According to Big O Tires, what does the term 'PROGRAM' refer to?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT "R"
ROAD HAZARD SERVICE CONTRACT
Big O Tires Road Hazard Service Contract Program Franchisee Sales Agreement
This ROAD HAZARD SERVICE CONTRACT FRANCHISEE SALES AGREEMENT ("AGREEMENT") is executed this day of, 20 (the "Effective Date"), by and between ABS Operations LLC dba. Automotive Business Solutions, located at 10170 Church Ranch Way, Suite 320, Westminster, CO 80021 ("COMPANY") and , a Big O Tires Franchisee, ("SELLER"), located at , to memorialize in writing practices that exist between COMPANY and SELLER in relation to the operation of SELLER under COMPANY's PROGRAM. The effective date of this AGREEMENT as agreed upon by all parties hereto shall be the date first mentioned above. NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, the parties hereto agree as follows:
Article 1: Definitions
- Section 1.1. The term "PROGRAM" means the Road Hazard Service Contract Program administered by COMPANY.
- Section 1.2. The terms "CONTRACT" or "CONTRACTS" refer to a road hazard service contract approved by COMPANY and properly sold or provided by SELLER. A copy of the approved CONTRACT(S) are attached hereto as Exhibit 1.
Section 1.3.
- (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)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the term "PROGRAM" refers to the Road Hazard Service Contract Program administered by ABS Operations LLC dba Automotive Business Solutions. This program provides road hazard service contracts to customers, offering them protection against tire damage caused by road hazards.
For a Big O Tires franchisee, understanding this program is crucial because it outlines the framework for offering and managing road hazard service contracts. The franchisee, as the seller, operates under the company's program guidelines when providing these contracts to customers. The contracts themselves, which must be approved by the company, are a key component of this program.
The program distinguishes between primary and secondary contract holders. Primary contract holders are those who purchase the contract directly from the franchisee, while secondary contract holders are customers of other Big O Tires franchisees who seek service from the franchisee under the program. This distinction is important for managing service obligations and potential claims under the road hazard program.
The Road Hazard Service Contract Program is an important aspect of the Big O Tires franchise, providing an additional service offering for customers and a potential revenue stream for franchisees. Franchisees must adhere to the program's rules and guidelines to ensure proper administration and customer satisfaction.