Batteries Plus Franchise Due Diligence

About Batteries Plus Franchise

Specialty retail franchise selling batteries, light bulbs, and offering device repair services.

The total initial investment for a Batteries Plus franchise ranges from $356,640 to $631,105, which includes the initial franchise fee of $39,500. These figures come from the most recently available Franchise Disclosure Document (FDD) filed with state regulators.

Beyond the initial investment, franchisees pay ongoing royalties of 5% of gross sales and marketing/advertising contributions of 2% of gross sales. These ongoing fees significantly impact your real profit margin, and they are often underestimated by prospective franchisees.

What the Batteries Plus FDD reveals

Based on the Batteries Plus, L.L.C. 2025 Franchise Disclosure Document (fiscal year ending August 31, 2025 data in Item 19), Franchise Chatter February 2026 FDD Talk, February 2025 FDD Talk, SharpSheets 2025 FDD summary, Franchise Times 2025 Top 400 listing (Batteries Plus ranked #124), Franchise Direct 2025 FDD summary, Peersense 2026 analysis, FranChimp 2021 and 2024 FDD extracts, and the official Batteries Plus franchising portal at batteriesplusfranchise.com. Batteries Plus was founded in 1988 in Green Bay, Wisconsin to address the specialty replacement battery market. The company began franchising in August 1996. The franchisor entity is Batteries Plus, L.L.C., owned through Square Brands International, LLC (Wisconsin) and Batteries Plus Holding Corporation (Georgia). Principal business address is in Hartland, Wisconsin. Since July 6, 2016, Batteries Plus has been controlled through affiliates by Freeman Spogli & Co., a Los Angeles private equity firm with principal offices at 11100 Santa Monica Boulevard, Suite 1900, Los Angeles, California 90025. Prior to Freeman Spogli, the brand was owned by Roark Capital Group from November 2007 to July 2016. Current CEO is Scott K. Williams. The brand held 737 units as of the 2025 FDD filing (per Franchise Times 2025 Top 400 ranking), and by October 2025 reported over 800 stores open or in active development pipeline. The company operates 116 company-owned stores alongside franchised locations.

Item 5 and 6: Fee Structure

Initial franchise fee is $44,500 per Franchise Times 2025 Top 400 ranking, with multi-unit development discounts available through a Multiple Unit Territory program (second unit $34,500, third unit $29,500, subsequent units $25,000 each, per Batteries Plus franchising portal blog entries). A separate Retail Management System access and development fee of $19,625 covers proprietary software, network connectivity, store web security, and anti-virus licensing. Per the 2025 FDD Item 7, total initial investment ranges from $262,646 to $496,996, making Batteries Plus a mid-tier retail investment. Minimum liquid capital requirement is approximately $100,000, with minimum net worth of $350,000. Ongoing royalty is 5% of Net Revenue, in the industry-standard range for specialty retail. Marketing fees are structured through a Digital Marketing and Local Media Program Contribution of up to the greater of 3% of Net Revenues or the Minimum Store Promotion Requirement, plus Advertising/Marketing Cooperative contributions also up to 3% of Net Revenues, with the combined cap at 4% of Net Revenues. A Minimum Store Marketing Obligation applies if combined contributions fall short of the Minimum Store Promotion Requirement. Combined recurring fee burden reaches 9% of Net Revenues (5% royalty plus 4% combined marketing), before Retail Management System fees and any Ace Insurance Agency purchases. Franchise agreement term and renewal conditions are specified in the FDD and should be reviewed with franchise counsel.

Item 19: Earnings Disclosure

The 2025 FDD Item 19 reports on 494 franchised Batteries Plus Stores that were in operation for the entire 12-month period ending August 31, 2025, plus 508 franchised stores open as of August 31, 2025. Per the official Batteries Plus franchising portal disclosure updated January 2026, the top quartile (123 of 494 franchised stores, 25%) averaged $1,608,969 in annual net revenue, with 39 of those 123 stores (32% of the top quartile) meeting or exceeding the average. The average across all 494 franchised stores reporting was $935,755 in net revenue, and the lowest quartile averaged $491,356 in net revenue. This produces a 3.3x spread between the bottom and top quartile averages, signaling high variance in location-level and operator-level outcomes. Item 19 also includes data from 116 company-owned stores; importantly, these company-owned stores do not actually pay the 5% royalty or the 5% of Net Revenue marketing combined requirement, but the franchisor imputes these expenses in the Item 19 tables to make company-owned store P&Ls appear comparable to franchised store P&Ls. Buyers evaluating company-owned store EBITDA figures should recognize that these are adjusted hypothetical P&Ls, not actual franchised operator results. The 494-store franchised sample is legitimate Item 19 data; the 116-store company-owned sample is reconstructed to simulate franchise economics.

