How to Finance a Batteries Plus Franchise: Costs and SBA Status
By Marc Cornella
A Batteries Plus franchise loan finances a specialty retail store that sells batteries, light bulbs and related products while also handling phone and device repair, key fob programming and sales to commercial customers. Each part of that mix shapes how a loan should be structured.
This article explains what it costs to open a Batteries Plus store, which numbers come from the franchisor’s 2025 disclosure document, how the brand’s SBA Franchise Directory listing works, and how buyers of new and existing stores typically assemble financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Batteries Plus; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Batteries Plus Franchise Loan at a Glance
- Estimated initial investment: $262,646 to $496,996 per location, according to figures the franchisor attributes to its 2025 FDD.
- Initial franchise fee: $49,500 for an individual unit, with a stated range of $15,000 to $49,500 depending on single-unit or multi-unit development.
- Ongoing fees: a royalty and a marketing contribution based on store revenue; confirm the current rates in Item 6 of the FDD.
- Financial qualifications: a net worth of at least $350,000 and liquid assets of $100,000 or more, according to the franchisor’s website.
- Store size: the franchisor looks for sites of at least 1,500 to 1,800 square feet in freestanding, strip-center or dual-use buildings.
- System size: the company reports more than 700 stores nationwide; its 2025 FDD data covers 494 franchised stores that operated for all of fiscal 2024.
- Franchisor financing: the franchisor says it does not offer financing but helps franchisees identify options.
- SBA Franchise Directory: listed as “Batteries Plus” (code S0196), with a note about the lease addendum when real estate secures the loan.
What Is Batteries Plus?
The first Batteries Plus store opened in Green Bay, Wisconsin, in 1988, and the company is now headquartered in Hartland, Wisconsin. The company reports more than 700 stores nationwide.
A Batteries Plus store sells replacement batteries for vehicles, phones, laptops, power tools, mobility devices and household electronics, along with light bulbs and lighting products. Many stores also repair phones and tablets, program key fobs and serve local businesses through commercial sales.
Store formats and opportunities. The franchisor markets several paths into the system, including retail stores, multi-unit development, auto battery and phone repair opportunities, wholesale or commercial sales, and resales of existing stores. The franchisor says the average multi-unit investor owns four franchises.
Support infrastructure. Franchisees train at a dedicated facility in Pewaukee, Wisconsin, and stores run on a retail management system for ordering, inventory and point of sale, backed by a 150,000-square-foot warehouse.
Why lenders view the brand the way they do. Lenders generally see a modest-footprint retail concept with a long history and revenue from both walk-in and commercial customers, but mostly leased space with modest hard collateral. Loans are therefore usually underwritten on cash flow and the borrower’s strength.
Batteries Plus Franchise Costs
Initial franchise fee. The franchisor states that the initial fee for an individual unit is $49,500, included in the total initial investment. Its investment page shows a range of $15,000 to $49,500 depending on whether the buyer develops a single store or multiple units. The franchisor also advertises franchise fee discounts for veterans and first responders. Item 5 of the FDD controls the actual fee schedule.
Real estate and build-out. Most stores are leased. The franchisor looks for freestanding buildings, strip-center spaces or dual-use buildings of at least 1,500 to 1,800 square feet in high-traffic areas. Leasehold improvements are listed at $0 to $116,000, a wide range that reflects how much work a space needs.
Equipment, fixtures and technology. The franchisor’s investment page lists equipment and fixtures at $33,000 to $39,000 and the retail management system at $38,986.
Opening inventory. Inventory is one of the largest single items, listed at $57,500 to $74,000.
Marketing and opening costs. A new store marketing campaign contribution of up to $6,000 is listed.
Total investment. The franchisor estimates that each location will cost $262,646 to $496,996 to get up and running, based on its 2025 FDD. The line items it highlights include:
- Initial franchise fee: $15,000 to $49,500
- New store marketing campaign contribution: up to $6,000
- Inventory: $57,500 to $74,000
- Equipment and fixtures: $33,000 to $39,000
- Leasehold improvements: $0 to $116,000
- Retail management system: $38,986
These are only some of the items, so they do not add up to the total; the full Item 7 table is what a lender will compare against your budget. Buyers financing a ground-up store should also read our overview of retail business start-up financing.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Batteries Plus charges a royalty and a marketing contribution calculated on store revenue. The current rates, payment frequency and any minimums appear in Item 6 of the FDD, and buyers should confirm them there rather than relying on older marketing materials.
Technology and incentives. Expect ongoing software and support costs for the retail management system. The franchisor has also run time-limited incentives, such as reduced fees for owners who commit to opening by a set date; lenders usually project cash flow at the standard fees once any incentive ends.
How lenders factor fees in. Because royalty and marketing are paid off the top line, a lender subtracts them before calculating the cash available for debt service. Lenders then stress-test projections for a slower ramp-up.
