Big_O_Tires 2025 Franchise FAQ - FDD Ninja

Question 1

What was the average Total Income of all Part B Reporting Big O Tires Stores?

Accepted Answer

The average Total Income of all of the Part B Reporting Stores was \$2,941,799 and the following averages represent a percentage of income of these Part B Reporting Stores: Cost of Goods Sold, 42.1%; Gross Profit, 57.9%, Total Labor, 26.7%; Total Operating Expense, 49.1%; Net Income From Operations, 8.8%.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 2

How many Big O Tires outlets were terminated during the fiscal year ending March 31, 2023?

Accepted Answer

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations- Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| Arizona | FYE March 31, 2023 | 65 | 1 | 1 | 0 | 0 | 0 | 65 |
|  | FYE March 31, 2024 | 65 | 1 | 0 | 0 | 0 | 0 | 66 |
|  | FYE March 31, 2025 | 66 | 1 | 0 | 0 | 0 | 0 | 67 |
| Arkansas | FYE March 31, 2023 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
|  | FYE March 31, 2024 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
|  | FYE M

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 3

What percentage of income did the Cost of Goods Sold represent for the average Part B Reporting Big O Tires Stores?

Accepted Answer

The average Total Income of all of the Part B Reporting Stores was \$2,941,799 and the following averages represent a percentage of income of these Part B Reporting Stores: Cost of Goods Sold, 42.1%; Gross Profit, 57.9%, Total Labor, 26.7%; Total Operating Expense, 49.1%; Net Income From Operations, 8.8%.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 4

What percentage of income did the Gross Profit represent for the average Part B Reporting Big O Tires Stores?

Accepted Answer

The average Total Income of all of the Part B Reporting Stores was \$2,941,799 and the following averages represent a percentage of income of these Part B Reporting Stores: Cost of Goods Sold, 42.1%; Gross Profit, 57.9%, Total Labor, 26.7%; Total Operating Expense, 49.1%; Net Income From Operations, 8.8%.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 5

What percentage of income did the Net Income From Operations represent for the average Part B Reporting Big O Tires Stores?

Accepted Answer

Part B of this financial performance representation includes the average Total Income, Gross Profit, and Net Income, in addition to certain expense and margin information for franchised U.S. Big O Tires Stores that operated from January 1, 2024 through December 31, 2024 and met the following criteria: (i) the Store had operated for at least 12 consecutive months as of December 31, 2024, (ii) the Store furnished financial data to us for the year 2024 with information regarding expenses that we believe to be reliable, and (iii) the Store was under the same ownership for the period from January 1, 2024 through December 31, 2024. There were 463 total operating franchised outlets in the U.S. as of December 31, 2024 and 280 met the criteria (the "Part B Reporting Stores"), representing approximately 61.3% of the U.S. outlets of any category of Store (that is, franchised PDF Stores and Franchised BFF Stores). There were 6 Stores that closed for various reasons during 2024, none of which were open less than 12 months.

Of the 280 Part B Reporting Stores, as of December 31, 2024: (a) 8 (about 2.9%) were franchised PDF Stores, and 272 (about 97.1%) were franchised BFF Stores; and (b) the 8 franchised PDF Stores constituted 32.0% of all the franchised PDF Stores, and the 272 franchised BFF Stores constituted about 62.1% of all the franchised BFF Stores.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 6

What percentage of income did the Total Labor represent for the average Part B Reporting Big O Tires Stores?

Accepted Answer

The average Total Income of all of the Part B Reporting Stores was \$2,941,799 and the following averages represent a percentage of income of these Part B Reporting Stores: Cost of Goods Sold, 42.1%; Gross Profit, 57.9%, Total Labor, 26.7%; Total Operating Expense, 49.1%; Net Income From Operations, 8.8%.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 7

What percentage of income did the Total Operating Expense represent for the average Part B Reporting Big O Tires Stores?

Accepted Answer

The average Total Income of all of the Part B Reporting Stores was \$2,941,799 and the following averages represent a percentage of income of these Part B Reporting Stores: Cost of Goods Sold, 42.1%; Gross Profit, 57.9%, Total Labor, 26.7%; Total Operating Expense, 49.1%; Net Income From Operations, 8.8%.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)

Question 8

For Big O Tires, what was the total number of Business Format Franchise outlets at the end of the year, FYE March 31, 2025?

Accepted Answer

- (2) The franchised outlets include both PDF Stores and BFF Stores. As of March 31, 2025, the 461 franchised outlets consisted of 24 PDF Stores and 437 BFF Stores. See Note 1 to Table 3 of this Item 20.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 9

What was the total number of Big O Tires business format franchise outlets at the start of the fiscal year ending March 31, 2024?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | FYE March 31, 2023 | 434 | 460 | +26 |
|  | FYE March 31, 2024 | 460 | 462 | +2 |
|  | FYE March 31, 2025 | 462 | 461 | -1 |
| Company-Owned | FYE March 31, 2023 | 32 | 17 | -15 |
|  | FYE March 31, 2024 | 17 | 0 | -17 |
|  | FYE March 31, 2025 | 0 | 0 | 0 |
| Total Outlets | FYE March 31, 2023 | 466 | 477 | +11 |
|  | FYE March 31, 2024 | 477 | 462 | -15 |
|  | FYE March 31, 2025 | 462 | 461 | -1 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 10

For Big O Tires, what was the total number of Business Format Franchise outlets at the start of the year, FYE March 31, 2023?

Accepted Answer

| State | Year | Business Format Franchise Outlets at Start of Year | Business Format Franchise Outlets at End of Year |
|---|---|---|---|
| Virginia | FYE March 31, 2023 | 2 | 2 |
|  | FYE March 31, 2024 | 2 | 2 |
|  | FYE March 31, 2025 | 2 | 2 |
| Washington | FYE March 31, 2023 | 2 | 7 |
|  | FYE March 31, 2024 | 7 | 7 |
|  | FYE March 31, 2025 | 7 | 7 |
| Wyoming | FYE March 31, 2023 | 7 | 6 |
|  | FYE March 31, 2024 | 6 | 6 |
|  | FYE March 31, 2025 | 6 | 6 |
| Total | FYE March 31, 2023 | 400 | 434 |
|  | FYE March 31, 2024 | 434 | 438 |
|  | FYE March 31, 2025 | 438 | 437 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 11

What was the total number of Big O Tires franchise transfers across all states for the fiscal year ending March 31, 2023?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
| Tennessee | FYE March 31, 2023 | 1 |
|  | FYE March 31, 2024 | 2 |
|  | FYE March 31, 2025 | 4(1) |
| Texas | FYE March 31, 2023 | 0 |
|  | FYE March 31, 2024 | 1 |
|  | FYE March 31, 2025 | 5(1) |
| Utah | FYE March 31, 2023 | 10 |
|  | FYE March 31, 2024 | 3 |
|  | FYE March 31, 2025 | 1 |
| Washington | FYE March 31, 2023 | 0 |
|  | FYE March 31, 2024 | 0 |
|  | FYE March 31, 2025 | 1(1) |
| Wyoming | FYE March 31, 2023 | 0 |
|  | FYE March 31, 2024 | 0 |
|  | FYE March 31, 2025 | 1 |
| Virginia | FYE March 31, 2023 | 2 |
|  | FYE March 31, 2024 | 0 |
|  | FYE March 31, 2025 | 0 |
| Total | FYE March 31, 2023 | 44 |
|  | FYE March 31, 2024 | 24 |
|  | FYE March 31, 2025 | 19 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 12

What was the total number of Big O Tires outlets that ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor during the fiscal year ending March 31, 2025?

Accepted Answer

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations- Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| Arizona | FYE March 31, 2023 | 65 | 1 | 1 | 0 | 0 | 0 | 65 |
|  | FYE March 31, 2024 | 65 | 1 | 0 | 0 | 0 | 0 | 66 |
|  | FYE March 31, 2025 | 66 | 1 | 0 | 0 | 0 | 0 | 67 |
| Arkansas | FYE March 31, 2023 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
|  | FYE March 31, 2024 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
|  | FYE March 31, 2025 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
| California | FYE March 31, 2023 | 97 | 1 | 1 | 0 | 0 | 0 | 97 |
|  | FYE March 31, 2024 | 97 | 2 | 4 | 2 | 0 | 0 | 93 |
|  | FYE March 31, 20

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 13

What was the total number of Big O Tires outlets closed during the year ending March 31, 2024?

Accepted Answer

| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | Column 7 | Column 8 |
|---|---|---|---|---|---|---|---|
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired From Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of the Year |
| Indiana | FYE March 31, 2023 | 1 | 0 | 0 | 0 | 1 | 0 |
|  | FYE March 31, 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
| Iowa | FYE March 31, 2023 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | FYE March 31, 2024 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kansas | FYE March 31, 2023 | 7 | 0 | 0 | 1 | 5 | 1 |
|  | FYE March 31, 2024 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minnesota | FYE March 31, 2023 | 14 | 0 | 0 | 0 | 0 | 14 |
|  | FYE March 31, 2024 | 14 | 0 | 0 | 14 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
| Missouri | FYE March 31, 2023 | 9 | 0 | 0 | 0 | 8 | 1 |
|  | FYE March 31, 2024 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
| Totals | FYE March 31, 2023 | 32 | 0 | 0 | 1 | 14 | 17 |
|  | FYE March 31, 2024 | 17 | 0 | 0 | 17 | 0 | 0 |
|  | FYE March 31, 2025 | 0 | 0 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 14

What is the total projected number of new franchised Big O Tires outlets expected to open in the next fiscal year across all states listed in the table?

Accepted Answer

| State | Franchise Agreements Signed But Store Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company Owned Openings in the Next Fiscal Year |
|---|---|---|---|
| Arizona | 4 | 5 | 0 |
| Colorado | 2 | 2 | 0 |
| Georgia | 1 | 0 | 0 |
| Kansas | 0 | 2 | 0 |
| Nebraska | 1 | 0 | 0 |
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| State | Franchise Agreements Signed But Store Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company Owned Openings in the Next Fiscal Year |
|---|---|---|---|
| Oklahoma | 1 | 1 | 0 |
| Texas | 1 | 0 | 0 |
| Utah | 2 | 2 | 0 |
| Washington | 1 | 1 | 0 |
| Total | 13 | 13 | 0 |
All of the new franchised outlets proj

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 15

According to the Big O Tires Road Hazard Service Contract Program Franchisee Sales Agreement, what is the difference between 'PRIMARY CONTRACT HOLDER(S)' and 'SECONDARY CONTRACT HOLDER(S)'?

