How does Big O Tires define 'Local Customer' in the context of a terminated Franchise Agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
The function of this group is more fully described in Big O's Franchise Disclosure Document.
(g) FRANCHISE AGREEMENT(S) mean the contract(s) that govern the relationship between Big O and the Franchisee related to the Designated Locations.
(h) LOCAL CUSTOMER means any customer of a Designated Location of Franchisee subject to a terminated Franchise Agreement, provided that such Local Customer shall not include any customer of Designated Location who has purchased any product or service offered by Big O or a franchisee from a Competing Regional Store.
(i) MANUALS mean various written, electronic, audio and video instructions and manuals, including amendments thereto, relating to the operation of Big O Tires store businesses which have been and may be provided to Franchisee by Big O and identified as such, including but not limited to Big O's Franchise Policies & Standards Manual, any training tapes, guides and any training module or any other proprietary information and other materials stating Big O's standards, policies, procedures, technical bulletins or other information.
(j) RESTRICTIVE PERIOD means the period commencing on the expiration or earlier termination of a Franchise Agreement and ending on the earlier of (i) the date which is two (2) years following the expiration or earlier termination of the Franchise Agreement, or (ii) as to each Local Customer of a Designated Location subject to a terminated Franchise Agreement, the date the Local Customer has purchased a product or service, other than any warranty related purchase, from a Competing Regional Store, so that, in such event, said customer is no longer deemed a Local Customer.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, a 'Local Customer' is defined specifically in the context of a terminated Franchise Agreement. Big O Tires defines a 'Local Customer' as any customer of a Designated Location of the franchisee that is subject to a terminated Franchise Agreement. However, this definition excludes any customer of that Designated Location who has since purchased any product or service from a Competing Regional Store that is either offered by Big O Tires or another franchisee.
This definition is important because it affects the restrictions Big O Tires places on marketing to these customers after a franchise agreement is terminated. Big O Tires agrees not to market to any Local Customer of the Designated Location during the Restrictive Period, provided the franchisee is in full compliance with the termination provisions, provides written notice of compliance, and Big O Tires does not dispute this compliance. This Restrictive Period lasts for two years following the termination or until the Local Customer purchases a product or service (excluding warranty work) from a Competing Regional Store.
However, Big O Tires and its franchisees retain the right to access the Consumer Database for Local Customers of a terminated franchise for the purpose of providing warranty work and follow-up. This access for warranty services does not allow Big O Tires to market to that Local Customer in violation of the agreement. All customer information, excluding that of Local Customers, remains in the Consumer Database and is not subject to use restrictions by Big O Tires or its franchisees after the Franchise Agreement terminates.