Must amendments to the Big O Tires Agreement be in writing?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.06 Modification of Covenants. Franchisee understands and acknowledges that Big O shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Section 17 or any portion hereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice thereof; and Franchisee agrees that it shall comply immediately with any covenant as so modified.
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 the right to reduce the scope of any covenant set forth in Section 17 of the agreement, or any portion thereof, without the franchisee's consent. This modification becomes effective immediately upon the franchisee's receipt of written notice. The franchisee must then comply immediately with the covenant as modified.
This clause gives Big O Tires considerable flexibility to adjust the franchisee's obligations, particularly concerning covenants, during the term of the agreement. The requirement of written notice provides a record of the change, but the franchisee has no ability to negotiate or refuse the modification.
For a prospective Big O Tires franchisee, this means that certain aspects of their operational requirements or restrictions could change at any time via written notice from Big O Tires. It is essential to fully understand Section 17 of the franchise agreement, which contains the covenants subject to modification, to assess the potential impact of this clause. Franchisees should be prepared to adapt their business practices to comply with any changes Big O Tires deems necessary.