Accepted Answer

- (b) The term "PRIMARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from the SELLER.
- (c) The term "SECONDARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from any Big O Tires Franchisee authorized to sell CONTRACTS by COMPANY other than SELLER to whom SELLER provides repair or replacement service under PROGRAM.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 16

In the context of Big O Tires, what is the distinction between 'PRIMARY CONTRACT HOLDER(S)' and 'SECONDARY CONTRACT HOLDER(S)'?

Accepted Answer

- (a) The term "CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipient(s) of a CONTRACT under the PROGRAM.
- (b) The term "PRIMARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from the SELLER.
- (c) The term "SECONDARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from any Big O Tires Franchisee authorized to sell CONTRACTS by COMPANY other than SELLER to whom SELLER provides repair or replacement service under PROGRAM.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 17

What are all the fees a Big O Tires franchisee might pay, considering both the initial fees in Item 5 and the other fees listed in Item 6?

Accepted Answer

[Item 5: INITIAL FEES]

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of $17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to $100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

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[Item 5: INITIAL FEES]

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard $17,500 initial franchise fee. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

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Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to $15,000 depending upon the services the franchise broker is providing.

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[Item 5: INITIAL FEES]

Associate Franchise Discount. Full-time employees (also referred to as "associates") of Big O Tires, LLC or affiliated companies (such as TBC Retail Holdings) who have been employees on an uninterrupted basis for at least five years will be eligible for a reduction of the initial franchise fee to $10,000 for a newly developed Big O Store. The employee must resign his or her position with Big O Tires, LLC or the affiliated company and assume full-time active management of the Big O franchise.

![](_page_15_Picture_0.jpeg)

The associate will not be entitled to this associate franchise discount if the associate purchases an existing Big O franchise. Also, to be entitled to this associate franchise discount, the associate must be acquiring a majority interest in the new franchise. If the associate does not continue to meet this ownership requirement for at least two years after acquiring the new franchise, the associate must pay us the difference between the initial franchise fee which would have been due had the associate not qualified for the reduction (which is now $17,500) and the reduced initial franchise fee the associate did pay.

U.S.

Military Veterans & First Responders.

We will waive the initial franchise fee for franchisees who are U.S. military veterans and first responders (as established in accordance with our policies as we may adopt periodically) and for franchisees that are corporations, limited liability companies or other entities for which a U.S. military veteran or first responder owns a majority of the equity interest ("U.S.

Military Veteran & First Responder Program").

The U.S.

Military Veteran & First Responder Program is available to qualified individuals who either have received an honorable discharge from one of the U.S.

Armed Forces (i.e., Army, Navy, Air Force, Coast Guard or Marine Corps), or are currently serving in one of the U.S.

Armed Forces and eligible to receive an honorable discharge, or their entities as noted above.

It is also available to first responders who were employed for a minimum of five years as a law enforcement officer, medical doctor, nurse, emergency medical technician or fire fighter, and who apply for a franchise after ending their service as a first responder.

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[Item 5: INITIAL FEES]

If you are an existing franchisee in good standing whose Franchise Agreement is expiring, you may renew your franchise by signing our then current form of Franchise Agreement ("Successor Franchise Agreement") for a successor term of 10 years. We may, in our sole discretion, agree to a shorter Successor Franchise Agreement term if you are unable to extend your lease or sublease for the full Successor Franchise Agreement term. We waive the payment of the initial franchise fee for a Successor Franchise Agreement, but you must pay a successor franchise administration fee. See Item 6 below.

If you pay the initial franchise fee when you sign your Franchise Agreement without having selected a site, and an existing Big O Store is subsequently transferred to you, you will receive a credit against your trade account with us in an amount equal to the amount you paid for the initial franchise fee, less the amount of the transfer fee that would have been applicable to that transfer.

First Option Rights. Subject to certain exceptions generally described in this paragraph or Item 12, each franchisee is granted an option to apply for any new Big O franchise to be located within five miles of the franchisee's existing Big O Store, determined as a radius of five miles from the geographic center of your location. You must meet certain conditions to exercise your First Option Rights, including that you are in compliance with your Franchise Agreement, as determined solely by Big O. If you apply for a Big O franchise using your first option rights, the franchise deposit of $10,000 must be paid with your application to exercise your first option rights. The balance of the initial franchise fee must be paid to us at the time specified by us in our notice of the right to exercise first option rights, but in no event later than the earlier of: (a) date you sign the new Franchise Agreement, or (b) 120 days from the deadline for submitting an application to Big O to exercise your first option rights (this deadline is 30 days after Big O gives notice that the franchisee may exercise its first option rights). The franchise deposit becomes nonrefundable upon our approval of your franchise application. See Item 12 for a more detailed discussion on your First Option rights.

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[Item 6: OTHER FEES]

- Note 4: The "Franchise Advisory Council" or "FAC" is a group of elected representatives of our franchisees who meet regularly with our management, provide input to our strategic planning and present viewpoints on issues involving the franchise relationship.

The FAC has approved an increase in the National Marketing Program fee by .65% from .25% to .9% based on certain marketing programs which may be changed or terminated in the future, as described in Item 11.

- Note 5: You must maintain an inventory of Big O brand tires, other approved brands of tires and other products in amounts and variety as we may reasonably require.

Your initial inventory will cost between $75,000 and $187,500.

Product prices may include freight, fuel charges, and other delivery costs included in a stated delivered price or as stated separately.

- Note 6: These fees reflect Big O's arrangement with Navex, which currently provides the computerized point of sale system that is referred to as the "BOT POS System" in this disclosure document, and those fee that will be paid to our next designated supplier for the BOT POS System, Tekmetric, when you convert to that system.

You must acquire the BOT POS System.

You must become a licensee of Navex or Tekmetric in order to acquire the BOT POS System.

All franchisees acquiring the BOT POS System must pay (i) the Navex software license fee (and, when the Tekmetric system is implemented, the Tekmetric implementation fee) to Big O, (ii) fees for installation, conversion, training and onsite support to Big O, (iii) monthly subscription fees for licensing, maintenance, support, and training to Big O, or as otherwise directed by Navex or Tekmetric and Big O, and (iv) if applicable, a transfer fee, upon the transfer of a Big O Store subject to a Navex EULA or Tekmetric EULA.

These fees may change periodically.

The monthly subscription fee also provides you with access to third party vendor data, such as the Epicor suite of automotive repair and service catalogues.

Navex and Tekmetric may also charge hourly rates and other charges for services (such as installation, training and consulting) not included in the contracted maintenance, support, and training services.

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[Item 12: TERRITORY]

Additional Outlets. If you have been granted a Big O Store franchise, you may request and we will consider, if you wish for us to do so, granting you an option to apply to develop an additional Big O Store in an open market area for a period of time determined by us in our sole discretion from the date of a Market Reservation Agreement you sign with us if this option is granted. In order for you to obtain this option, you and Big O must agree to the area in which you may develop the additional Store (which may not conflict with the rights of any other validly existing Big O franchisee), you must sign a Market Reservation Agreement in the form of Exhibit Q to this disclosure document and you must pay Big O a fee. The fee will vary from one market area to the next, but currently ranges from $2,500 to $6,000. We will agree to protect the market area designated, not awarding a franchise for or operating our own Big O Store within that market area for 12 months. This fee is only for reserving the right to open one Store in the agreed market area, does not guaranty that your application for a Big O Tires franchise will be approved, does not apply to the initial franchise fee for the additional Big O Store if you are approved, and is not refundable under any circumstances.

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[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

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### Explanatory Notes

General Note: We are relying on our years of experience in the retail tire store and automotive repair and service business to compile these estimates. The availability and terms of financing, will vary considerably depending on the methods and amount of financing, your creditworthiness, collateral you may have and lending policies of financial institutions. The equipment and other items are shown in full, although they may be financed or leased. You are encouraged to discuss the operations of a Big O Store with Big O franchisees. (See Exhibits K-1 and K-2 for lists of current and certain former Big O franchisees.) You should also review these figures carefully with a business advisor before making any decision to purchase a Big O Store franchise. None of the fees or payments to us listed in this Item are refundable, unless otherwise provided. Payments to third parties may or may not be refundable depending on your agreement with such third parties; however, usually such payments are nonrefundable.

- Note 1: Initial Franchise Fee.

The initial franchise fee may vary as described in Item 5.

You must reimburse us for any taxes (other than income taxes) we pay on your initial franchise fee so that the net amount received by us is as set forth in the Franchise Agreement.

In the event any incentive reduces the amount of the initial franchise fee to less than $10,000, you will still be required to pay $10,000 with the franchise application and any amount of this payment in excess of your initial franchise fee will be applied to your accounts receivable for products purchased from us.

- Note 2: Initial Training Fees, Travel and Lodging Expenses.

We may charge you training fees, except that the initial Online Training, Facilitated Training, and on-location training program for one person are included in the initial franchise fee.

In addition, you will have to bear expenses arising in connection with your training, such as travel, daily transportation to and from the training facility, and any other living expenses.

We will pay for lodging during the classroom portion of the new franchisee orientation training program.

See Item 11 under "Training" for more details.

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[Item 5: INITIAL FEES]

Inventory.

IMPORTANT:

Question 18

How does the financing offered by Big O Tires in Item 10 relate to the initial investment costs outlined in Item 7?

Accepted Answer

Note 10: Total Estimated Initial Investment. We have relied on our experience since 1962 in the retail tire store and automotive service business in compiling these estimates. You should review these figures carefully with a business advisor before making any decision to purchase a franchise. Other than the limited situations discussed in Item 10 of this disclosure document, we do not offer financing directly or indirectly for any part of the initial investment.

Note 14: Existing Franchisee Growth Program: Eligibility: This financing is available to existing franchisees (who have operated a Big O Store for at least five years) that meet certain credit and performance requirements, who are acquiring an existing and operating automotive business from a competitor and converting it to a Big O Store, and who agree to an extended 20-year term for the franchise. These franchisees will be eligible for $500,000 in financing for purposes of remodeling the converted business. Big O's current performance metrics for this financing consider the franchisee's Google ratings, net promoter scores, customer complaints, Big O Tires-branded tires sales share, and an Image Certification conducted by us. Financing under this program will require that you have segregated collateral to secure the loan in an amount of at least 125% of the loan amount. The performance and credit requirements, and the decision as to whether the franchisee meets these requirements, are determined at our discretion. Payment Terms: Interest only payments for five years, with the full principal and interest due on the fifth anniversary. See, Exhibit G, Promissory Note.

