What does Big O Tires agree to do regarding compliance with laws and regulations applicable to the program?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.02 Compliance with Laws. Franchisee shall comply with all applicable federal, state, and local laws, rules and regulations, including, without limitation, environmental laws related to tire disposal. Big O has no obligation to advise Franchisee of any legislative or other legal developments that may affect its Franchised Business. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, rules and regulations, and determining those actions required for compliance. Franchisee shall obtain any and all permits, certificates, and licenses required for the full and proper conduct of the Franchised Business. Any information Big O provides to Franchisee regarding applicable laws, rules or regulations does not relieve Franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, rules and regulations.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, Big O Tires has no obligation to advise the franchisee of any legislative or other legal developments that may affect its franchised business. The franchisee is solely responsible for inquiring about and becoming familiar with all applicable federal, state, and local laws, rules, and regulations, and determining those actions required for compliance. Big O Tires states that any information it provides to the franchisee regarding applicable laws, rules, or regulations does not relieve the franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, rules, and regulations. The franchisee is responsible for obtaining any and all permits, certificates, and licenses required for the full and proper conduct of the franchised business.
This means that while Big O Tires may provide some information, the ultimate responsibility for understanding and adhering to all relevant laws and regulations falls squarely on the franchisee. This includes environmental laws related to tire disposal, labor and employment laws, and any other legal requirements specific to the operation of a Big O Tires franchise.
Prospective franchisees should be aware that they cannot rely solely on Big O Tires for legal guidance. It is essential to engage their own legal counsel to ensure full compliance with all applicable laws and regulations. This is a common practice in franchising, as franchisees are independent business owners and are expected to manage their own legal affairs. Failing to comply with these laws can result in penalties, fines, and legal liabilities, which the franchisee will be responsible for.