When does Big O Tires consider the entire Franchise Deposit earned?

According to the 2025 Big O Tires Franchise Disclosure Document, the entire franchise deposit is considered earned by Big O Tires once the applicant's franchise application has been approved. This means that upon approval, Big O Tires is entitled to retain the deposit as consideration for the costs and efforts involved in investigating and processing the application.

This policy has significant implications for prospective franchisees. While a portion of the initial franchise fee ($10,000) is refundable if Big O Tires does not approve the application, once the application is approved, the entire franchise deposit becomes non-refundable. This is a common practice in franchising, as the franchisor incurs expenses in evaluating the applicant and preparing to establish the franchise.

It is important for potential Big O Tires franchisees to understand that the Franchise Deposit Receipt Agreement is not a Franchise Agreement and does not grant any rights to use Big O's licensed trademarks or methods. The applicant remains an independent contractor and is not authorized to make any contracts or representations on behalf of Big O Tires until a full Franchise Agreement is signed. Therefore, applicants should carefully consider their decision before submitting their application, as the deposit becomes non-refundable upon approval, regardless of whether they ultimately proceed with signing the Franchise Agreement.