Note 9: Financing of Delinquent Payments: Big O may, in its discretion (without waiving any other rights available) enter into negotiated payment arrangements with franchisees who have been late in payment. Under these circumstances, we may charge a loan origination fee, we may impose restrictions on the franchisee's operations and we may require security and/or other consideration for the loan.

| Expenditures | Low | High | When Due | Method of Payment | Refundability | To Whom Payment Made |
|---|---|---|---|---|---|---|
| Initial Franchise Fee/Minimum | $10,000 | $17,500 | See Item 5 | See Item 5 | See Item 5 | Big O |
| Real Estate Leases (Three Months’ Rent Plus Security Deposit) (See Note 3) | $40,000 | $160,000 | As Specified in Lease | As Agreed | Some or all of the security deposit may be refundable at the end of the lease term | Big O or Third Parties |
| Equipment, fixtures and other fixed assets (See Note 4) | $250,000 | $395,000 | See Note 4 | As Agreed | Nonrefundable | Big O, its Affiliates, and Third Parties |
| Initial Inventory | $75,000 | $187,500 | As Incurred | As Agreed | Nonrefundable | Big O and Third Parties |
| Computer Hardware and Software | $20,500 | $33,500 | As Agreed | As Agreed | Nonrefundable | Big O and Third |
| TOTAL ESTIMATED INITIAL | $511,500 | $1,882,500 |  |  |  |  |
| INVESTMENT |  |  |  |  |  |  |

Question 19

How does the initial franchise fee for Big O Tires (Item 5) compare to the other fees that a franchisee might incur as listed in Item 6?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025.

Question 20

How does the initial franchise fee for Big O Tires (Item 5) compare to the financing options available in Item 10, considering the franchisee's obligations in Item 9?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025.

Question 21

How does the initial franchise fee for Big O Tires (Item 5) compare to the financing options available in Item 10, considering the franchisee's obligations in Item 9 and the territory granted in Item 12?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information.

Question 22

How does the initial training fee for Big O Tires in Item 7 relate to the pre-opening assistance provided in Item 11?

Accepted Answer

- Note 2: Initial Training Fees, Travel and Lodging Expenses.

We may charge you training fees, except that the initial Online Training, Facilitated Training, and on-location training program for one person are included in the initial franchise fee.

In addition, you will have to bear expenses arising in connection with your training, such as travel, daily transportation to and from the training facility, and any other living expenses.

We will pay for lodging during the classroom portion of the new franchisee orientation training program.

See Item 11 under "Training" for more details.

Question 23

How does the initial training fee for Big O Tires in Item 7 relate to the pre-opening assistance provided in Item 11, considering the restrictions on product sources in Item 8?

Accepted Answer

Note 2: Initial Training Fees, Travel and Lodging Expenses. We may charge you training fees, except that the initial Online Training, Facilitated Training, and on-location training program for one person are included in the initial franchise fee. In addition, you will have to bear expenses arising in connection with your training, such as travel, daily transportation to and from the training facility, and any other living expenses. We will pay for lodging during the classroom portion of the new franchisee orientation training program. See Item 11 under "Training" for more details.
- Note 3: Real Estate Leases. If you do not own adequate space, you will need to lease or purchase the land and building for your Store. Typically locations for a Store are prime retail sites. You will generally need a facility of 5,000 to 8,000 square feet to operate your store with a prototypical store sized at 6,240 square feet. If leased, the base monthly rent is estimated to range from \$10,000 to \$40,000 per month, depending on geographic location, size of the premises and other economic factors. Typically, these leases are triple net leases, under which the tenant must pay all taxes, insurance and maintenance expenses over and above the base rent amount. The estimate provided assumes that you will rent the facility and that you must provide a security deposit of one month's base rent to the landlord. In a buildto-suit lease, the landlord may include some or all of the improvements, fixtures, and signs in the cost to build the building and factor these costs into your lease payments. You may elect to purchase the land and building rather than renting. If you purchase the land and build your store, your estimated combined costs for the land and building construction may range from \$1,200,000 to \$4,500,000 depending upon market conditions. If you purchase an existing building and remodel it, your costs may be less. You will not incur the premises rent costs listed above, but will have to factor in additional costs for financing, acquisition and construction of the building.

Question 24

How does the initial training fee for Big O Tires in Item 7 relate to the pre-opening assistance provided in Item 11, considering the restrictions on product sources in Item 8 and the financing options in Item 10?

Accepted Answer

- Note 2: Initial Training Fees, Travel and Lodging Expenses.

We may charge you training fees, except that the initial Online Training, Facilitated Training, and on-location training program for one person are included in the initial franchise fee.

In addition, you will have to bear expenses arising in connection with your training, such as travel, daily transportation to and from the training facility, and any other living expenses.

We will pay for lodging during the classroom portion of the new franchisee orientation training program.

See Item 11 under "Training" for more details.

Question 25

What is the key difference between the Standard promissory note and the Incentive Note used by Big O Tires?

Accepted Answer

The promissory notes used to evidence the franchisee's obligations under the various incentive programs for inventory, ongoing trade account, or equipment purchases (the "Incentive Note") are substantially the same as the Standard promissory note in this Exhibit G (the "Standard Note") except that the Standard Note does not specify the purpose of advancements, but the Incentive Note specifies that the principal advanced under the Note is for inventory, ongoing trade account, or equipment purchases from Big O.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 26

What is the range of the initial franchise fee for Big O Tires (Item 5) and how does this compare to the total estimated initial investment (Item 7)?

Accepted Answer

| Expenditures | Low | High | When Due | Method of Payment | Refundability | To Whom Payment Made |
|---|---|---|---|---|---|---|
| Initial Franchise Fee/Minimum | $10,000 | $17,500 | See Item 5 | See Item 5 | See Item 5 | Big O |
| Deposit (See Note 1) |  |  |  |  |  |  |
| Initial Training- | $1,000 | $9,000 | As Incurred | As Agreed | Nonrefundable | Third Parties |
| Fees, Travel & Lodging Expenses |  |  |  |  |  |  |
| (See Note 2) |  |  |  |  |  |  |

Question 27

What is the refundability policy for the initial franchise fee for Big O Tires as described in Item 5, and how does it compare to the refundability of other fees listed in Item 7?

Accepted Answer

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Question 28

What is the relationship between the initial franchise fee for Big O Tires in Item 5 and the estimated initial investment range in Item 7?

Accepted Answer

| Expenditures | Low | High | When Due | Method of Payment | Refundability | To Whom Payment Made |
|---|---|---|---|---|---|---|
| Initial Franchise Fee/Minimum | $10,000 | $17,500 | See Item 5 | See Item 5 | See Item 5 | Big O |
| Deposit (See Note 1) |  |  |  |  |  |  |
| Initial Training- | $1,000 | $9,000 | As Incurred | As Agreed | Nonrefundable | Third Parties |
| Fees, Travel & Lodging Expenses |  |  |  |  |  |  |
| (See Note 2) |  |  |  |  |  |  |
| Real Estate Leases (Three Months’ Rent Plus Security Deposit) (See Note 3) | $40,000 | $160,000 | As Specified in Lease | As Agreed | Some or all of the security deposit may be refundable at the end of the lease term | Big O or Third Parties |
| Equipment, fixtures and other fixed assets (See Note 4) | $250,000 | $395,000 | See Note 4 | As Agreed | Nonrefundable | Big O, its Affiliates, and Third Parties |
| Construction, Remodeling, Leasehold | $25,000 | $750,000 | As Incurred | As Agreed | Nonrefundable | Big O, its |
| Improvements and Decorating Costs |  |  |  |  |  | Affiliates, and |
| (See Note 5) |  |  |  |  |  | Third Parties |
| Signs | $15,000 | $75,000 | As Incurred | As Agreed | Nonrefundable | Big O, its Affiliates, or Third Parties |
| Grand Opening Advertising | $10,000 | $50,000 | As Incurred | As Agreed | Nonrefundable | Third Parties |

Question 29

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the financing options available in Item 10?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025. Further, we may offer any of the above incentives or any combination of incentives, and modify or waive some or all of the qualification requirements for these incentives, in situations involving the transfer of a Big O Store franchise, the reopening of a closed Big O Store, or the opening of additional Big O Stores on terms presented to existing franchisees at the annual Big O National Convention in our sole discretion. In transfer situations, we may also offer a credit against a franchisee's trade account for improvements made to the transferred Big O Store's facility and equipment, in our sole discretion.

Equipment and Signage. The equipment, tools, signage, leasehold improvements, and decorations needed to operate a Big O Store that must be purchased from us and our affiliated companies including TBC are estimated to cost from \$290,000 up to \$1,220,000 (excluding applicable sales and use tax, if any). You will pay these amounts to us or our affiliates pursuant to an invoice we issue following each order. For purchases of these items from third parties, payment will be made directly to the third party or vendor according to its payment terms. Generally, this expenditure is not refundable and we do not finance it, but we have in certain cases provided funding for equipment as described in Item 10. We may also assist you in locating financing opportunities from third parties for this expenditure.

Inventory.

Question 30

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the financing options available in Item 10, considering the territory granted in Item 12?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025. Further, we may offer any of the above incentives or any combination of incentives, and modify or waive some or all of the qualification requirements for these incentives, in situations involving the transfer of a Big O Store franchise, the reopening of a closed Big O Store, or the opening of additional Big O Stores on terms presented to existing franchisees at the annual Big O National Convention in our sole discretion. In transfer situations, we may also offer a credit against a franchisee's trade account for improvements made to the transferred Big O Store's facility and equipment, in our sole discretion.

Equipment and Signage. The equipment, tools, signage, leasehold improvements, and decorations needed to operate a Big O Store that must be purchased from us and our affiliated companies including TBC are estimated to cost from \$290,000 up to \$1,220,000 (excluding applicable sales and use tax, if any). You will pay these amounts to us or our affiliates pursuant to an invoice we issue following each order. For purchases of these items from third parties, payment will be made directly to the third party or vendor according to its payment terms. Generally, this expenditure is not refundable and we do not finance it, but we have in certain cases provided funding for equipment as described in Item 10. We may also assist you in locating financing opportunities from third parties for this expenditure.

