![Batteries Plus logo](https://cdn.brandfetch.io/batteriesplus.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
127
Government-backed loans issued
Default rate
13.5%
vs <3% typical · system-wide
5-yr default rate
5.9%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$49.3M
Avg loan size
$389K
Participating lenders
66
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 61/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-0.5% YoY) suggests system contraction despite mature brand presence
- 02HIGHDual litigation with both franchisor suing franchisees and franchisees suing franchisor indicates relationship friction and potential operational/contractual disputes
- 03MINORNet income of $105,544 on average revenue of $887,757 yields only 11.9% net margin — tight profitability relative to $252K-$493K initial investment and 5% ongoing royalties
- 04MEDNo Item 19 (Financial Performance Representations) disclosed — unable to verify franchisor's revenue/income claims or validate unit-level economics independently
- 05MINORHigh initial investment range ($252K-$493K) combined with modest net returns creates 2.4-4.7 year breakeven window with execution risk
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.