Item 20: Unit Count and Growth Trajectory

Batteries Plus reported 737 total units per the 2025 FDD filing, with 508 franchised stores open and 116 company-owned stores actively operating as of August 31, 2025. The brand demonstrated strong 2024 growth momentum: 57 new franchise agreements signed across 11 states, 30 new stores opened across 15 states, plus an additional 17 franchise agreements signed in Q1 2025 (including 7 new franchisees) and 8 new stores opened in 7 states. By October 2025, the brand reported over 800 stores open or in active development. Franchise agreement term is 10 years with renewal conditions per the FDD. Territory rights and Protected Territory definitions are specified in the Franchise Agreement. Multi-unit development is actively encouraged through the Multiple Unit Territory fee discount structure, and approximately 40% of franchisees operate multiple units.

Top 3 Red Flags

1. Freeman Spogli & Co. private equity ownership since July 2016 is now in its 10th year, materially exceeding the typical 5 to 7 year PE hold window, which signals either an imminent exit with all the franchise fee and structure changes that implies, or an inability to exit on acceptable terms. Freeman Spogli acquired Batteries Plus from Roark Capital in July 2016 at the end of Roark's 9-year hold (November 2007 through July 2016). The prior Roark-to-Freeman Spogli transition was itself a disruption for franchisees signing during that window. Freeman Spogli's hold is now approaching 10 years, which is well beyond the 5-to-7 year industry norm for private equity hardware, home services, and specialty retail investments. Two scenarios apply and both carry risk: first, Freeman Spogli may be preparing an exit (sale to strategic, secondary PE sale, or IPO) with typical PE-exit-era changes including royalty structure optimization, technology fee additions, or Minimum Store Marketing Obligation tightening to maximize exit valuation; second, Freeman Spogli may have attempted exit and not found acceptable terms, which would suggest broader market or category concerns about valuation. Neither scenario favors a buyer signing a 10-year franchise agreement in 2026. Compound this with the 2016 Roark-to-Freeman Spogli transition already on the books and franchisees face an ownership timeline where the original brand-building PE (Roark) exited 10 years ago and the current PE (Freeman Spogli) is now overdue for exit. Demand written clarification of Freeman Spogli's publicly communicated exit timeline, if any, and review the change-of-control provisions in the Franchise Agreement carefully.
2. The 3.3x spread between bottom-quartile ($491,356) and top-quartile ($1,608,969) franchised store net revenue signals extraordinarily high variance in location and operator outcomes, and bottom-quartile stores operate with tight or negative margins after the 9% combined fee burden. Per the official Batteries Plus franchising portal January 2026 disclosure, the 494 franchised stores reporting in Item 19 split into quartiles with bottom quartile averaging $491,356 in net revenue and top quartile averaging $1,608,969. The 3.3x spread is materially wider than brands like Mathnasium (estimated ~2x spread) or Home Instead (more compressed due to service-based model). On bottom-quartile revenue of $491,356, the 9% combined fee burden (5% royalty plus up to 4% marketing) equals approximately $44,000 per year in ongoing fees before COGS, labor, rent, utilities, insurance, Retail Management System fees, and inventory working capital. Industry-standard specialty retail COGS runs 45% to 55% of net revenue, meaning bottom-quartile stores have $220K to $270K in gross profit from which to fund labor, rent, and owner compensation after royalty and marketing. That is a tight envelope. The average across all 494 franchised stores ($935,755) is closer to sustainable, but the average masks the bottom-quartile distress. Pro forma modeling should assume bottom-quartile scenario and verify with at least 10 franchisee conversations covering stores in the 2-to-5-year tenure range (not 10+ year veterans whose economics reflect post-payback operations).
3. Core product categories (light bulbs, batteries, device repair) face material disruption: LED transition has extended bulb replacement cycles 5x to 10x, Amazon and big-box retailers commoditize battery sales, and the device repair category faces pressure from Best Buy Geek Squad, Asurion-owned uBreakiFix, manufacturer programs (Apple, Samsung), plus expanding Right-to-Repair legislation enabling DIY. Batteries Plus operates across three retail-and-service verticals, each with its own disruption profile. Light bulbs: the LED transition has effectively completed in residential and most commercial markets, and LED bulbs last 10 to 25 years versus 1 to 2 years for incandescent bulbs. This means the bulb replacement cycle per household has extended dramatically, structurally reducing the bulb replacement transaction volume that was originally part of the Batteries Plus Bulbs value proposition (the brand dropped "Bulbs" from marketing in part to reflect this shift). Batteries: Amazon Prime delivery, Walmart and Target private-label batteries, AutoZone and O'Reilly for automotive batteries, and Home Depot for lawn-equipment batteries all compete aggressively on commodity categories. Batteries Plus wins on specialty SKUs (medical devices, motorcycle batteries, hearing aids, specialty electronics), but these are lower-volume categories. Device repair: Best Buy Geek Squad, Asurion-owned uBreakiFix with over 700 locations, Apple official service, Samsung official service, Right-to-Repair legislation passing in states like New York, California, Colorado, and Minnesota that enable consumer DIY repair access to parts and diagnostic tools, all pressure the independent phone/tablet repair category. Strong operators in trade areas with limited direct competition can still build high-volume Batteries Plus stores, but buyers should evaluate their specific market's competitive density across all three categories before signing.