Inventory. The cost of the initial product inventory that may be purchased from us (consisting of tires and other products) is estimated to be between \$75,000 and \$187,500 (excluding applicable sales and use tax, if any), unless you are acquiring an existing Big O Store by a transfer and paying the transferor for these items. You will pay these amounts to us pursuant to an invoice we issue following each order. For items purchased from third party vendors, payment will be due according to the vendors' credit terms. Generally, this expenditure is not refundable and we do not finance it, but we have in certain cases provided funding for equipment as described in Item 10.

![](_page_19_Picture_0.jpeg)

Rental Payments. Typically, you will enter into a third party lease for the property of the Big O Store premises and negotiate your own terms, or you may acquire the land and construct the building and improvements yourself. Alternatively, when we own the premises or lease it from a third party, we will lease or sublease the Store premises to you. When you lease or sublease the property from us, the first month's rent and taxes must be paid to us when your Big O Store opens. The rent and taxes typically range from \$10,000 to \$40,000 per month.

Question 31

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the financing options available in Item 10, considering the territory granted in Item 12 and the restrictions on product sources in Item 8?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, yo

Question 32

What is the relationship between the initial franchise fee for Big O Tires in Item 5 and the potential for real estate sub-lease financing in Item 10?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

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Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025. Further, we may offer any of the above incentives or any combination of incentives, and modify or waive some or all of the qualification requirements for these incentives, in situations involving the transfer of a Big O Store franchise, the reopening of a closed Big O Store, or the opening of additional Big O Stores on terms presented to existing franchisees at the annual Big O National Convention in our sole discretion. In transfer situations, we may also offer a credit against a franchisee's trade account for improvements made to the transferred Big O Store's facility and equipment, in our sole discretion.

Equipment and Signage. The equipment, tools, signage, leasehold improvements, and decorations needed to operate a Big O Store that must be purchased from us and our affiliated companies including TBC are estimated to cost from \$290,000 up to \$1,220,000 (excluding applicable sales and use tax, if any). You will pay these amounts to us or our affiliates pursuant to an invoice we issue following each order. For purchases of these items from third parties, payment will be made directly to the third party or vendor according to its payment terms. Generally, this expenditure is not refundable and we do not finance it, but we have in certain cases provided funding for equipment as described in Item 10. We may also assist you in locating financing opportunities from third parties for this expenditure.

Inventory.

Question 33

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the pre-opening assistance provided by the franchisor (Item 11)?

Accepted Answer

[Item 5: INITIAL FEES]

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard $17,500 initial franchise fee. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

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Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to $15,000 depending upon the services the franchise broker is providing.

[Item 5: INITIAL FEES]

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of $17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to $100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING]

Except as listed below, Big O is not required to provide you with any assistance.

### Pre-Opening Obligations.

Before the opening of your Big O Store, under the Franchise Agreement, we (or our designee) must provide the following assistance and services to you to the extent and as determined by us periodically:

- 1.

If you choose to purchase the land and building, and you request that we develop the site, we may, in our discretion, hire a developer and require that he use reasonable efforts to complete the work of the building and installation to a point of readiness for your occupancy.

This represents our current policy, which we may change in our discretion.

However, the Franchise Agreement does contemplate that Big O will provide certain assistance in site development (as described below) and that Big O, in its discretion, may provide other assistance. (Franchise Agreement Section 7.01).

- 2.

To assist you in selecting a site for your Store, we will provide you criteria for a satisfactory site conduct an on-site inspection and determine whether a proposed site fulfills the requisite criteria before formal approval of a site selected by you. (See "Additional Site Selection Information" in this Item 11 below) (Franchise agreement Section 7.01(a)).

- 3.

We will provide you a prototype floor plan, elevation and equipment layout for your Store.

We may charge you our cost (as reasonably determined by us) for these documents.

You must purchase the equipment, signs, and fixtures as detailed in Item 7. (Franchise Agreement Section 7.01(b)).

- 4.

We will provide training for one person in the operation of your Big O Store online ("Online Training") and at one or more locations designated by us ("Facilitated Training"), and we will provide field training and certification for that one person at a Big O Store.

The Online Training may be conducted at your home or any other location you choose.

The number of weeks of this initial training will be the number specified by us in our discretion; currently, we specify approximately one or two days of Online Training, one and a half weeks of Facilitated Training, three and a half weeks of required field training and two weeks of optional field training in a Store.

Also, in certain cases (typically involving a Store with high real estate costs or high past sales) the franchisee must take part in additional training. (See "Training Programs" in this Item 11, below) (Franchise Agreement Section 7.01(c)).

- 5.

We will provide you with online access to our Manual (which is further described in Item 8) or other proprietary information (Franchise Agreement Section 7.01(d)).

- 6.

We will assist you in selecting your initial inventory (Franchise Agreement Section 7.01(e)).

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7. We will assist you in the lay-out, merchandising and display of your Store (Franchise Agreement Section 7.01(f)).

### Schedule for Opening.

We estimate that the typical length of time between the signing of the Franchise Agreement and the opening of your Big O Store is 3 to 24 months. The Franchise Agreement provides that, unless otherwise agreed in writing, you have 12 months after signing the Franchise Agreement to select and obtain our approval of a site for your Store and 18 months after the signing of the Franchise Agreement to open and begin operating your Store. Some factors which may affect this timing are your ability to locate an acceptable site, the time to acquire the site through lease or purchase, the time to build your Store facility, your ability to secure any necessary financing, your ability to comply with local zoning and other ordinances and the timing of the delivery and installation of equipment and signs.

Question 34

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the pre-opening assistance provided by the franchisor (Item 11), considering the franchisee's obligations in Item 9?

Accepted Answer

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of \$17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to \$100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard \$17,500 initial franchise fee. We will match 50% of each dollar, up to \$20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to \$15,000 depending upon the services the franchise broker is providing.

Additional Incentive Information. A maximum of one incentive program listed above is generally available for the acquisition of any particular franchise, regardless of whether the qualifications for multiple incentives are met. All financing incentives are subject to our and TBC's credit approval requirements.

Alternate Incentive Programs. Prior to June 30, 2025, we offered different incentives than those listed above. If a prospective franchisee signed a Franchise Deposit Receipt Agreement and paid a deposit by the dates specified in those previous incentive programs as described in the applicable Franchise Disclosure Document disclosed at the time or that we otherwise agree upon, the franchisee may, in our discretion, receive those prior period incentives instead of the incentives set forth above even if the Franchise Agreement is entered after June 30, 2025. Further, we may offer any of the above incentives or any combination of incentives, and modify or waive some or all of the qualification requirements for these incentives, in situations involving the transfer of a Big O Store franchise, the reopening of a closed Big O Store, or the opening of additional Big O Stores on terms presented to existing franchisees at the annual Big O National Convention in our sole discretion. In transfer situations, we may also offer a credit against a franchisee's trade account for improvements made to the transferred Big O Store's facility and equipment, in our sole discretion.

Equipment and Signage. The equipment, tools, signage, leasehold improvements, and decorations needed to operate a Big O Store that must be purchased from us and our affiliated companies including TBC are estimated to cost from \$290,000 up to \$1,220,000 (excluding applicable sales and use tax, if any). You will pay these amounts to us or our affiliates pursuant to an invoice we issue following each order. For purchases of these items from third parties, payment will be made directly to the third party or vendor according to its payment terms. Generally, this expenditure is not refundable and we do not finance it, but we have in certain cases provided funding for equipment as described in Item 10. We may also assist you in locating financing opportunities from third parties for this expenditure.

Inventory. The cost of the initial product inventory that may be purchased from us (consisting of tires and other products) is estimated to be between \$75,000 and \$187,500 (excluding applicable sales and use tax, if any), unless you are acquiring an existing Big O Store by a transfer and paying the transferor for these items. You will pay these amounts to us pursuant to an invoice we issue following each order. For items purchased from third party vendors, payment will be due according to the vendors' credit terms.

Question 35

What is the relationship between the initial franchise fee for Big O Tires (Item 5) and the pre-opening assistance provided by the franchisor (Item 11), considering the franchisee's obligations in Item 9 and the restrictions on product sources in Item 8?

Accepted Answer

[Item 5: INITIAL FEES]

New Franchisee Program. If you are a new franchisee who signs a Franchise Agreement by June 30, 2026, and opens a Store by June 30, 2027, you will pay the standard initial franchise fee of $17,500. We will reduce the standard royalty to 1% during the first 12 months of Store operation and 2% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. We will provide the following financing assistance to acquire, open, and operate a Big O Store. You may receive up to $100,000 in financing to acquire initial tire inventory from RDCs only. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business and in accordance with any other conditions and deadlines determined by us. We will further pay for one hotel room and one economy air fare to the first Big O convention that takes place after you become a franchisee. These incentives and special royalty arrangements are described with more detail in Items 6 and 10, and are not assignable to others without our consent. If you qualify for this "New Franchisee Program" incentive, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

---

[Item 5: INITIAL FEES]

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard $17,500 initial franchise fee. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to $15,000 depending upon the services the franchise broker is providing.

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[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING]

### ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING

Except as listed below, Big O is not required to provide you with any assistance.

### Pre-Opening Obligations.

Before the opening of your Big O Store, under the Franchise Agreement, we (or our designee) must provide the following assistance and services to you to the extent and as determined by us periodically:

- 1.

If you choose to purchase the land and building, and you request that we develop the site, we may, in our discretion, hire a developer and require that he use reasonable efforts to complete the work of the building and installation to a point of readiness for your occupancy.

This represents our current policy, which we may change in our discretion.

However, the Franchise Agreement does contemplate that Big O will provide certain assistance in site development (as described below) and that Big O, in its discretion, may provide other assistance. (Franchise Agreement Section 7.01).

- 2.

To assist you in selecting a site for your Store, we will provide you criteria for a satisfactory site conduct an on-site inspection and determine whether a proposed site fulfills the requisite criteria before formal approval of a site selected by you. (See "Additional Site Selection Information" in this Item 11 below) (Franchise agreement Section 7.01(a)).

- 3.

We will provide you a prototype floor plan, elevation and equipment layout for your Store.

We may charge you our cost (as reasonably determined by us) for these documents.

You must purchase the equipment, signs, and fixtures as detailed in Item 7. (Franchise Agreement Section 7.01(b)).

- 4.

We will provide training for one person in the operation of your Big O Store online ("Online Training") and at one or more locations designated by us ("Facilitated Training"), and we will provide field training and certification for that one person at a Big O Store.

The Online Training may be conducted at your home or any other location you choose.

