What is the amount of the Insurance Administrative Surcharge that Big O Tires charges?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| National Auto Service Warranty and Roadside Assistance Plan | Currently $75.00 per store, per month, but can be changed by vendor. | Billed monthly, due on the last day of the calendar month. | Amount billed to Big O by a third party who administers the National Auto Service Warranty and Roadside Assistance Plan for Big O and rebilled to franchisees by Big O. |
Source: Item 6 — OTHER FEES (FDD pages 21–35)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the franchise does not charge an "Insurance Administrative Surcharge". However, Big O Tires franchisees are required to participate in the National Auto Service Warranty and Roadside Assistance Plan. The current cost for this plan is $75.00 per store, per month, though this amount can be changed by the vendor.
This fee is billed to Big O Tires by a third-party vendor who administers the National Auto Service Warranty and Roadside Assistance Plan. Big O Tires then rebills this charge to its franchisees. The fee is billed monthly and is due on the last day of each calendar month.
As the fee can be changed by the vendor, it is important for prospective franchisees to confirm the current amount and any potential future changes with Big O Tires during their due diligence. Understanding the costs associated with mandatory programs like the National Auto Service Warranty and Roadside Assistance Plan is crucial for accurate financial planning.