually, accounting for 43% of revenue. Key expenses include general and administrative costs, occupancy, and selling and delivery, which are essential for maintaining efficient operations and customer service.

Breakeven About

Growth and Expansion

As of 2023, Batteries Plus Bulbs operates a total of 722 units, with 606 being franchised and 116 corporate-owned. The franchise has seen steady growth, with a slight decline in franchised units from 2022 to 2023, indicating a need for strategic focus on franchisee support and market positioning.

Units About

Breakeven and Payback Period

Franchisees can expect a breakeven time of approximately 15 months, with an investment payback period of around 29 months. This relatively quick return on investment is attractive for new franchisees, providing a clear pathway to profitability in a competitive retail environment.

Frequently Asked Questions

The initial investment to open a Batteries Plus Bulbs franchise ranges from $252,286 to $493,836, which includes the franchise fee and other startup costs.