factual

What is the current Rebill Charge per Rebill Tire for a Big O Tires franchise?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

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C. Rebill Charge

The Rebill Charge is currently $3.00 per Rebill Tire. This charge may be increased or decreased in our discretion as required by business operations after consultation with the Franchise Advisory Counci

Source: Item 23 — RECEIPTS (FDD pages 102–535)

What This Means (2025 FDD)

According to Big O Tires' 2025 Franchise Disclosure Document, the current Rebill Charge is $3.00 per Rebill Tire. This charge is applied to tires purchased under Big O Tires' rebill program, which allows franchisees to buy tires directly from manufacturers or distributors. In this arrangement, the manufacturer or distributor invoices Big O Tires, who then invoices the franchisee, including the Rebill Charge.

The FDD specifies that this Rebill Charge may be adjusted at Big O Tires' discretion based on business needs, but only after consulting with the Franchise Advisory Council. This council provides a platform for franchisee input regarding such financial adjustments. The Rebill Charge is a component of the Big O Program Products Price, which also includes acquisition costs, mold depreciation costs, warranty costs, and distribution costs.

Big O Tires also conducts audits, with the assistance of the Franchisee Audit Committee, to ensure the Rebill Charge is correctly applied in sales transactions. Errors in the inclusion or exclusion of the Rebill Charge are identified, and their financial impact is calculated. These impacts are then factored into an End of Year Pricing Adjustment. This adjustment can result in either credits to franchisees' accounts if they have overpaid or adjustments to the following year's Big O Program Product Prices to recover underpayments, ensuring financial accuracy and fairness in the pricing structure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.