What is the consequence of a Big O Tires franchisee transfer that does not comply with the terms of Section 18?

According to Big O Tires' 2025 Franchise Disclosure Document, any transfer that does not comply with the terms of Section 18 of the franchise agreement will be considered null and void. This means that if a franchisee attempts to transfer their franchise without adhering to the procedures and conditions outlined in Section 18, the transfer will not be legally recognized or enforced by Big O Tires.

Section 18 outlines specific pre-conditions that a franchisee must meet before making a transfer. These include the transferee applying for a Big O Tires franchise and meeting the then-current standards and requirements, which may vary. The transferee or franchisee may also be required to execute the current form of the Franchise Agreement, which could include different fee structures, increased fees, and modified terms. Additionally, the transferee, franchisee, and Big O Tires must execute an Agreement and Consent to Assignment. Big O Tires also retains the option to purchase the interest being offered by the franchisee.

This provision protects Big O Tires by ensuring that any transfer of the franchise meets their standards and requirements, maintaining the integrity and consistency of the brand. For a prospective franchisee, this means they cannot freely transfer their franchise to just anyone; they must follow the outlined procedures and obtain Big O Tires' approval. Failure to do so will render the transfer invalid, potentially leading to legal and financial complications.