Batteries Plus Franchise Cost, Owner Salary & Profit 2024

If you want to be a part of the world’s leading battery repair company, then this detailed guide on Batteries Plus franchise cost is just what you need!

And the best thing with this franchise is that you get to take advantage of not only the $110 billion battery industry but also the phone repair, lightning, car accessories industry, and more.

Wondering how? Then, keep on reading our guide and find out all that you must know about the Batteries Plus franchise.

Batteries Plus Franchise cOST

About Batteries Plus

Batteries Plus is a leading battery, accessory repair, and phone franchise that was founded in 1988 in Green Bay, Wisconsin, and started franchising in 1992.

This company offers customers multiple lines of service, such as battery store franchises, lighting franchises, and cell phone repair franchises, and is one of the best companies in the sector to invest in.

The company currently has over 700 stores in the U.S., most of which are franchise-owned. Looking at this number, we can say that Batteries Plus is a great opportunity for entrepreneurs looking to enter into the ever-growing battery replacement and repair industry.


Batteries Plus Franchise Model

Cost Or FeesAmount
Initial Investment       $197,400 – $465,600
FranchiseYes
Franchising Since1992
Franchise-Fee$49,500
Royalty-Fee5%
Liquidity$150,000
Estimated Outlets700+

How Much Does It Cost To Open A Batteries Plus Franchise?

How Much Does It Cost To Open A Batteries Plus Franchise

You can either own a single unit of the Batteries Plus franchise or apply for multi-unit ownership. The total initial investment and franchise fee would vary depending on the type of business model you choose.

For example, the franchise fee for a single unit of Batteries Plus franchise is $39,000. For the first unit of the multi-unit franchise model, the franchise fee is $39,000; for the second unit, the fee drops to $34,500; and for the third, $29,500, and so on.

Apart from the franchise fee, there are some fixed and variable costs that you’d have to bear. The most significant expenses of the Batteries Plus franchise include:

  • Initial Inventory – $52,000 to $63,500
  • Computer Software and Hardware – $31,000 to $31,500
  • Store Fixtures – $38,500 to $41,500
  • Additional Equipment and Supplies – $4,000 to $5,550

Other than this, the insurance cost, utility cost, lease deposits, etc., vary depending on the size and location of your unit. Overall, Batteries Plus is a low-entry barrier and affordable business to start.

So the total investment required to open a Batteries Plus franchise is $197,400 – $465,600.


Batteries Plus Franchise Requirements

You do not need to have industry experience in order to own this franchise.

Batteries Plus works with franchisees from all walks of life, from veterans and first responders loking to earn some extra money to families who want to start their own businesses.

In case you do not have the needed initial investment, then you can take advantage of the Batteries Plus tech franchise financing program, which will provide you with funding options.

But having said that, you must meet the financial requirements of the company to be eligible. For this, you should have a minimum liquid cash of $150,000 and a net worth of $350,000.


Batteries Plus Overall Profit & Revenue

So, as per the information available on the company’s website, based on the net sales of 672 Batteries Plus stores operating in the 2022 calendar year, the average net revenue was $887,666.

Of the 672 stores, 40%, or 272 stores, exceeded the average net revenue.

The top 75% of stores made net revenue of $1,011,389, while the bottom 75% made $649,748. Overall, the revenue numbers of this company are pretty high.

((https://www.batteriesplusfranchise.com/why-us/franchise-revenues/))


How Much Does Batteries Plus Franchise Owner Make?

As we saw in the section above, the average revenue of Batteries Plus franchise owners is $887,666, and as per the company’s website, the gross profit margin of these franchises is 51.9%.

So, taking these figures, we can calculate that Batteries Plus Franchise owners make $460,698 in net profit on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%887666.00
Rent6.01%(53370.92)
Insurance3.01%(26685.46)
Salaries12.03%(106741.84)
Franchise Royalty Fees3.01%(26685.46)
Utilities1.20%(10674.18)
Cost of Goods Sold (COGS)15.03%(133427.30)
Labor (Variable)7.82%(69382.19)
Total (Expenses)48.10%(426967.35)
Net Profit51.90%460698.65

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Batteries Plus Franchise

Using the average investment of 331,500 and average profits of $460,698, we can determine how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $331,500/ $460,698= 0.7 or 7months

So, based on these figures and the calculation, we can see that it will take 7 months for you to recoup your initial investment amount on average. However, this time period could be more or less depending on your actual total initial investment and profits earned.