Franchisor Requirements for New Owners
- Net worth: at least $350,000, according to the franchisor’s website.
- Liquid assets: $100,000 or more.
- Experience: the franchisor says no specialized experience is required, and many franchisees had no background in electronics before joining.
- Territory: the franchisor says ideal territories have a population of at least 75,000 and enough business density to support commercial sales, and it reports more than 1,000 open territories in the U.S.
- Opening timeline: the franchise agreement calls for the store to open 9 months after signing, with real estate availability as the main variable.
The approval process. Candidates contact the franchise development team, receive and review the FDD, speak with the franchisor’s team and existing owners, and are approved before signing. Site selection, lease negotiation, build-out and training follow. Lining up a Batteries Plus franchise loan during the FDD review, rather than after signing, keeps the 9-month opening clock from adding pressure.
Ways to Own a Batteries Plus
Opening a new store. A new store requires the full initial investment, a lease, a build-out and an inventory purchase. Lenders underwrite it on projections, the owner’s experience and the strength of the local market, including the commercial customer base.
Buying an existing store. The franchisor lists resale opportunities. An existing store comes with sales history, staff, commercial accounts and an inventory that needs to be counted and valued. Transfers require franchisor approval, and the buyer usually signs the then-current franchise agreement. Lenders can underwrite actual results. Our article on buying a franchise resale covers transfer approval, and our overview of retail business acquisition financing explains how purchase loans are sized.
Financing Options for a Batteries Plus Franchise
SBA 7(a) loans. Because Batteries Plus is on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore. A single 7(a) loan can cover the franchise fee, leasehold improvements, equipment, inventory and working capital for a new store, or the purchase price of an existing one. The franchisor says it can connect franchisees with SBA lenders.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived fixed assets. It fits a Batteries Plus deal when the owner buys the building, such as a freestanding store or a dual-use building with space to lease out. Learn more about SBA 504 real estate loans.
Conventional term loans. Owners with strong credit, collateral and operating history, especially existing multi-unit operators, may use a conventional business loan to buy or open stores.
Equipment financing. Display fixtures, battery testers and chargers, repair benches and tools, key fob programming equipment and point-of-sale hardware can sometimes be financed separately from the main loan. See our page on retail equipment financing and leasing.
Working capital and lines of credit. Inventory is the store’s biggest working capital need. Battery demand also shifts with the weather, and commercial customers may pay on account. A line of credit can help fund inventory restocking and receivables. Explore retail working capital and lines of credit.
Seller financing on resales. In some resales, a seller may carry part of the price. A seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA rules may limit how a seller note can be structured or counted toward the buyer’s equity.
SBA Loans for Batteries Plus Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for SBA eligibility. A directory listing does not approve a borrower. It clears the franchise relationship so lenders can focus on the buyer and the store.
Batteries Plus on the directory. Batteries Plus is listed under code S0196. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum may not be executed.
What the note means. Batteries Plus uses a lease addendum, a document added to the store’s lease that gives the franchisor certain rights in the premises. If the borrower owns the property and pledges it as collateral for the SBA loan, there is no third-party lease, and that addendum should not be signed. The note matters mainly to owners who buy their building.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change, which leaves room for a multi-store owner to finance several locations. Our SBA loan calculator can help with early payment estimates; results are for planning only and are not an offer.
SBA application tips. Bring the current FDD and franchise agreement, a letter of intent or proposed lease, a sources and uses table that follows Item 7, proof of your equity injection, and projections that include a commercial sales plan.
How Lenders Evaluate a Batteries Plus Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and expect a personal guarantee.
Net worth and liquidity. The franchisor’s $350,000 net worth and $100,000 liquidity requirements are only minimums. Lenders want to see what remains after the equity injection. Our guide on how much franchise you can afford walks through the math.
Management and sales experience. Technical experience is not required, but lenders like to see management, retail or business-to-business sales experience, since commercial accounts are a key growth driver.
Business plan and projections. A strong plan models inventory turns, gross margin, payroll for counter and repair staff, rent, the royalty and marketing contribution, and a realistic ramp-up. It should show how the owner will win commercial accounts in the territory.
The FDD and franchise agreement. Lenders look at the term, renewal, transfer conditions, territory rights and Item 19. The 2025 FDD includes financial performance representations; lenders use them as context, not as a substitute for your own projections.
Site and lease. Lenders review the lease term, renewal options, rent and the lease addendum. The lease term should generally match or exceed the loan term.
Historical financials for existing stores. For a resale, provide several years of profit and loss statements, sales reports and tax returns, along with an inventory count and a list of commercial accounts.
Inventory, Equipment and Commercial Accounts
Inventory is both the largest working capital item and a source of collateral, though lenders typically value it at a discount and watch for slow-moving stock. Equipment is relatively light, which keeps the build-out manageable but limits hard collateral, one reason the SBA route is popular for this brand. Commercial customers who pay on account tie up cash in receivables, so size a line of credit with that in mind.
