Interstate Battery Franchising & Development, Inc.
4301 121st Street
Interstate Battery Franchising & Development, Inc. is a Delaware corporation with its principal place of business at 301 121st Street, Urbandale, Iowa 50323. They incorporated in Delaware on January 18, 2000.
Interstate All Battery Centers specialize in the sale of batteries to both commercial users and consumers. The Centers may not sell or offer for sale any product that we have not approved. All Centers must carry certain Interstate products, as well as other brands and types of batteries that we specify from time to time. The Centers also offer custom battery pack building, including battery packs for batteries that do not have a standard replacement. A typical Center occupies approximately 1,200 to 1,800 square feet, and may be either a stand-alone building or a strip shopping center location. The Centers operate under a distinctive set of specifications, procedures, and business methods (collectively, the “System”). We have described our mandatory and suggested specifications and procedures for the operation of a Center in a set of confidential operating manuals (the “Manuals”). We will loan you one set of the Manuals for your Center. The things that differentiate our Centers include, among other things, the inventory of products; our distinctive exterior and interior design, decor, color scheme, fixtures, and furnishings; and our standards and specifications for operations, equipment, supplies, and marketing. We have the right to change these or any other elements of the System. All Centers must use prescribed software that records sales, accounts receivable, inventory information, financial information, and new and updated customer profiles (the “Software”). The Software is proprietary, but we do not own it. The computer system that we require for the Centers is highly customized and cannot be modified, efficiently and without degradation to the operation of the Software, to work with your existing computer hardware. Based on our affiliate's experience with Interstate All Battery Centers and Battery Patrol stores, we have found that it is inefficient and costly to reconfigure the hard drive and other equipment on an individual basis, and to maintain and to support varied systems. Therefore, you must purchase the computer hardware on which the Software is loaded from us. The installation period of the network varies by market.
1 Ongoing Lawsuits
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Franchimp Summary Rating
2/10
Investment Accessibility
2/10
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Upfront Franchise Fees
Minimum: $55,100 Maximum: $67,500
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $179,200 Maximum: $438,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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