---

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

equipment, supplies, and services used in or sold through your Big O Store in accordance with our standards and specifications only from us or other sources approved by us. When you sign the Franchise Agreement, we will grant you online access to the Manual. Included in the Manual is a list of our approved suppliers. We have the right to change the standards and specifications included in the Manual, including the list of approved suppliers. You must comply with all standards and changes which are deemed, by their terms, to be mandatory; provided that the changes are applied in a reasonable and nondiscriminatory manner among comparable Big O franchisees. The Franchise Agreement also provides that you must comply with Big O's national fleet account policies and must participate in Big O's national fleet account programs, which are described in Item 11 (see paragraph 7 under "Continuing Obligations"). Also, periodically, we may institute pricing or discount programs in which the availability of lower prices or of discounts may depend, in whole or in part, on your meeting certain requirements established by us.

Tires. We sell lines of private label tires to Big O Tire Stores. These private label tires may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in us, or unaffiliated manufacturers. We may look to other manufacturers to produce tire products in the future. We do not manufacture tires. Most products are delivered to franchisees from the RDC servicing their area at a minimum of twice weekly. We commit to supply you with the Big O branded tire lines but we do not guarantee to supply you with any specific numbers or sizes of tires or with any other specific tire brands. However, we do have a fill rate policy which is described in Item 6, Note 2.

We are the only approved supplier of Big O private brand tires and other private brand products which are manufactured exclusively for us or TBC. We may add or change private brands of tires and other products periodically. We are also an approved supplier of various major brand tires. You must purchase your tires bearing the Big O trademark and other brands from the RDC in your area or, with our approval, other RDCs. In addition, you may purchase other lines of tires through the RDC or from any other approved source.

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[Item 6: OTHER FEES]

- Note 4: The "Franchise Advisory Council" or "FAC" is a group of elected representatives of our franchisees who meet regularly with our management, provide input to our strategic planning and present viewpoints on issues involving the franchise relationship.

The FAC has approved an increase in the National Marketing Program fee by .65% from .25% to .9% based on certain marketing programs which may be changed or terminated in the future, as described in Item 11.

- Note 5: You must maintain an inventory of Big O brand tires, other approved brands of tires and other products in amounts and variety as we may reasonably require.

Your initial inventory will cost between $75,000 and $187,500.

Product prices may include freight, fuel charges, and other delivery costs included in a stated delivered price or as stated separately.

- Note 6: These fees reflect Big O's arrangement with Navex, which currently provides the computerized point of sale system that is referred to as the "BOT POS System" in this disclosure document, and those fee that will be paid to our next designated supplier for the BOT POS System, Tekmetric, when you convert to that system.

You must acquire the BOT POS System.

You must become a licensee of Navex or Tekmetric in order to acquire the BOT POS System.

All franchisees acquiring the BOT POS System must pay (i) the Navex software license fee (and, when the Tekmetric system is implemented, the Tekmetric implementation fee) to Big O, (ii) fees for installation, conversion, training and onsite support to Big O, (iii) monthly subscription fees for licensing, maintenance, support, and training to Big O, or as otherwise directed by Navex or Tekmetric and Big O, and (iv) if applicable, a transfer fee, upon the transfer of a Big O Store subject to a Navex EULA or Tekmetric EULA.

These fees may change periodically.

The monthly subscription fee also provides you with access to third party vendor data, such as the Epicor suite of automotive repair and service catalogues.

Navex and Tekmetric may also charge hourly rates and other charges for services (such as installation, training and consulting) not included in the contracted maintenance, support, and training services.

Question 36

What is the relationship between the initial franchise fee for Big O Tires in Item 5 and the territory granted to the franchisee in Item 12?

Accepted Answer

Additional Outlets. If you have been granted a Big O Store franchise, you may request and we will consider, if you wish for us to do so, granting you an option to apply to develop an additional Big O Store in an open market area for a period of time determined by us in our sole discretion from the date of a Market Reservation Agreement you sign with us if this option is granted. In order for you to obtain this option, you and Big O must agree to the area in which you may develop the additional Store (which may not conflict with the rights of any other validly existing Big O franchisee), you must sign a Market Reservation Agreement in the form of Exhibit Q to this disclosure document and you must pay Big O a fee. The fee will vary from one market area to the next, but currently ranges from \$2,500 to \$6,000. We will agree to protect the market area designated, not awarding a franchise for or operating our own Big O Store within that market area for 12 months. This fee is only for reserving the right to open one Store in the agreed market area, does not guaranty that your application for a Big O Tires franchise will be approved, does not apply to the initial franchise fee for the additional Big O Store if you are approved, and is not refundable under any circumstances.

The Franchise Agreement restricts your use of the Internet as follows: you may not set up, maintain or utilize social media, an Internet website or home page to sell products and services or cause or allow the Licensed Marks, or any of them, to be used or displayed, in whole or in part, as an Internet domain name, or on or in connection with social media, any Internet home page or website without our express written consent before you do so (which we may grant or withhold in our sole discretion), and then only in the manner and in accordance with the procedures, standards and specifications as Big O periodically establishes. Our current policy is not to approve any franchisee use of the Internet, but certain information about your Big O Store (such as address and hours of operation) may be included as part of the Big O national web page.

The continuation of your rights to your Trade Area during the term of the Franchise Agreement is not dependent upon you achieving any sales volume or market penetration, but you are required to meet the required exclusive product inventory mix requirements. Specifically, as of the date of this disclosure document, a majority of all your tire unit inventory at your Store must be Big O brand tires, Big O exclusive tires, or other brand tires periodically designated by us as exclusive to the Big O product screen. If you fail to meet these inventory mix requirements, you will be in default of the Franchise Agreement and we may terminate the Franchise Agreement after providing you 30 days' notice and an opportunity to cure your default in accordance with the Franchise Agreement.

Except as described above with respect to the performance requirements, the continuation of your rights described in this Item 12 during the term of the Franchise Agreement is not dependent on achieving any certain sales volume, market penetration or similar contingency or other circumstances.

### Other Concepts and Businesses

We and our affiliates retain the right to, among others: (1) use, and license others to use, the Licensed Marks and Big O System for other Big O Stores or company-owned Stores; (2) solicit, sell to and service local, regional or national accounts wherever located; (3) use the Licensed Marks and Big O System with other services or products, or in alternative channels of distribution, including the Internet,

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without regard to location;

Question 37

What is the relationship between the initial franchise fee for Big O Tires in Item 5 and the territory granted to the franchisee in Item 12, considering the initial investment costs in Item 7?

Accepted Answer

[Item 5: INITIAL FEES]

New Franchisee Conversion Incentive. If you are a new franchisee and are operating a retail store selling and servicing tires and related automotive products when you sign your Franchise Agreement that you will be converting to a Big O Store, you will be entitled to the New Franchisee Conversion Incentive. You will pay the standard $17,500 initial franchise fee. We will match 50% of each dollar, up to $20,000, the amount you spend on opening advertising in the form of a credit against your trade account for products purchased from us. You will be required to spend the applicable funds within 12 months after opening for business as a Big O Store and in accordance with any other conditions and deadlines determined by us. We will reduce the standard royalty to 0% during the first 12 months of Store operation and 1% during the 13th to 24th month of Store operation, with the full royalty fee commencing on the 25th month of Store operation and continuing through the remainder of the term. If you qualify for these "New Franchisee Conversion Program" incentives, you and we will execute the New Franchisee Incentive Rider attached to the Franchise Agreement as Schedule 7.

![](_page_18_Picture_0.jpeg)

Market Development Incentive. In the event we decide to target a market or region for development or expansion, we may use any combination of incentives to new or current franchisees in order to support the development of any market, in our discretion. Such incentives may include the waiver or reduction of initial fees, the waiver or reduction of royalties, providing matching funds for advertising and remodeling, or any incentive or combination of incentives offered under any other program.

Other Fee Waivers. We may waive all or part of any initial franchise fee in our discretion.

Except as stated above, all initial franchise fees are uniform as to all persons currently acquiring a franchise and are nonrefundable once paid unless we determine otherwise at our sole discretion. However, we have relationships with various franchise brokers to whom we agree to pay a success fee for referring to us and working with franchisee prospects or raw leads that we are not currently in discussions with and have not previously contacted. The success fee varies and can be up to $15,000 depending upon the services the franchise broker is providing.
[Item 12: TERRITORY]
---

Additional Outlets. If you have been granted a Big O Store franchise, you may request and we will consider, if you wish for us to do so, granting you an option to apply to develop an additional Big O Store in an open market area for a period of time determined by us in our sole discretion from the date of a Market Reservation Agreement you sign with us if this option is granted. In order for you to obtain this option, you and Big O must agree to the area in which you may develop the additional Store (which may not conflict with the rights of any other validly existing Big O franchisee), you must sign a Market Reservation Agreement in the form of Exhibit Q to this disclosure document and you must pay Big O a fee. The fee will vary from one market area to the next, but currently ranges from $2,500 to $6,000. We will agree to protect the market area designated, not awarding a franchise for or operating our own Big O Store within that market area for 12 months. This fee is only for reserving the right to open one Store in the agreed market area, does not guaranty that your application for a Big O Tires franchise will be approved, does not apply to the initial franchise fee for the additional Big O Store if you are approved, and is not refundable under any circumstances.

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

![](_page_36_Picture_0.jpeg)

### Explanatory Notes

General Note: We are relying on our years of experience in the retail tire store and automotive repair and service business to compile these estimates. The availability and terms of financing, will vary considerably depending on the methods and amount of financing, your creditworthiness, collateral you may have and lending policies of financial institutions. The equipment and other items are shown in full, although they may be financed or leased. You are encouraged to discuss the operations of a Big O Store with Big O franchisees. (See Exhibits K-1 and K-2 for lists of current and certain former Big O franchisees.) You should also review these figures carefully with a business advisor before making any decision to purchase a Big O Store franchise. None of the fees or payments to us listed in this Item are refundable, unless otherwise provided. Payments to third parties may or may not be refundable depending on your agreement with such third parties; however, usually such payments are nonrefundable.

- Note 1: Initial Franchise Fee.

The initial franchise fee may vary as described in Item 5.

Question 38

What is the relationship between the initial training fees for Big O Tires in Item 7 and the pre-opening assistance provided by the franchisor in Item 11?