Multi-Unit Growth and Development Agreements
The franchisor offers multi-unit franchise fee discounts and says the average multi-unit investor owns four franchises. A development agreement sets a schedule for opening stores, and missing that schedule can cost the owner territory rights.
Financing a second or third store. Once the first store has a track record, lenders can look at its cash flow along with projections for the new store. Some owners finance each store separately, while others use a combined loan. Our article on multi-unit franchise financing explains the options.
Real-World Scenarios
A first-time owner opening a new store. A former operations manager signs for a single store, uses an SBA 7(a) loan for the build-out, fixtures, inventory and working capital, and contributes personal funds above the franchisor’s minimum. The lender looks closely at the commercial sales plan.
A buyer purchasing an existing store. A buyer acquires a store from a retiring franchisee. The lender bases the loan on the store’s tax returns and sales reports, the buyer counts and values inventory at closing, and the franchisor approves the transfer.
An owner buying the building. A multi-unit owner buys a freestanding building for a new store with an SBA 504 loan. Because the real estate secures the loan, the lease addendum is not signed, consistent with the directory note.
Common Mistakes to Avoid
- Treating the franchisor’s minimum liquidity as all the cash the deal needs
- Budgeting from older marketing materials instead of the current FDD
- Counting temporary fee incentives as permanent savings in projections
- Underestimating inventory and the cash tied up in commercial receivables
- Signing a lease before the lender has reviewed it and the lease addendum
- Starting the 9-month opening clock without financing lined up
- Overlooking the shelf life and turnover of inventory in a resale
For more pitfalls that apply across retail, read our article on retail store loan mistakes.
Next Steps to Finance Your Batteries Plus Franchise
Step 1: Confirm your qualifications. Make sure you meet the $350,000 net worth and $100,000 liquidity requirements, with additional cash for reserves.
Step 2: Review the FDD. Read Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Before signing, find out how an SBA or conventional loan would be sized for your store.
Step 4: Choose a site or store. Get a letter of intent on a site or review an existing store’s financials and inventory.
Step 5: Build your plan. Prepare projections, a commercial sales plan and a sources and uses table.
Step 6: Apply and coordinate approvals. Submit your loan application with the franchise agreement, lease or purchase documents and personal financial information, and align the timeline with the franchisor’s approval and opening schedule.
Step 7: Close your Batteries Plus franchise loan and open. Fund the build-out, order inventory, complete training and keep working capital in reserve.
Batteries Plus Franchise Loan FAQs
How much does it cost to open a Batteries Plus franchise?
The franchisor estimates an initial investment of $262,646 to $496,996 per location, based on its 2025 FDD. Costs vary with leasehold improvements, inventory and location.
What is the Batteries Plus franchise fee?
The franchisor says the initial fee for an individual unit is $49,500. Its investment page shows a range of $15,000 to $49,500 depending on single-unit or multi-unit development, and it advertises discounts for veterans and first responders.
What royalty does Batteries Plus charge?
The franchisor charges a royalty and marketing contribution based on store revenue. Check Item 6 of the current FDD for the exact rates.
How much money do I need to qualify?
The franchisor’s website states a minimum net worth of $350,000 and liquid assets of $100,000 or more. Lenders usually expect additional reserves.
Is Batteries Plus on the SBA Franchise Directory?
Yes. Batteries Plus is listed under code S0196, with a note that the lease addendum may not be signed when the real estate secures the SBA-guaranteed loan.
Can I get an SBA loan for a Batteries Plus franchise?
Yes, if you qualify. Because the brand is on the directory, an SBA 7(a) loan can finance a new store or a resale, subject to lender approval.
Do I need experience in electronics?
No. The franchisor says no specialized experience is required and trains owners in Pewaukee, Wisconsin, though management or sales experience strengthens a loan request.
Can I own more than one store?
Yes. The franchisor offers multi-unit fee discounts, and each additional store needs its own financing plan and approval.
How long is the Batteries Plus franchise term?
Item 17 of the current FDD sets the term, renewal and transfer conditions. Lenders compare the remaining term with the loan term, especially on a resale.
Does Batteries Plus offer financing?
The franchisor says it does not offer financing directly, but it helps franchisees identify options and can connect them with SBA lenders. Review Item 10 of the FDD for any financing disclosures.
Can I buy an existing Batteries Plus store?
Yes. The franchisor lists resale opportunities. A purchase requires franchisor approval, and lenders underwrite the store’s actual results.
Final Thoughts
A Batteries Plus store combines retail, service and commercial sales in a compact footprint. A well-prepared Batteries Plus franchise loan matches financing to that model: SBA or conventional debt for the build-out or purchase, a plan for inventory and receivables, and enough reserves to carry the store through its ramp-up.
US Professional Funding helps franchise owners and buyers finance store openings, acquisitions, equipment and working capital. Learn more about our franchise financing and retail business financing solutions.