Verdict

Best fit for experienced specialty retail or auto-aftermarket operators with existing customer-facing skills and operational discipline, multi-unit franchise developers with $300,000 to $500,000 in deployable capital targeting 2 to 5 unit development agreements (fee discounts apply), operators in suburban or secondary trade areas with limited direct competition from Best Buy Geek Squad, uBreakiFix, or big-box battery retailers, buyers with commercial account development experience (Batteries Plus derives meaningful revenue from commercial customers, not just retail walk-ins), and candidates comfortable with a franchise brand whose PE parent is overdue for exit. The $262,646 to $496,996 investment range is accessible compared to convenience retail (7-Eleven) or hardware (Ace Hardware) categories, and the 9% combined fee burden is industry-competitive. Average unit volume of $935,755 across 494 reporting franchised stores is respectable. Not a good fit for first-time franchise buyers, operators in urban markets with 3 or more direct device repair competitors within 5 miles, buyers unable to invest in commercial account development alongside retail operations, liquidity-constrained buyers who cannot weather the bottom-quartile scenario ($491K net revenue with tight margins), or anyone signing a 10-year agreement without getting clear answers on Freeman Spogli's exit timeline. Before signing, demand written clarification of: Freeman Spogli's publicly or privately communicated exit timeline (sale, IPO, secondary), change-of-control provisions in the Franchise Agreement, specific Protected Territory definition and any online sales rights that bypass territory protection, actual quartile breakdown of company-owned store P&Ls (not imputed), the commercial account revenue split for top-quartile versus bottom-quartile stores, and the 2-to-5-year-tenure franchisee attrition rate.

This analysis reflects patterns visible in the Batteries Plus, L.L.C. 2025 FDD (fiscal year ending August 31, 2025), Franchise Chatter February 2025 and February 2026 FDD Talk posts, SharpSheets 2025, Franchise Times 2025 Top 400 (#124 ranking), Franchise Direct 2025 FDD summary, Peersense April 2026 analysis, FranChimp 2021 and 2024 FDD extracts, and the official Batteries Plus franchising portal at batteriesplusfranchise.com. Your specific Franchise Agreement terms, Protected Territory definition, Multiple Unit Territory eligibility, and change-of-control protections require review of your actual agreements. Have our AI FDD Analyzer review your specific Franchise Agreement for deal-level red flags.

Compare Batteries Plus with similar franchises

Buyers evaluating Batteries Plus typically also review these related FDD analyses for structural, unit-economics, and ownership comparison.

• 7-Eleven - Retail franchise comparison: traditional 5% royalty model versus 7-Eleven's Gross Profit Split
• Ace Hardware - Specialty retail comparison: traditional franchise versus member-owned cooperative
• Jamba - Private equity exit-timing pattern: Freeman Spogli's 10-year Batteries Plus hold versus Roark's Jamba hold

Key Questions Before Investing in Batteries Plus

These are the due diligence questions most buyers skip before signing a franchise agreement. They go beyond what's in the FDD.

• What is the realistic Year 1 take-home pay? After royalties (5% of gross sales), ad fund contributions (2% of gross sales), rent, labor, COGS, insurance, and debt service. What do you actually keep? Use our Profit Margin Calculator to find out.
• What is the closure rate? Check Item 20 of the FDD. How many Batteries Plus locations have closed, been terminated, or "ceased operations" in the last three years? A high number is a red flag.
• Are the territories truly protected? Item 12 defines your territory. Does Batteries Plus reserve the right to sell through alternative channels (delivery apps, online, grocery) in your territory? Many do.
• What happens when you want out? Item 17 covers renewal, termination, and transfer. What does Batteries Plus charge to transfer? Is there a non-compete after you leave? How long?
• What do current and former franchisees say? The FDD lists every franchisee's name and phone number. Call at least 10 current and 5 former ones. Our Validation Call Scripts tool gives you the exact questions to ask.
• Does the franchisor make money from you or with you? Check Item 21 (audited financials). Does Batteries Plus earn most of its revenue from royalties on operating franchisees, or from selling new franchise licenses? The latter is a warning sign.
• Can you afford to lose this money? If Batteries Plus fails in 18 months, what is your total financial exposure including the lease, SBA loan personal guarantee, and sunk costs? If the answer makes you sick, reconsider.

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Smart due diligence means comparing alternatives. Here are other retail franchises you should evaluate alongside Batteries Plus.