Accepted Answer

- Note 2: Initial Training Fees, Travel and Lodging Expenses. We may charge you training fees, except that the initial Online Training, Facilitated Training, and on-location training program for one person are included in the initial franchise fee. In addition, you will have to bear expenses arising in connection with your training, such as travel, daily transportation to and from the training facility, and any other living expenses. We will pay for lodging during the classroom portion of the new franchisee orientation training program. See Item 11 under "Training" for more details.
- Note 3: Real Estate Leases. If you do not own adequate space, you will need to lease or purchase the land and building for your Store. Typically locations for a Store are prime retail sites. You will generally need a facility of 5,000 to 8,000 square feet to operate your store with a prototypical store sized at 6,240 square feet. If leased, the base monthly rent is estimated to range from \$10,000 to \$40,000 per month, depending on geographic location, size of the premises and other economic factors. Typically, these leases are triple net leases, under which the tenant must pay all taxes, insurance and maintenance expenses over and above the base rent amount.

Question 39

For Big O Tires, in which states did the number of Business Format Franchise outlets remain constant across FYE March 31, 2023, FYE March 31, 2024 and FYE March 31, 2025?

Accepted Answer

| State | Year | Business Format Franchise Outlets at Start of Year | Business Format Franchise Outlets at End of Year |
|---|---|---|---|
| Arizona | FYE March 31, 2023 | 56 | 58 |
|  | FYE March 31, 2024 | 58 | 59 |
|  | FYE March 31, 2025 | 59 | 60 |
| Arkansas | FYE March 31, 2023 | 5 | 5 |
|  | FYE March 31, 2024 | 5 | 5 |
|  | FYE March 31, 2025 | 5 | 5 |
| California | FYE March 31, 2023 | 88 | 89 |
|  | FYE March 31, 2024 | 89 | 87 |
|  | FYE March 31, 2025 | 87 | 87 |
| Colorado | FYE March 31, 2023 | 65 | 66 |
|  | FYE March 31, 2024 | 66 | 67 |
|  | FYE March 31, 2025 | 67 | 67 |
| Idaho | FYE March 31, 2023 | 6 | 7 |
|  | FYE March 31, 2024 | 7 | 7 |
|  | FYE March 31, 2025 | 7 | 6 |
| Indiana | FYE March 31, 2023 | 19 | 22 |
|  | FYE March 31, 2024 | 22 | 21 |
|  | FYE March 31, 2025 | 21 | 19 |
| Iowa | FYE March 31, 2023 | 3 | 4 |
|  | FYE March 31, 2024 | 4 | 5 |
|  | FYE March 31, 2025 | 5 | 5 |
![](_page_96_Picture_0.jpeg)

| State | Year | Business Format Fran

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–101)

Question 40

During the 10-year period before the Big O Tires disclosure document's issuance date, has Mike Brown been convicted of or pleaded nolo contendere to a felony charge?

Accepted Answer

| 1. | List  | who will solicit, offer or sell franchises for the Franchisor in this state:                                                                                                                                                                                                                                                                                                                                            |
|----|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | A. | Name: |
|  |  | Mike Brown |
|  | B. | Business |
|  |  | address |
|  |  | and |
|  |  | telephone |
|  |  | number: |
|  |  | 4260 Design Center Drive, Palm Beach |
|  |  | Gardens, FL 33410 (561) 383-3000 |
|  | C. | Present employer: |
|  |  | Big O Tires, LLC |
|  | D. | Present |
|  |  | title: |
|  |  | Franchise Business Consultant |
|  | E. | Employment during the past five years. For each employment, state the name of the |
|  |  | employer, |
|  |  | position held, and beginning and |
|  |  | ending dates: |
|    |       | Big O Tires, LLC: Franchise Business Consultant 6/30/2017-Present                                                                                                                                                                                                                                                                                                                                                                                  |
| 2. | State | whether |
|  |  | the |
|  |  | person identified |
|  |  | in |
|  |  | 1 |
|  |  | above: |
|  | A. | Has an administrative, criminal or material civil action pending against that person |
|  |  | alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair |
|  |  | or |
|  |  | deceptive |
|  |  | practices, or |
|  |  | any comparable allegations? |
|  |  | YES |
|  |  | NO |
|  |  | If |
|  |  | you |
|  |  | answered |
|  |  | "yes", |
|  |  | please |
|  |  | provide: |
|  |  | Names |
|  |  | of |
|  |  | the parties: |
|  |  | 1. |
|  |  | Forum, |
|  |  | nature |
|  |  | and |
|  |  | current |
|  |  | status |
|  |  | of |
|  |  | the |
|  |  | pending |
|  |  | action: |
|  |  | 2. |
|  |  | 3. |
|  |  | Case |
|  |  | or |
|  |  | proceeding |
|  |  | identification |
|  |  | number: |
|  | B. | Had |
|  |  | during |
|  |  | the |
|  |  | 10-year |
|  |  | period |
|  |  | immediately |
|  |  | before |
|  |  | the |
|  |  | disclosure |
|  |  | document's |
|  |  | issuance date been convicted of or pleaded nolo contendere to a felony charge; or |
|  |  | been |
|  |  | held |
|  |  | liable |
|  |  | in |
|  |  | a |
|  |  | civil |
|  |  | action |
|  |  | involving |
|  |  | an |
|  |  | alleged |
|  |  | violation |
|  |  | of |
|  |  | a |
|  |  | franchise, |
|  |  | antitrust or |
|  |  | securities law, or allegations of fraud, unfair or deceptive practices, or |
|  |  | comparable |
|  |  | allegations? |
|  |  | YES |
|  |  | NO |
|  |  | If |
|  |  | you |
|  |  | answered |
|  |  | "yes", |
|  |  | please |
|  |  | provide: |
|  |  | Names |
|  |  | of |
|  |  | the parties: |
|  |  | 1. |
|  |  | The |
|  |  | forum: |
|  |  | 2. |
|  |  | 3. |
|  |  | Case |
|  |  | or |
|  |  | proceeding |
|  |  | identification |
|  |  | number: |

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 41

During the 10-year period before the Big O Tires disclosure document's issuance date, has Mike Brown been held liable in a civil action involving an alleged violation of a franchise, antitrust, or securities law, or allegations of fraud, unfair or deceptive practices?

Accepted Answer

1. List who will solicit, offer or sell franchises for the Franchisor in this state: A. Name: Gary Skidmore B. Business address and telephone number: 4260 Design Center Drive, Palm Beach Gardens, FL 33410 (561) 383-3000 C. Present employer: Big O Tires, LLC D. Present title: Senior Vice President & Chief Operating Officer E. Employment during the past five years. For each employment, state the name of the employer, position held, and beginning and ending dates: Big O Tires, LLC: Senior Vice President & Chief Operating Officer 4/2/2024-Present Big O Tires, LLC: Senior Vice President & General Manager 6/22/2023-4/1/2024 Big O Tires, LLC: Divisional Vice President 10/1/2020-6/21/2023 Big O Tires, LLC: Divisional Sales Operations Manager 7/1/2020-9/30/2020 Big O Tires, LLC: Franchise Business Consultant 2/1/2015-6/30/2020 2. State whether the person identified in 1 above: A. Has an administrative, criminal or material civil action pending against that person alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair or deceptive practices, or any comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: Forum, nature and current status of the pending action: 2. 3. Case or proceeding identification number: B. Had during the 10-year period immediately before the disclosure document's issuance date been convicted of or pleaded nolo contendere to a felony charge; or been held liable in a civil action involving an alleged violation of a franchise, antitrust or securities law, or allegations of fraud, unfair or deceptive practices, or comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: 2. The forum:

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 42

During the 10-year period immediately before the Big O Tires disclosure document's issuance date, has Jay Thomas been convicted of or pleaded nolo contendere to a felony charge?

Accepted Answer

ties, antitrust, trade regulation or trade practice law. YES NO If you answered "yes", please provide: 1. Name of the person: 2. Public agency or court: 3. Case or proceeding identification number:
![](_page_488_Picture_0.jpeg)

| 1. | List  | who will solicit, offer or sell franchises for the Franchisor in this state:                                                                                                                                                                                                                                                                                                                                         |
|----|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | A. | Name: |
|  |  | Jason Bastian |
|  | B. | Business |
|  |  | address |
|  |  | and |
|  |  | telephone |
|  |  | number: |
|  |  | 4260 Design Center Drive, Palm Beach |
|  |  | Gardens, FL 33410 (561) 383-3000 |
|  | C. | Present employer: |
|  |  | Big O Tires, LLC |
|  | D. | Present |
|  |  | title: |
|  |  | Divisional Vice President |
|  | E. | Employment during the past five years. For each employment, state the name of the |
|  |  | employer, |
|  |  | position held, and beginning and |
|  |  | ending dates: |
|  |  | Big O Tires, LLC: Divisional Vice President 12/1/2024-Present |
|  |  | National Tire Wholesale: Vice President of Car Dealer |
|  |  | Channel |
|  |  | 4/1/2021-12/1/2024 |
|  |  | National Tire Wholesale: Vice President of Customer Business Development 7/1/2019- |
|  |  | 4/1/2021 |
|  |  | National Tire Wholesale: |
|  |  | Vice President of Operations 4/1/2018-7/01/2019 |
| 2. | State | whether |
|  |  | the |
|  |  | person identified |
|  |  | in |
|  |  | 1 |
|  |  | above: |
|  | A. | Has an administrative, criminal or material civil action pending against that person |
|  |  | alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair |
|  |  | or |
|  |  | deceptive |
|  |  | practices, or |
|  |  | any comparable allegations? |
|  |  | YES |
|  |  | NO |
|  |  | If |
|  |  | you |
|  |  | answered |
|  |  | "yes", |
|  |  | please |
|  |  | provide: |
|  |  | 1. |
|  |  | Names |
|  |  | of |
|  |  | the parties: |
|  |  | Forum, |
|  |  | nature |
|  |  | and |
|  |  | current |
|  |  | status |
|  |  | of |
|  |  | the |
|  |  | pending |
|  |  | action: |
|  |  | 2. |
|  |  | 3. |
|  |  | Case |
|  |  | or |
|  |  | proceeding |
|  |  | identification |
|  |  | number: |
|  | B. | Had |
|  |  | during |
|  |  | the |
|  |  | 10-year |
|  |  | period |
|  |  | immediately |
|  |  | before |
|  |  | the |
|  |  | disclosure |
|  |  | document's |
|  |  | issuance date been convicted of or pleaded nolo contendere to a felony charge; or |
|  |  | been |
|  |  | held |
|  |  | liable |
|  |  | in |
|  |  | a |
|  |  | civil |
|  |  | action |
|  |  | involving |
|  |  | an |
|  |  | alleged |
|  |  | violation |
|  |  | of |
|  |  | a |
|  |  | franchise, |
|  |  | antitrust or securities law, or allegations of fraud, unfair or deceptive practices, or |
|  |  | comparable |
|  |  | allegations? |
|  |  | YES |
|  |  | NO |
|  |  | If |
|  |  | you |
|  |  | answered |
|  |  | "yes", |
|  |  | please |
|  |  | provide: |
|  |  | 1. |
|  |  | Names |
|  |  | of |
|  |  | the parties: |
|  |  | 2.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 43

During the 10-year period immediately before the disclosure document's issuance date, has Jim Comello, the Big O Tires Franchise Business Consultant, been convicted of or pleaded nolo contendere to a felony charge?

