During the Big O Tires Certification Program, is the trainee considered an employee of Big O Tires or the Trainer?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Trainee Status. During the Term of the Certification Program, Trainee acknowledges and agrees that he will not be an employee of Big O or of the Trainer, nor will Trainee have any authority to bind or obligate Big O or the Trainer in any manner whatsoever. Trainee shall not receive nor be entitled to receive any compensation whatsoever from either Big O or the Trainer for any services rendered or any work performed during any portion of the Term of the Certification Program. Neither Big O nor the Trainer will be required or obligated to provide any worker's compensation insurance or any other insurance coverage to Trainee during the Term of the Certification Program. Trainee agrees that s/he will be required to provide for his/her own insurance coverage, including worker's compensation coverage, health insurance, and general liability insurance coverage throughout the Term of the Certification Program.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, trainees in the Certification Program are explicitly not considered employees of either Big O Tires or the Trainer. The FDD clarifies that the trainee acknowledges and agrees they will not be an employee of Big O Tires or the Trainer during the term of the Certification Program. Furthermore, the trainee has no authority to bind or obligate either Big O Tires or the Trainer in any manner.
This arrangement has significant implications for prospective franchisees. Trainees are not entitled to any compensation from either Big O Tires or the Trainer for services rendered or work performed during the Certification Program. Additionally, neither Big O Tires nor the Trainer is obligated to provide worker's compensation insurance or any other insurance coverage to the trainee during this period. The trainee is solely responsible for securing their own insurance coverage, including worker's compensation, health insurance, and general liability insurance.
This arrangement is designed to ensure that the Certification Program remains a training exercise and not a form of employment. By explicitly stating that trainees are not employees, Big O Tires avoids potential legal liabilities associated with employment, such as wage and hour laws, worker's compensation claims, and employer responsibilities. This also shifts the burden of risk and responsibility onto the trainee, who must bear the costs of insurance and any potential liabilities arising from their participation in the program. Franchisees should carefully consider these factors and ensure they have adequate insurance coverage before participating in the Certification Program.