Does an assignment by Big O Tires bind its successors and assigns?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
18.01 Assignment by Big O. This Agreement and all rights and duties hereunder may be freely assigned or transferred by Big O and shall be binding upon and inure to the benefit of Big O's successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the franchise agreement and all rights and duties can be freely assigned or transferred by Big O Tires. This assignment is binding upon and benefits Big O Tires' successors and assigns.
This means that if Big O Tires were to be acquired by another company or undergo a merger, the new entity would inherit all the rights and obligations of Big O Tires under the existing franchise agreements. For a franchisee, this implies that the terms of their agreement with Big O Tires will remain in effect even if the ownership or control of the Big O Tires brand changes hands.
It is important for prospective franchisees to understand that this clause ensures continuity in the franchise relationship, regardless of changes within the Big O Tires organization. However, franchisees should also consider the potential impact of a new owner or management team on the overall direction and support provided by the franchise system.