Accepted Answer

| 1. | List  | who will solicit, offer or sell franchises for the Franchisor in this state:                                                                                                                                                                                                                                                                                                                                            |
|----|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | A. | Name: |
|  |  | Jim Comello |
|  | B. | Business |
|  |  | address |
|  |  | and |
|  |  | telephone |
|  |  | number: |
|  |  | 4260 Design Center Drive, Palm Beach |
|  |  | Gardens, FL 33410 (561) 383-3000 |
|  | C. | Present employer: |
|  |  | Big O Tires, LLC |
|  | D. | Present |
|  |  | title: |
|  |  | Franchise Business Consultant |
|  | E. | Employment during the past five years. For each employment, state the name of the |
|  |  | employer, |
|  |  | position held, and beginning and |
|  |  | ending dates: |
|    |       | Big O Tires, LLC: Franchise Business Consultant 9/21/2017-Present                                                                                                                                                                                                                                                                                                                                                                                  |
| 2. | State | whether |
|  |  | the |
|  |  | person identified |
|  |  | in |
|  |  | 1 |
|  |  | above: |
|  | A. | Has an administrative, criminal or material civil action pending against that person |
|  |  | alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair |
|  |  | or |
|  |  | deceptive |
|  |  | practices, or |
|  |  | any comparable allegations? |
|  |  | YES |
|  |  | NO |
|  |  | If |
|  |  | you |
|  |  | answered |
|  |  | "yes", |
|  |  | please |
|  |  | provide: |
|  |  | 1. |
|  |  | Names |
|  |  | of |
|  |  | the parties: |
|  |  | 2. |
|  |  | Forum, |
|  |  | nature |
|  |  | and |
|  |  | current |
|  |  | status |
|  |  | of |
|  |  | the |
|  |  | pending |
|  |  | action: |
|  |  | Case |
|  |  | or |
|  |  | proceeding |
|  |  | identification |

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 44

During the 10-year period immediately before the disclosure document's issuance date, has Jim Comello, the Big O Tires Franchise Business Consultant, been held liable in a civil action involving an alleged violation of a franchise, antitrust or securities law, or allegations of fraud, unfair or deceptive practices?

Accepted Answer

1. List who will solicit, offer or sell franchises for the Franchisor in this state: A. Name: Gary Skidmore B. Business address and telephone number: 4260 Design Center Drive, Palm Beach Gardens, FL 33410 (561) 383-3000 C. Present employer: Big O Tires, LLC D. Present title: Senior Vice President & Chief Operating Officer E. Employment during the past five years. For each employment, state the name of the employer, position held, and beginning and ending dates: Big O Tires, LLC: Senior Vice President & Chief Operating Officer 4/2/2024-Present Big O Tires, LLC: Senior Vice President & General Manager 6/22/2023-4/1/2024 Big O Tires, LLC: Divisional Vice President 10/1/2020-6/21/2023 Big O Tires, LLC: Divisional Sales Operations Manager 7/1/2020-9/30/2020 Big O Tires, LLC: Franchise Business Consultant 2/1/2015-6/30/2020 2. State whether the person identified in 1 above: A. Has an administrative, criminal or material civil action pending against that person alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair or deceptive practices, or any comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: Forum, nature and current status of the pending action: 2. 3. Case or proceeding identification number: B. Had during the 10-year period immediately before the disclosure document's issuance date been convicted of or pleaded nolo contendere to a felony charge; or been held liable in a civil action involving an alleged violation of a franchise, antitrust or securities law, or allegations of fraud, unfair or deceptive practices, or comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: 2. The forum:

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 45

During the 10-year period immediately before the disclosure document's issuance date, has Matthew Ottum been convicted of or pleaded nolo contendere to a felony charge, or been held liable in a civil action involving an alleged violation of a franchise, antitrust, or securities law, or allegations of fraud, unfair or deceptive practices related to Big O Tires?

Accepted Answer

1. List who will solicit, offer or sell franchises for the Franchisor in this state: A. Name: Gary Skidmore B. Business address and telephone number: 4260 Design Center Drive, Palm Beach Gardens, FL 33410 (561) 383-3000 C. Present employer: Big O Tires, LLC D. Present title: Senior Vice President & Chief Operating Officer E. Employment during the past five years. For each employment, state the name of the employer, position held, and beginning and ending dates: Big O Tires, LLC: Senior Vice President & Chief Operating Officer 4/2/2024-Present Big O Tires, LLC: Senior Vice President & General Manager 6/22/2023-4/1/2024 Big O Tires, LLC: Divisional Vice President 10/1/2020-6/21/2023 Big O Tires, LLC: Divisional Sales Operations Manager 7/1/2020-9/30/2020 Big O Tires, LLC: Franchise Business Consultant 2/1/2015-6/30/2020 2. State whether the person identified in 1 above: A. Has an administrative, criminal or material civil action pending against that person alleging a violation of franchise, antitrust or securities law, or alleging fraud, unfair or deceptive practices, or any comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: Forum, nature and current status of the pending action: 2. 3. Case or proceeding identification number: B. Had during the 10-year period immediately before the disclosure document's issuance date been convicted of or pleaded nolo contendere to a felony charge; or been held liable in a civil action involving an alleged violation of a franchise, antitrust or securities law, or allegations of fraud, unfair or deceptive practices, or comparable allegations? YES NO If you answered "yes", please provide: 1. Names of the parties: 2. The forum:

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 46

During the 10-year period immediately before the issuance date of the Big O Tires disclosure document, has Jason Bastian been convicted of a felony or held liable in a civil action involving franchise, antitrust, or securities law violations, or allegations of fraud or deceptive practices?

Accepted Answer

| 1. | List  | who will solicit, offer or sell franchises for the Franchisor in this state:                                                                                                                                                                                                                                                                                                                                         |
|----|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | A. | Name: |
|  |  | Jason Bastian |
|  | B. | Business |
|  |  | address |
|  |  | and |
|  |  | telephone |
|  |  | number: |
|  |  | 4260 Design Center Drive, Palm Beach |
|  |  | Gardens, FL 33410 (561) 383-3000 |
|  | C. | Present employer: |
|  |  | Big O Tires, LLC |
|  | D. | Present |
|  |  | title: |
|  |  | Divisional Vice President |
|  | E. | Employment during the past five years. For each employment, state the name of the |
|  |  | employer, |
|  |  | position held, and beginning and |
|  |  | ending dates: |
|  |  | Big O Tires, LLC: Divisional Vice President 12/1/2024-Present |
|  |  | National Tire Wholesale: Vice President of Car Dealer |
|  |  | Channel |
|  |  | 4/1/2021-12/1/2024 |
|  |  | National Tire Wholesale: Vice President of Customer Business Development 7/1/

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 47

During the 10-year period immediately before the issuance date of the Big O Tires disclosure document, has Jeff Humphrey been convicted of or pleaded nolo contendere to a felony charge, or been held liable in a civil action involving an alleged violation of a franchise, antitrust or securities law, or allegations of fraud, unfair or deceptive practices?

Accepted Answer

| 1. | List  | who will solicit, offer or sell franchises for the Franchisor in this state:                                                                                                                                                                                                                                                                                                                                         |
|----|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | A. | Name: |
|  |  | Jeff Humphrey |
|  | B. | Business |
|  |  | address |
|  |  | and |
|  |  | telephone |
|  |  | number: |
|  |  | 4260 Design Center Drive, Palm Beach |
|  |  | Gardens, FL 33410 (561) 383-3000 |
|  | C. | Present employer: |
|  |  | Big O Tires, LLC |
|  | D. | Present |
|  |  | title: |
|  |  | Franchise Development Manager |
|  | E. | Employment during the past five years. For each employment, state the name of the |
|  |  | employer, |
|  |  | position held, and beginning and |
|  |  | ending dates: |
|  |  | Big O Tires, LLC: Franchise Development Manager 3/10/2025-Present |
|  |  | United Franchis

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 48

According to the Big O Tires FDD, if the Software System is invoiced to a shipping address in a jurisdiction where the Licensor is not registered to collect and remit sales tax, who is responsible for making the use tax determination?

Accepted Answer

- c. The Fees set forth in Exhibit B are exclusive of any taxes. When applicable, Licensor will invoice the fees as agreed in Exhibit B, plus sales tax (including transaction privilege tax, value added tax, goods and services tax, or any similar tax collectible by law by Licensor). Licensor has registered to collect and remit sales tax in the state and local jurisdictions only where Licensor has determined that it is required to collect and remit sales tax. If the applicable Software System are invoiced with a shipping address in a jurisdiction where Licensor is not registered to collect and remit sales tax, then Licensee will make its own use tax determination. Licensor will not be responsible

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 49

According to the Big O Tires FDD, who invoices the Monthly Subscription Fees and new store one-time license fees while the contract between the Licensor and Big O Tires is valid?

Accepted Answer

- i. Monthly Subscription Fees in Schedule B (and any applicable new store one-time license fees in Schedule D) shall be invoiced to Licensee by Big O Tires pursuant to the contract between Licensor and Big O for so long as such contract is valid.
  - ii. Upon termination of the Licensor and Big O contract, such fees shall be invoiced by Licensor.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 50

According to the Big O Tires franchise agreement amendment, what happens in years subsequent to Year 1, Year 2, and Year 3 regarding royalty payments?

Accepted Answer

In any year subsequent to those described above as applicable, clause (d) of Section 8.02, the second sentence of Section 8.02, and the full royalty in accordance with Adjusted Gross Sales Royalty Rate will apply.

As used above, "Year 1" means the 12 month period beginning on the Commencement Date, "Year 2" is the 12 month period beginning on the first anniversary of the

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 51

According to the Illinois Rider, what law governs the interpretation of the Big O Tires Franchise Agreement and dispute resolution, considering the Illinois Franchise Disclosure Act of 1987?

