Interstate All Battery Center Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$179,200 - $438,000
Franchise Fee
$22,500
Total US Locations
162
Business Summary
Interstate All Battery Centers specialize in selling various types of batteries to both commercial and individual customers. The business also offers custom battery pack building services for batteries that lack standard replacements.
Corporate History
Interstate Battery Franchising & Development, Inc. was incorporated in Delaware on January 18, 2000. The company began offering franchises for Interstate All Battery Centers in May 2000. Interstate Battery Franchising & Development, Inc. is a subsidiary of Retail Acquisition and Development, Inc. (RAD), which in turn is a subsidiary of Interstate Battery System International, Inc. (IBSI). IBSI, the ultimate parent company, and its predecessors have been distributing batteries for over 65 years. Interstate Battery Franchising & Development, Inc.'s predecessor, John Willemsen Corp. (JWC), started selling batteries commercially in 1981, opened its first retail store as "Battery Warehouse" in 1985, and later changed its name to "Battery Patrol" in 1994. JWC began offering "Battery Patrol" franchises in 1997. Following an acquisition by RAD in December 1999, these operations were eventually converted to the "Interstate All Battery Center" brand.
Financial Overview
Investment Range
$179,200 - $438,000
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$37,500
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$34,600
Equipment Costs (High)
$222,000
Working Capital
$70,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Interstate Battery Franchising & Development, Inc. appears to be in a strong financial position. The company has significant positive working capital, with current assets of over $50 million exceeding current liabilities of approximately $14 million as of April 30, 2024. The financial statements show consistent net income over the past three fiscal years, with $6.18 million reported in 2024. The independent auditors issued an unqualified opinion, indicating no material misstatements or going concern issues.
Financing Details
Interstate Battery Franchising & Development, Inc. does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans, leases, or other financial obligations, and Interstate Battery Franchising & Development, Inc. does not guarantee these.
Performance Metrics
Total US Locations
162
Franchised Units
152
Corporate Units
10
Avg Square Footage
1,500
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Interstate Battery Franchising & Development, Inc. disclosed one litigation case in its history. This case involved an arbitration that Interstate Battery Franchising & Development, Inc. initiated on September 27, 2016, against a former Interstate All Battery Center franchisee, Charging Bison, LLC. The franchisee had claimed that certain financial performance disclosures in Interstate Battery Franchising & Development, Inc.'s Franchise Disclosure Document were false and fraudulent. After some court proceedings and a counterclaim from the franchisee, the parties reached a settlement on April 26, 2019. The settlement resulted in the mutual termination of the franchise agreement, with an affiliate of Interstate Battery Franchising & Development, Inc. purchasing the franchisee's inventory and equipment. The arbitration was dismissed with prejudice on May 16, 2019.
Bankruptcy History
Interstate Battery Franchising & Development, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Interstate All Battery Center franchise, franchisees must provide a written notice of their intent to renew between 12 and 24 months before the current term expires. They must ensure that Interstate Battery Franchising & Development, Inc. is still offering franchises at that time. Franchisees must also not be in default of their franchise agreement or any other agreements with Interstate Battery Franchising & Development, Inc. or its affiliates, and must not have been in default during the 12 months prior to giving notice. Additional conditions include making any required renovations to modernize the center, complying with current training requirements, having the legal right to stay in their business location, signing a general release, and operating the center according to the franchise agreement and system standards. Finally, franchisees must sign a new renewal addendum, which will incorporate the then-current form of franchise agreement, potentially with different terms and conditions.
Training & Support Program
Franchisor Assistance
Interstate Battery Franchising & Development, Inc. provides comprehensive support to its franchisees. Before opening, Interstate All Battery Center franchisees receive assistance with selecting their marketing area and site, including one free on-site evaluation, with additional visits costing a fee. They receive initial training through online modules, and consultation on construction, remodeling, employee selection, purchasing, and inventory. Franchisees are loaned operating manuals and receive assistance with setting up their computer systems, which they purchase or lease along with a software site license. After opening, Interstate Battery Franchising & Development, Inc. consults on and may implement a ramp-up marketing campaign at the franchisee's expense. Ongoing support includes advice on system developments, periodic inspections, and designating approved product sources. Franchisees also have the option to participate in a Contact Center Program for sales support. For technology, franchisees pay annual software access fees and monthly fees for help desk and network services. Interstate Battery Franchising & Development, Inc. also manages a National Marketing Fund, to which franchisees contribute 1.5% of their gross sales, and sets requirements for local store marketing expenditures.
Initial Training Hours
117
Training Location
Online/virtual
Ongoing Support
After opening, Interstate Battery Franchising & Development, Inc. provides its franchisees with ongoing advice and bulletins regarding system developments and improvements. They may offer additional training programs, which might incur a fee. Interstate Battery Franchising & Development, Inc. conducts periodic inspections of the Interstate All Battery Center locations and designates approved product suppliers. Franchisees also have access to monthly help desk services for software and network issues, and they must attend annual or periodic conventions. Additionally, an optional Contact Center Program is available for customized sales support.
Franchise Requirements
Ideal Candidate Profile
Interstate Battery Franchising & Development, Inc. primarily seeks existing Interstate All Battery Center franchisees in good standing or existing Interstate Batteries independent distributors in good standing to purchase new franchises. The ideal candidate, or their designated Operating Principal, must have full control over the day-to-day activities of the Interstate All Battery Center, including its financial performance and operational standards. They are required to devote full-time and best efforts to supervising the development and operation of the Center and must successfully complete the initial training program and any other required training. Additionally, the franchisee must employ at least one general store manager and one dedicated business-to-business (B2B) salesperson who have successfully completed the initial training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Interstate All Battery Center territories are defined as a "Marketing Area," consisting of an area no less than a 3-mile radius surrounding the franchised center. Interstate Battery Franchising & Development, Inc. may grant a larger Marketing Area on a case-by-case basis.
Staffing Notes
Interstate All Battery Center locations must always employ at least one general store manager and one dedicated business-to-business (B2B) salesperson, both of whom must have successfully completed Interstate Battery Franchising & Development, Inc.'s initial training program. The center's daily operations must be under the direct, on-premises supervision of a trained manager, who does not necessarily need to be an owner. If the franchisee entity has multiple owners, an approved Operating Principal must be designated. This Operating Principal must have full control over day-to-day activities, dedicate their full time and effort to supervising the center's development and operation, and also complete all required training. Franchisees are solely responsible for all other employment matters, including hiring, firing, scheduling, and training their staff.