Am I required to sell Big O Tires at the prices recommended by the franchisor?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We will provide you recommended prices for Big O brand tires and other brands of tires exclusive to Big O; provided that you will not be required to sell at any particular price if such a requirement would be unlawful (Franchise Agreement Section 7.02(a)(iii)). Also, see paragraph 10.a of the following section.
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- We periodically will make available programs offered to Franchisees by parts vendors approved by us. Currently, these vendors are NAPA, O'Reilly's, Advance Auto (CARQUEST, WorldPAC and AWI), AutoZone, The Group (Federated, Pronto, Auto Plus), and AAPA (Auto Value, Bumper to Bumper, Alliance Parts Warehouse). These programs may include such features as national account pricing, rebates paid directly to Franchisees, and prompt payment discounts (among others features). The basic vendor programs may be enhanced for BFF Franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING (FDD pages 55–73)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, franchisees are not required to adhere to the franchisor's recommended prices for Big O brand tires and other brands of tires exclusive to Big O, provided that such a requirement would be unlawful. Big O Tires will provide recommended prices for these tires, but franchisees have the discretion to set their own prices, unless doing so would violate any laws.
Big O Tires will also provide periodic recommended retail pricing in the franchisee's general market territory, focusing on price-competitive, regional retailers. This information is provided in an electronic format, allowing franchisees to update their pricing files in the BOT POS System. Franchisees retain the ability to change this retail pricing at their discretion.
While Big O Tires offers pricing recommendations and market data, the ultimate pricing decision rests with the franchisee, ensuring compliance with applicable laws and allowing for adjustments based on local market conditions. This flexibility enables franchisees to remain competitive and responsive to their specific customer base.