Accepted Answer

The following information applies to prospective Franchisees to whom the Illinois Franchise Disclosure Act of 1987, ILCS, Chapter 815, Sections 705/1-705/44 applies.

- 1. The Franchise Agreement and all provisions of such agreement shall be governed by and interpreted in accordance with Colorado law, which law shall prevail in the event of any conflict of laws, provided that such agreements and provisions shall be subject to the provisions of Illinois law to the extent the same are applicable.
- 2. For any disputes not subject to mandatory arbitration as provided in the Franchise Agreement, any provision which designates jurisdiction or venue or requires the franchisee to agree to jurisdiction or venue in a forum outside of Illinois is void.
- 3. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 52

According to Item 23, if there is a currently effective injunction or restrictive order or decree resulting from a pending or concluded action brought by a public agency and relating to the Big O Tires franchise, or to a Federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law, what information must be provided?

Accepted Answer

| C. | Is subject to a currently effective injunction or restrictive order or decree resulting from a pending or concluded action brought by a public agency and relating to the franchise, or to a Federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law. |                                                       |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|
|  |  | YES |
|  |  | NO |
|    | If you                                                                                                                                                                                                                                                                                                        | answered "yes", please provide:              |
|  | 1. | Name |
|  |  | of |
|  |  | the person: |
|  | 2. | Public |
|  |  | agency |
|  |  | or |
|  |  | court: |
|  | 3. | Case |
|  |  | or |
|  |  | proceeding |
|  |  | identification |
|  |  | number: |

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 53

According to Item 23, if there is a currently effective injunction or restrictive order or decree resulting from a pending or concluded action brought by a public agency and relating to the Big O Tires franchise, or to a Federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law, is the answer 'yes' or 'no'?

Accepted Answer

C. Is subject to a currently effective injunction or restrictive order or decree resulting from a pending or concluded action brought by a public agency and relating to the franchise, or to a Federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law. YES NO If you answered "yes", please provide: 1. Name of the person: 2. Public agency or court: 3. Case or proceeding identification number:

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 54

According to the Big O Tires lease agreement, can the Landlord alter improvements on the Leased Premises, Rules and Regulations, or Sign Criteria to conform to conditions imposed by governmental entities, and what is the limitation on such alterations?

Accepted Answer

Except as otherwise provided herein, Landlord may at any time alter or require to be altered the improvements located on the Leased Premises, Rules and Regulations set forth on Exhibit "D", Sign Criteria set forth on Exhibit "C" or any other provision of this Lease or Exhibit or Addendum thereto so as to conform to such conditions as the same may be composed from time to time so long as such alterations do not materially effect the use of the Leased Premises as defined in Section 4 hereof.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 55

According to the lease agreement, can the landlord restrict advertising signs or business activities at a Big O Tires location if they believe it impairs the reputation of the Leased Premises?

Accepted Answer

- 15.

Signs and Business Activities.

No advertising signs, (except as is specifically permitted in Exhibit "C"), billboards, unsightly objects, or nuisances shall be erected, placed or permitted to remain on the Property, nor shall the Property be used in any way or for any purpose which may endanger the health or unreasonably disturb the lessee of any unit; nor shall any advertising be used which, in the Landlord's opinion tends to impair the reputation of the Leased Premises or its desirability.

Upon written notice from Landlord, Tenant shall refrain from or discontinue such advertising.

However, the foregoing covenants shall not apply to the business activities, signs and billboards of the Landlord, its agent or assign during the Period of Development.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 56

According to the Minnesota Rider, under what conditions will Big O Tires protect a franchisee's right to use licensed marks and/or indemnify them from losses arising from claims regarding the use of the name "Big O"?

Accepted Answer

With respect to Franchisees governed by the Minnesota Franchise Law, Big O will protect Franchisee's right to use the Licensed Marks and/or indemnify Franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the licensed use of the name "Big O", provided that such protection and indemnity are contingent on Franchisee using the Licensed Marks in accordance with this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 57

According to Big O Tires, under what conditions are the results of the audit final and binding on Big O and the Business Format Franchises?

Accepted Answer

The results of the audit shall not be final and binding on Big O and the Business Format Franchises except if certain conditions are met as defined by Big O in the Manual from time to time.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 58

Are the agreement riders in the Big O Tires FDD applicable to all franchisees, or only those covered by specific state franchise laws?

Accepted Answer

disclosure addendum would not be applicable to you.
- 2. Each of the following agreement riders is applicable only to franchisees that are covered by the franchise laws of the identified state.

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### ILLINOIS STATE DISCLOSURE ADDENDUM

The following information applies to prospective Franchisees to whom the Illinois Franchise Disclosure Act of 1987, ILCS, Chapter 815, Sections 705/1-705/44 applies.

- 1. The Franchise Agreement and all provisions of such agreement shall be governed by and interpreted in accordance with Colorado law, which law shall prevail in the event of any conflict of laws, provided that such agreements and provisions shall be subject to the provisions of Illinois law to the extent the same are applicable.
- 2. For any disputes not subject to mandatory arbitration as provided in the Franchise Agreement, any provision which designates jurisdiction or venue or requires the franchisee to agree to jurisdiction or venue in a forum outside of Illinois is void.
- 3. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

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### ILLINOIS RIDER TO THE BIG O TIRES, LLC FRANCHISE AGREEMENT BETWEEN BIG O TIRES, LLC

| AND  |
|---------|
| DATED   |

- 1. Section 29.06 is deleted and the following Section 29.06 is added:
- 29.06. Governing Law. The United States Federal Arbitration Act shall govern all questions about the enforceability of Sections 29.02 and 29.03 and the confirmation of any arbitration awards pursuant to such procedures, and no arbitration issues are to be resolved pursuant to any other statutes, regulations or common law. Otherwise, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other United States federal law, this Agreement shall be interpreted under the laws of the State of Colorado U.S.A. and any dispute between the parties shall be governed by and determined in accordance with the internal substantive laws, and not the laws of conflict, of the State of Colorado U.S.A., which laws shall prevail in the event of any conflict of law, provided that, this Agreement shall be subject to the provisions of the Illinois Franchise Disclosure Act of 1987, which requires that Illinois law govern such agreements, to the extent the same are applicable. Notwithstanding the foregoing, the parties agree that the Colorado Consumer Protection Act (Colo. Rev. Stat. Ann. Sections 6-1-101, et seq.) shall not apply to this Agreement or any disputes between the parties. The decision as to whether a claim is subject to mandatory arbitration shall be made by an arbitrator, not a court.
- 2. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

| BIG O TIRES, LLC |                         |  |
|------------------|-------------------------|--|
|                  | FRANCHISEE (Print Name) |  |
| By:              | By:                     |  |
| Title:           | Title:                  |  |

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### MINNESOTA STATE DISCLOSURE ADDENDUM

The following information applies to prospective Franchisees to whom the Minnesota Franchise Law, Minnesota Statute Chapter 80C applies:

- 1. The Franchise Disclosure Document is amended by adding the following Special Risks to Consider About This Franchise:
  - a. THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE MINNESOTA FRANCHISE ACT. REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF COMMERCE OF MINNESOTA OR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
  - b. THE MINNESOTA FRANCHISE ACT MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WHICH IS SUBJECT TO REGISTRATION WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST 7 DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST 7 DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION, BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THIS PUBLIC OFFERING STATEMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE FRANCHISE.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 59

Does Big O Tires always install printers as part of the software installation process?

Accepted Answer

Additional programming, training, implementation, installation, support, and/or travel fees will be agreed in advance and billed at Licensor's then current rates included as schedule D.

Data conversion available for named competitive systems.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 60

For assignors, assignees, and guarantors in Montana, does the agreement bar actions related to released claims against Big O Tires, even if those claims are unknown?

Accepted Answer

The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in Montana:

It is intended that this Agreement shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the BIG O Parties and each party expressly waives any and all rights under Section 28-1-1602 of the Montana Code Annotated, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN THE CREDITOR'S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY THE CREDITOR, MUST HAVE MATERIALLY AFFECTED THE CREDITOR'S SETTLEMENT WITH THE DEBTOR.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 61

For assignors, assignees, and guarantors in North Dakota, does the agreement bar actions related to released claims against Big O Tires, even if those claims are unforeseen?

Accepted Answer

The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in North Dakota:

It is intended that this Agreement shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the BIG O Parties and each party expressly waives any and all rights under Section 9-13-02 of the North Dakota Century Code, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN THE CREDITOR'S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY THE CREDITOR, MUST HAVE MATERIALLY AFFECTED THE CREDITOR'S SETTLEMENT WITH THE DEBTOR.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 62

For assignors, assignees, and guarantors in South Dakota, does the agreement bar actions related to released claims against Big O Tires, even if those claims are suspected?

Accepted Answer

The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in South Dakota:

It is intended that this Agreement shall be effective as a bar to each and every action and cause of action related to the released Claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the BIG O Parties and each party expressly waives any and all rights under Section 20-7-11 of the South Dakota Codified Laws, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

Question 63

Is the assistance provided by Big O Tires during the term of the Franchise Agreement subject to change?

Accepted Answer

During the term of the Franchise Agreement, we (or our designee) will provide the following assistance and services to you to the extent and as determined by us periodically:

We will not charge a fee for the following assistance:

- 1.

If available to us, we will provide you a source from which you may purchase Big O private brand tires.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING (FDD pages 55–73)

Question 64

In California, can a Big O Tires sublessor prohibit a sublessee from obtaining a Certified Access Specialist (CASp) inspection of the subleased premises?

Accepted Answer

CALIFORNIA ONLY: 5.2.5 Required Accessibility Disclosure. The Subleased Premises has not undergone an inspection by a Certified Access Specialist (CASp). The parties acknowledge and agree a CASp can inspect the Subleased Premises and determine whether the Subleased Premises complies with all of the applicable construction-related accessibility standards under California state law. Although state law does not require a CASp inspection of the Subleased Premises, Sublessor may not prohibit Sublessee from obtaining a CASp inspection of the Subleased Premises for the occupancy of the Sublessee, if requested by Sublessee. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Subleased Premises. Any necessary repairs or modifications to bring the Subleased Premises into compliance with construction-related accessibility standards, which are disclosed by the CASp inspection report, are presumed to be the responsibility of Sublessee unless otherwise agreed to by the parties in writing.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

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