What commitment does Big O Tires make regarding customer service and support?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
tions of Big O.
- (a) Big O shall accumulate the Shared Information in the Consumer Database which may be accessed by Big O, Franchisee, and other Big O franchisees on a customer-by-customer basis as customers visit the stores of the other Big O franchisees, to provide customer relationship management, warranty support and services, national and local marketing (as limited by this Agreement) and any and all other services to the customers of Big O and its franchisees at any then operating Big O Tires store. Big O, and TBC Holdings, LLC may use the Consumer Database information to determine consumer data, trends, market analysis, customer marketing opportunities, product supply, inventory management and movement, retail store inventory recommendations, to share reports of stores' individual performance with the Big O Franchise Advisory Council and at franchisee meetings, and for such other purposes as agreed to by Big O and the Big O Franchise Advisory Council. Except as otherwise permitted in this Agreement, Big O shall not disclose the Shared Information to any third party not otherwise permitted to receive or have access to such Shared Information under this Agreement.
- (b) Upon the expiration or earlier termination of each Franchise Agreement subject to this Agreement, and during the Restrictive Period, Big O agrees not to market to any Local Customer of the Designated Location subject to the terminated Franchise Agreement, provided that (i) at the time of the expiration or termination of the Franchise Agreement, and at all times during the Restrictive Period, Franchisee is in full compliance with all of the termination provisions of the Franchise Agreement, including all on-going post termination provisions (ii) Franchisee provides Big O with written notice of such affirmative compliance within thirty (30) days of the expiration or termination of the Franchise Agreement, and at such other times as Big O may reasonably request; and (iii) Big O does not dispute such affirmative compliance in writing within fifteen (15) days of receipt of said written notice. However, should Big O dispute the affirmative compliance within the fifteen (15) day time frame provided in this subsection, then the parties acknowledge and agree that the dispute shall be submitted to the Franchise Advisory Council to resolve. The Franchise Advisory Council shall have sixty (60) days in which to render its decision, which decision shall be binding on Big O and Franchisee. Until the Franchise Advisory Council has rendered its decision, Big O agrees that it will not market to any Local Customer of the Designated Location.
- (c) Notwithstanding the foregoing, Big O and any franchisee of Big O may be permitted to access that portion of the Consumer Database related to a Local Customer of a Designated Location subject to an expired or terminated Franchise Agreement prior to the expiration of the Restrictive Period solely for purposes of providing warranty work and follow-up responses thereto if such customer visits another franchisee of Big O to have warranty work
performed. The provision of warranty services only shall not allow Big O to market to that Local Customer in violation of subpart (b) of this Section 4 above.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires accumulates shared information in a Consumer Database that can be accessed by Big O Tires, its franchisees, and other Big O Tires franchisees. This database is used to provide customer relationship management, warranty support and services, national and local marketing, and other services to customers at any operating Big O Tires store. Big O Tires and TBC Holdings, LLC, may use the Consumer Database information to determine consumer data, trends, market analysis, customer marketing opportunities, product supply, inventory management and movement, and retail store inventory recommendations. They may also share reports of stores' individual performance with the Big O Franchise Advisory Council and at franchisee meetings. Big O Tires will not disclose Shared Information to any third party not otherwise permitted to receive or have access to such Shared Information under the Franchise Agreement.
Big O Tires also addresses warranty support in the FDD. Big O Tires will absorb the franchisee's costs for claims related to replacement due to road hazards and/or workmanship and materials contemplated in the terms of the applicable Big O Program Products Warranty for Big O I Tires, and claims related to the prorated manufacturer's workmanship and material warranty for Big O II Tires and any other tires that are Big O Program Products. These absorptions are in accordance with the terms and procedures prescribed by the Manual. The franchisee will cover all other warranties. Big O Tires may establish requirements to honor, offer, and/or otherwise participate in warranty programs for products sold other than Big O Program Products. Franchisees must comply with any applicable laws with regard to any warranties and guaranties that it offers.
These commitments to customer service and support through data management and warranty programs are beneficial for prospective Big O Tires franchisees. The Consumer Database allows for targeted marketing and customer relationship management, potentially increasing customer loyalty and sales. The absorption of certain warranty costs by Big O Tires can reduce the financial burden on franchisees, making it easier to manage customer claims and maintain customer satisfaction. However, franchisees should be aware of their responsibilities for other warranties and the need to comply with all applicable laws regarding warranties and guarantees.