geographic_limit

Does the arbitration provision apply to Big O Tires plans in Nevada?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

BIG O: Big O Tires, LLC, a Nevada limited liability company

Source: Item 23 — RECEIPTS (FDD pages 102–535)

What This Means (2025 FDD)

According to the 2025 Big O Tires FDD, the franchise agreement specifies that Big O Tires, LLC is a Nevada limited liability company. This detail is relevant because the agreement also states that it will be interpreted under the laws of Colorado, and disputes will be resolved through arbitration as specified in the franchise agreement.

However, the FDD also indicates that if Tekmetric is a party to the dispute, the laws of Delaware will govern the interpretation, and the dispute will be submitted to the jurisdiction and venue of courts in Palm Beach County, Florida, or Harris County, Texas. Injunctive or equitable relief can be pursued in federal or state courts in Palm Beach County, Florida, or Harris County, Texas.

Therefore, while Big O Tires is a Nevada LLC and the standard agreement points to Colorado law and arbitration, these conditions are superseded when Tekmetric is involved in the dispute, shifting jurisdiction to specific courts in Florida or Texas and applying Delaware law. This creates a complex legal landscape for franchisees depending on the nature of the dispute and the parties involved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.