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Batteries Plus Bulbs Franchise ProfileRetail Franchises > Specialty Retail |
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.
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.
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.
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.
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Batteries Plus Bulbs Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| 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 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.
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.
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.
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.
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.
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.