As you consider opening one or more Batteries Plus franchises, one of the most important factors to keep in mind is the potential investment costs. The expenses range from the franchise fee to initial inventory to real estate, among others.
The Batteries Plus franchise model is powered by multiple industry verticals that combine to generate upwards of $60 billion in revenue annually. So, the ability to operate a profitable retail business is built into the franchise opportunity, which helps offset the operational costs.
Here are a few factors to consider when deciding whether to become a Batteries Plus franchisee, which should help you approximate a realistic budget and timeline:
The total initial investment depends on numerous factors, particularly the type of franchise agreement.
- Single-Unit – The initial franchise fee for a single-unit agreement is $39,000. This non-refundable payment is due upon signing the franchise agreement. The fee awards you the license to operate a Batteries Plus franchise.
- Multi-Unit – The structure of Batteries Plus multi-unit agreements provides financial incentives to franchisees looking to open two or more locations. The franchise fee for the first unit is still $39,000 but the second unit drops to $34,500. The fee for the third store is lower again, at $29,500 and each additional unit after that is $25,000.
A full breakdown of the multi-unit franchise programs can be found in Item 5 of the Batteries Plus Franchise Disclosure Document (FDD).
Beyond the initial franchise fee, there are specific fixed and variable costs associated with opening a Batteries Plus franchise. Some of the more significant fixed expenses include:
- Initial Inventory – $52,000 to $63,500
- Store Fixtures – $38,500 to $41,500
- Computer Software and Hardware – $31,000 to $31,500
- Additional Equipment and Supplies – $4,000 to $5,550
In total, these fixed costs range from $125,500 on the low end to $142,050 on the high end. There are additional expenses franchisees should expect, including training and marketing. Meanwhile, there are variable costs that are important to consider:
- Cost of Real Estate – The size of Batteries Plus stores range from 1,200 to 1,800 square feet. The greater the square footage, the higher real estate costs.
- Leasehold Improvements – Depending on the site, there may be improvements required to comply with Batteries Plus’ approved plans and specifications.
- Signage – The cost of interior and exterior signage depends primarily on the site, the number of signs and the size of the signage.
Insurance, lease deposits and utility costs will also be variable based on the size and location of your store. Additionally, all franchisees pay a 5 percent royalty fee and 1 percent national marketing fee each month, which are both a portion of total net revenue.
In sum, the total initial investment will range between $209,900 and $393,930. For a full list of estimated investment costs, refer to Item 7 in the Batteries Plus FDD.
The Batteries Plus Franchise Model is Built for Multi-Unit Franchising
With a low cost of entry and recession-resistant business model, Batteries Plus offers entrepreneurs with the goal of multi-unit expansion an unparalleled opportunity.
As a franchisee, you provide your community with products that they cannot live without, including specialty batteries for cars, boats, medical devices, smartphones and many other devices. Consumers can also find virtually every type of lighting imaginable, as well as get their mobile devices repaired and key fob replaced.
More importantly, consumers would be hard-pressed to find these products anywhere else as conveniently as they can at Batteries Plus. Franchisees take advantage of an omni-channel business model that allows customers to find and order products online for in-store pickup at any of the more than 700 locations across the country. Franchisees have access to an additional 9,000 products available in a centralized warehouse, most of which can be delivered to stores in 1-2 days.
The depth and range of products and services also enables Batteries Plus franchisees to diversify their revenue streams with a robust national accounts program and through partnerships with other businesses, including medical facilities, schools, manufacturers and many more.
By developing and making continual investments in the Batteries Plus business model, franchisees are able to enjoy a 52.9 percent average gross margin and an average unit volume of $838,000.*
Get Started Investing in a Proven, Stable, Scalable Retail Franchise
Whether you’re interested in owning one Batteries Plus franchise or adding to your existing multi-concept franchise portfolio, let’s get the conversation started.
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*Net revenue average of $1,359,229, average unit volume, and average merchandise margin is based on the net sales average for the 156 stores that represent the top 25% of all 627 stores open during the entire 2019 calendar year. See Item 19 of our 2020 FDD for further details.