In the context of assigning a Big O Tires franchise, who are considered the 'ASSIGNOR' and 'ASSIGNEE'?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| The parties desire to set forth the terms and conditions under which BIG O will consent to assignment of the franchised Big O Tires Store at | ("Big O Tires Store"): | |
|---|---|---|
| ASSIGNOR: | [Type Franchisee Name of Seller] | |
| [Type Guarantor's Name as listed on Schedule 3], as Guarantor | ||
| [Type Street Address of Guarantor] | ||
| [Type City, State & Zip of Guarantor] | ||
| [Type Guarantor's Name as listed on Schedule 3], as Guarantor | ||
| [Type Street Address of Guarantor] | ||
| [Type City, State & Zip of Guarantor] | ||
| collectively and individually, the "ASSIGNOR" | ||
| ASSIGNEE: | [Type Franchisee Name of Buyer] | |
| [Type Guarantor's Name as listed on Schedule 3], as Guarantor | ||
| [Type Street Address of Guarantor] | ||
| [Type City, State & Zip of Guarantor] | ||
| [Type Guarantor's Name as listed on Schedule 3], as Guarantor | ||
| [Type Street Address of Guarantor] | ||
| [Type City, State & Zip of Guarantor] | ||
| collectively and individually, the "ASSIGNEE" | ||
| Effective Date of Assignment/Closing Date: [Type Effective Date of Transfer] |
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, when a Big O Tires franchise is assigned, the 'ASSIGNOR' is defined as the current franchisee (seller) along with any guarantors. The 'ASSIGNEE' is defined as the prospective new franchisee (buyer) and their guarantors.
This distinction is important because the assignment of a franchise involves a transfer of rights and obligations from the seller to the buyer. Big O Tires needs to clearly define these roles to ensure a smooth transition and to clarify who is responsible for what during and after the transfer process. The guarantors for both parties are also included in these definitions, indicating that their financial backing and obligations are also being transferred or newly established as part of the assignment.
For a prospective Big O Tires franchisee, understanding these definitions is crucial. If you are buying an existing franchise (becoming the ASSIGNEE), you need to be aware of the obligations you are assuming and ensure your guarantors are also aware of their responsibilities. If you are selling your franchise (becoming the ASSIGNOR), you need to understand what liabilities you are releasing and what obligations, such as outstanding payments to Big O Tires, you must fulfill before the assignment can be completed.