Batteries Plus Franchise Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018663662-1
2019662643-19
2020643605-38

For the Franchised outlets:

  • In 2018, the failure rate was (1)/663×100≈ 0.15%
  • In 2019, the failure rate was (19)/662×100≈ 2.87%
  • In 2020, the failure rate was (38)/×643≈ 5.90%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20185778+21
20197885+7
20208595+10

For the Company-Owned outlets:

  • In 2018, the growth rate was (21)/57×100≈ 36.84%
  • In 2019, the growth rate was (7)/78×100≈ 8.97%
  • In 2020, the growth rate was (10)/85×100≈ 11.76%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018720740+20
2019740728-12
2020728700-28

For Total outlets:

  • In 2018, the growth rate was (20)/720×100≈ 2.7%
  • In 2019, the failure rate was (12)/740×100≈ 1.6%
  • In 2020, the failure rate was (28)/728×100≈ 3.8%

According to the data mentioned above, we can see that the franchised outlets for Batteries Plus have decreased for all three years, showing a failure rate between 0.15% and 5.90%.

On the other hand, company-owned Batteries Plus outlets grew for all three years, showing a growth rate between 36.84% and 11.76%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Batteries Plus’ growth rate increased only once in 2018 with a rate of 2.7%; for the remaining two years, there was a failure rate of 1.6% and 3.8%.


Batteries Plus Franchise Training And Support

Batteries Plus Franchise Training And Support

The initial training program of the Batteries Plus franchise is designed to show the franchisee how to leverage the many systems they have already in place.

So yes, the franchisor will offer you the initial and ongoing training so that you can stay on top of best practices and new products and services as they emerge. 

Your initial training will cover the following:

  • Costs and cash control
  • Equipment and product use
  • Store operations
  • Methods of controlling operating costs
  • Using their retail management system

Once you learn how to run the Batteries Plus franchise, you will be able to hit the ground running. And you will receive ongoing support as well to help you stay efficient.


Batteries Plus Franchise Terms Of Agreement And Renewal

The initial term of the agreement for the Batteries Plus franchise is 10 years. The agreement term will give you the right to work under the brand name and work as a franchisee for 10 years or unless you breach the contract.

After the 10-year agreement ends, you can renew your term. However, this may only be valid if the franchisor is happy with your performance.


Batteries Plus Franchise Obligations And Restrictions

So as a Batteries Plus franchisee, there are certain obligations and restrictions that must adhere to. These terms will be listed in the FDD, which the franchisor will be able to share with you.

However, some common obligations include not being allowed to sell any product or services that are not approved by Batteries Plus.

In addition, the franchisee will be required to sell everything that is listed in the agreement, and so on.


Batteries Plus Franchise Financial Assistance

So, the Batteries Plus franchise does not offer financial assistance. However, they can help you identify great financing options.

For this, you’d have to share information on your assets, credit history, investment, etc., so that they can identify the best financing option for you.

Since they do have a list of third-party financiers, they would be able to point you in that direction and help you get in touch with them.


Batteries Plus Franchise Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Battery World$9,5006.7%$350,000
Quick Mobile Repair$30,000N/A$125,000 – $165,000
Batteries Plus$49,5005%$197,400 – $465,600

Conclusion

Batteries Plus is one the best and leading franchise opportunities in this sector, so if you are interested in getting into a battery repair and service franchise, then this is the best opportunity for that.

The company has a good revenue-generating capacity and profit margin; the entry barriers are low, and you are not required to have experience in this field to own this franchise.

Currently, the franchisor is looking for people to join their franchise network, so you can check out their website to find more details.


FAQ’s

How Much Is The Franchise Fee For Batteries Plus?

The franchise fee for the Batteries Plus franchise is $49,500 for a single unit. If you want to open multiple units of this franchise, then the franchise fee will decrease with each unit you open.

Can I Fail With A Batteries Plus Franchise?

As we saw in the guide above, the failure rate of the Batteries Plus franchise for the franchised outlets that opened and closed between 2018 and 2020 was between 0.15% and 5.90%.

So yes, there is a possibility that you might fail with the Batteries Plus franchise. However, this should not deter you from considering this opportunity, as any business can fail or succeed depending on how well you manage it.

Who Owns Batteries Plus?

Batteries Plus was acquired by Roark Capital Group in 2007, so they currently own the company. 

Where Is The Headquarters Of Batteries Plus?

Batteries Plus is headquartered in Hartland, Wisconsin.

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